When it comes to dealing with a tough financial situation, one of the best ways to cope is to take out a loan to pay for emergency expenses and keep yourself afloat. However, taking out a traditional loan is a long and time-consuming process due to all of the factors involved.
If you’re looking for immediate financial support, then a payday loan is a far better choice for a number of different reasons. While the loan amount is much smaller, the repayment terms are also shorter and you won’t be subject to a credit check.
This means it’s a great option for people that would otherwise be rejected by their lender, and also for people that are looking to rebuild their credit rating. You also don’t need to submit as many documents, and you can be approved in just minutes after your application.
In this post, we’re going to be taking a look at how long it takes for a payday loan to be approved and funded, and why it’s a far better choice than a traditional loan from your bank or a specialized lender.
Step #1: Apply for a Payday Loan (10 minutes)
First, you’ll need to start your application process with a direct payday loan lender. Unlike traditional loans, you can apply for a payday loan either online or in-person.
Applying in-person may be preferred by people that would like to speak to someone during the process. On the other hand, applying online is much more convenient for others, and you can generally complete the entire payday loan approval process in the comfort of your own home. It should only take a few minutes to start the process.
Step #2: Scan and Submit the Required Documents (10 minutes)
You’ll be required to submit a couple of documents in order to prove that you’re a qualified candidate for a payday loan:
- Proof that you have an active and open checking account. This is to prove that you have a bank account that we can pay your funds into.
- Documents that show you have a steady income. You’re going to need pay stubs, income letters, or tax documents that show you earn income on a regular basis.
- Government-issued identification. This is required to prove that you’re a resident of the state in which you’re applying for a loan and that you’re over 18 at the time you take out the loan.
If you’re submitting your application online then keep in mind that you’ll need to convert them to a digital format, such as scanning them, before you can submit them. If you’re applying in person, then photocopying the documents is acceptable. This step is generally very quick, especially if you have each of these documents on hand.
Step #3: Wait for Approval (5 minutes)
Unlike a traditional loan, the approval process of a payday loan is much shorter because there’s no need for us to carry out a credit check. Credit checks are common for traditional loans because lenders need to know that you’ll be capable of paying them back on time. With a payday loan, there’s no need for a credit check since the loan amounts are much smaller. This step should only take a couple of minutes.
Step #4: Receive Your Funds (5 minutes)
Most payday lenders will deposit the money into the account that you’ve provided and you can expect to see the funds within a few days.
At Cashback Loans, we offer a direct funding option that enables us to deposit the funds directly into your account within just a few minutes of accepting your application. This provides you with the funds immediately, meaning you can use them to deal with financial emergencies without having to wait several days.
As you can see, a payday loan with Cashback Loans takes only about a half-hour to approve and fund, assuming you have the necessary documents on hand. It’s much faster than a traditional loan and is generally the better option for any financial emergency.