The procedure of applying
payday loan is different in every company. But in general
you must follow the steps below:
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To get a payday loan in most cases, all you have to
do is complete an application form. The form will ask
for basic information about your personal information,
your job and your income since the loan amount will be
based upon that information. They usually also ask for
bank account numbers and Social Security Numbers. Regarding
the amount of money, some people choose to ask for a certain
amount of money when applying for their loan but others
allow the loan company to decide how much money will be
offered to you.
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Once completed, the application is forwarded to the payday
loan procedures lender for review. If the applicant meets
the minimum requirements they will be notified (typically
via email if you are applying online) that they are approved.
Once approved the applicant will be asked to print and
sign a signed copy of an agreement / contract with the
loan amount, fee and terms specified. You should read
carefully the loans terms and conditions, as well as making
sure the site is secured before giving any information
online. Lenders may also require faxed copies of paycheck
stubs, bank statements, and a post-dated personal check.
For example, a person who wants to borrow $300 would write
a check for $360 and date the check for two weeks from
now. The customer gets $300 from the lender; two weeks
later, the lender cashes the check and gets $360 back,
for a $60 profit of finance charges.
The payday loan company will verify the faxed information
is correct and administrate the loan. Most payday loans
lenders will electronically deposit the loan amount in
the applicant’s bank account, depending on the time of
day the loan application was received and approved. Payday
loans lenders typically do not process loans on weekends.
The borrower usually provides a check or debit authorization
to the lender for the amount of the loan plus the fee.
The check is either post-dated to the borrower's next
payday or the lender agrees to defer presenting the check
for payment until a future date, usually two weeks or
less. On the specified pay date, the payday loan procedures
lender will electronically withdraw the loan amount plus
specified fees if they don’t receive cash payment from
the borrower.
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If the borrower does not have the funds to repay the
loan, the loan is often refinanced through payment of
an additional fee. If the borrower does not redeem the
check in cash and the loan is not refinanced, the lender
normally puts the check or debit authorization through
the payment system. If the borrower's deposit account
has insufficient funds, the borrower typically incurs
a NSF charge on this account. If the check or the debit
is returned to the lender unpaid, the lender also may
impose a returned item fee plus collection charges on
the loan.
