What A Payday Loan Is: Payday Loans Defined & Explained
When we think of loans, we often think of loans valued at thousands of dollars. But what is a payday loan and how does it fill the gap in borrowing needs targeted at smaller amounts?
Roughly fifty-four percent of Americans live paycheck to paycheck, leaving little room for them to remedy financial emergencies that may occur between one payday and the next. It can leave some feeling out of options, but thankfully, this is the type of financial emergency that payday loans are designed for. So, exactly what is a payday loan?
The Payday Loan Definition
When searching for a payday loan definition, one does not have to look much further than the name of the loan itself. Payday loans are unsecured loans that act as an advancement of your next paycheck/payday.
As they act as an advancement of your next paycheck, when getting a payday loan, a payday loan provider such as Carolina Payday Loans, Inc. will examine your most recent paystub. We also require your government-issued photo ID to prove your identity and a blank check from an active checking account in your name to verify your banking information.
Once we have this information, we can assess if you qualify for a loan. If you do, you can normally get paid as soon as the same day or the following business day.
Are Payday Loans Long Or Short-Term Loans?
When getting a loan, you agree to a time frame for when you’d pay back the loan. Some traditional bank loans can go on for years. An example of a long-term loan would be a car or mortgage loan.
Other loans, however, are short-term loans meant to be paid back within a shorter period of time. In some cases, it could be as short as a month, or even a week.
Going by the payday loan definition, you can surmise that payday loans would fall under the category of short-term loans. Acting as an advancement of your paycheck, payday loans are usually paid back at the time of your next paycheck, which could be in a week or two depending on if you are paid bi-weekly.
The Term Is Defined In the Payday Loan Agreement
Although most payday loans are expected to be paid come your next payday, each case can be different, and the repayment term may be different if you have alternative sources of income. This will depend on the loan agreement that both you and the lender settle on.
What Is A Payday Loan Used For?
South Carolina payday loans are often obtained for instances in which you need cash fast such as financial emergencies. You can often get the funds you need within 24 hours from when you are approved for the loan.
Examples of financial emergencies would be situations such as your car breaking down and needing repair before your next payday.
If living paycheck to paycheck, finding the extra funds to get your car fixed so that you can continue to go to work and get paid can be problematic. In this way, payday loans help bridge the gap in your finances so that you can meet the financial needs of the situation.
Other examples of financial emergencies that would require a payday loan are:
- Medical bills/Emergency room visits.
- Home repair.
- Paying rent.
- Utility bills.
- Important travel.
What Is A Payday Loan Lender I Can Work With?
If a payday loan sounds like an option you would like to utilize, Carolina Payday Loans, Inc. can help you get the loan you need.
With fast approval, same-day payout, and no credit checks, Carolina Payday Loans, Inc. can get you approved for anywhere from $100 to $550 in as little as a single day.
The Quick Payday Loan Process
With an understanding of how time-sensitive emergencies are and the occasional need for financial help between paydays, Carolina Payday Loans, Inc. makes getting a payday loan simple and easy.
- To get started, fill out the quick online payday loan form to have a representative contact you and go over the three required documents needed to apply: a driver’s license or state-issued ID, your most recent paystub, and a blank check from an active checking account. They will also schedule an appointment with you.
- Once you have gathered the required documents, bring them to our nearest location to be verified and determine if you qualify for a loan.
- The representative will go over the rest of the application process and ensure all your questions are answered before proceeding.
- Once completed and approved, you can receive your money the same day or on the next business day.
Submit A Quick Cash Online Form Today
If you feel confident with your knowledge of what is a payday loan, you can move to the next step with the same level of confidence. Get your payday loan process started today by submitting a quick cash online form at Carolina Payday Loans, Inc. today.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.