Everything You Wanted to Know About Payday Advance Loan and Were Afraid To Ask
For approval of a payday advance, the minimum requirements are as follows. The applicant must be minimum 18 years of age. There must be an open checking account that is being used for minimum ninety days. The person must be employed. The checking account should show that there is a deposit of minimum$1000 per month. There is also a need of a current phone number. The company lending the payday advance confirms the current job status with the employer.
Work procedure of payday advance
First an applicant has to apply for a payday advance. Then, the company needs to approve the money loan. For this the information that is supplied by the applicant is processed. The applicant is notified regarding the approval. The lending company deposits the loan electronically in the checking account overnight. For an overnight deposit to happen, the applicant must be approved before a certain time on a banking day. The date on which the payday advance is due, the lending company just deducts the amount of the payday advance along with the interest rate that is acceded upon, directly from the checking account. If the payday advance is approved on any day from Monday to Friday, the applicant can expect the money on the next business day i.e. from Tuesday to Friday, respectively. If the payday advance is approved on Friday, are available on Monday. If the payday advance is approved on Saturday or Sunday, it is available on Tuesday.
Failure to repay
The payday advance companies offer an extension program to assist the customers in the payments. At the time of extension, the customer has to pay just the finance charge plus the fee that are due at that date. In this way, an extension of the payday advance is possible three times. Once the third extension is over, the company needs an additional payment. If the payday advance is less than $500, the additional payment is $50. If the payday advance is more than $500, the additional payment is $100. Thus, the customer has to pay the payday advance, the finance charges and the additional payment. If the repayment of the payday advance exceeds beyond 27 days, it is expected that the customers must pay double the amount of the regular payment.
Usually, the lending company does not check the credit history regarding the applicants. Sometimes the database called as Teletrack is checked. This information sharing system is utilized by loan agencies. It is used to confirm that the applicant does not have a record that there are past unpaid payday advances against his name. In a majority of cases, there is no need to fax any documents to procure the payday advance. When the application is done online, the process of application encompasses almost all the information that is required. The no faxing payday advances save the time of the customers and the hassle related with the transport of documents to and forth the company for approval is also got rid off. It is also possible to apply for a payday advance over the phone. The professionally trained customer service representative would assist in completing the application over the phone.