Your Guide To Understanding How Payday Loans Work
June 30, 2021 | June Mckaig
If you’re experiencing urgent money problems that need to be handled on short notice and a few hundred dollars could really help you out – it could be helpful to have the knowledge of how payday loans work.
Payday loans are an accessible, simple, and fast way to get some cash together when your paycheck is still far away, but you need extra money to cover unplanned expenses.
Hold your horses, though! Before you dive head-first into your loan application, there are a few things you need to learn about how payday loans work.
How Payday Loans Work In General
Payday loans are a type of unsecured short-term fast loans. Unsecured means you don’t need to provide the lender with collateral to get approved. Qualifying requirements for payday loans are simple and flexible.
An important thing to remember about how payday loans work is that they’re not designated to be an ongoing solution to a large problem, but rather a quick one to an unexpected expense that needs covering ASAP but hasn’t been accounted for in your budget.
Think medical expenses, an emergency visit from an electrician or a plumber, or having to urgently move out due to a disagreement with your landlord.
The Payday Loan Application Process
The application process for payday loans is rather straightforward and quick. There are no complicated bureaucratic tapes to cross through, just a short assessment from the loan representative that doesn’t tend to last for over an hour.
Each lender’s process tends to be different, but usually, you get the cash you qualified for on the next bank business day at the latest.
At Carolina Payday Loans, Inc. for example, you’ll get the cash the same day, right after finishing the application and getting approved.
The maximum amount of money you can get through a payday loan from Carolina Payday Loans, Inc. is $550.
How To Qualify For Payday Loans In South Carolina
At Carolina Payday loans, Inc., the qualifying requirements for online payday loans are quite simple as a whole and mainly revolve around proving you’re of legal age (18+) and having the ability to prove your income source.
You’ll need the following items to be eligible for a payday loan:
- A government-issued photo ID or driver’s license.
- Your most recent pay stub as proof of income.
- A blank check from an active checking account in your name.
How Payday Loans Work If You’ve Got Bad Credit
Your credit situation generally doesn’t affect your chances of getting a payday loan. At Carolina Payday Loans, Inc. you can get approved regardless of what your credit looks like – even if it’s outright nonexistent.
How Payday Loans Influence Your Credit
They actually don’t affect it at all, as Carolina Payday Loans, Inc. doesn’t report its loan information to any credit agencies.
Even if you ask for it, Carolina Payday Loans, Inc. never reports its loan information, so when applying you can rest assured your information will remain solely with the lender, not affecting your credit in any way, shape, or form.
How Payday Loans Work If Your Income Is Unstable
Carolina Payday Loans, Inc. does its best to accommodate all kinds of incomes. If your income is unstable (i.e. it doesn’t come at a set date or the amount varies depending on circumstances), be sure to inform the loan representative about it.
Unstable income won’t render you outright ineligible for the loan, but it may influence the maximum loan amount you qualify for.
How Payday Loans Work If You’re Unemployed
Typically, providing your most recent pay stub as proof of your income source is a requirement to qualify for a payday loan.
That said, Carolina Payday Loans, Inc. will accommodate alternate means of income if you’re unemployed.
Think of unemployment or welfare benefits, any court-mandated compensations you may be getting, pensions, or even savings.
As with unstable income, make sure to inform your loan representative about it and make sure to provide the correct documentation to prove your income.
How Payday Loans Work Online (And How To Apply For One)
- You can start by submitting a quick payday loans South Carolina form to send in your information.
- Answer your phone when the loan representative calls you. They’ll provide further information about the process and answer your questions. They will also schedule an appointment with you.
- Take the required items (your ID, your most recent pay stub, a blank check from an active checking account in your name) to the meeting the loan representative sets up.
- Let the representative assess your documents to determine if you qualify for the loan.
- Finish the paperwork and get the cash you need!
Submit Your Online Payday Loans Form Today
Now that you know how payday loans work, go ahead and apply! You could get up to $550 by the end of the day and it could take as little as 30 minutes!