A mobile payday loan is a short term loan that you can acquire in just a few hours to help you handle an emergency. Since this type of loans is usually not secure, their interest rates are slightly higher than the ones you will get if took the traditional bank loan. Also, if you have an erratic source of income and you are unable to come up with a monthly budget, this loan can be of great benefit to you. The good news is that currently, there are government has set regulations about the loans interest rate. This assures you that you the fees and rates you receive are not exorbitant. With this loan, you can effectively avoid the many bank overdraft fees. Payday loans have varied pros and cons and it is advisable to understand each of them well before deciding to apply for them.
Each loan and lending institution has already set rules and requirements that a borrower has to meet before qualifying for a payday-loans-online. Although some financial institutions may insist on knowing the minimum amount you earn or the minimum time at your job for you to qualify to receive a given amount of loan, the basic requirements that lenders will request for an online application include the following:
- An active checking account
- Give proof of a stable source of income
- A valid identification card
- Be at least 18 years of age
- For US residents, you must have an SSN number
The Application Procedure This Type of Loan
Although there is a slight variation in the application procedure employed by lending institutions, the general rule is that the borrower has to register online first. The basic information that you have to fill in the application form varies from one lender to the other. Once you submit a filled and signed form plus all the other required documents, the lending company’s staff will review your application and either accept or decline it. You can use a Smartphone or a computer connected to the internet for you to register.
Once it has been accepted, this lending institution will send you a PIN (personal identification number). With the use of this PIN, you have to then text the loan company stating the exact amount of money you intend to borrow. The company replies this text.
In case you are approved, you have to text them back, stating that you have agreed to the firm’s or company’s set terms and conditions. Take enough time to read about these terms and conditions because immediately you text your agreement, you become responsible for the loan’s repayment.
Though there are slight variation, you should be able t receive your cash loan within an hour or so after agreeing to the set terms. See more also here.
- Pros of Using Mobile Payday Loans
- It is easy to apply and qualify
- Your personal information is always kept secure
- This loan can be accessed quickly and just when you need it
- You can use this money for anything you wish
- Everyone can apply and get it. It does not matter whether or not you have a bad credit or do not have credit at all
- The government regulates this business to avoid customer exploitation
- It has psychological benefits like relieving you of stress related to financial constraints
- The borrower pays high interest rates
- Delay in loan repayment can cause the borrower to fall deep in debt because of high lateness and other related charges.
It is clear that the benefits of using this loan to handle emergencies exceed the disadvantages of using it. It is, therefore, advisable to seek a payday loan but be careful not to make it a habit.