The business of online payday advances recently added new requirements, thanks to federal legislation, making loan terms and conditions more transparent. Payday advances are an extension of the age-old advance on a paycheck. But instead of asking your boss to front you the cash, you ask a lender instead.
Regardless of your credit standing, you can qualify for quick cash. There are just a few requirements in securing an online payday advance:
- You must be a U.S. citizen or permanent resident.
- You must be 18 years of age or older before applying.
- You’ll need a bank account in your name.
- Provide a paycheck stub, social security check or some other proof of income.
- Provide an email address and phone number.
Thanks to the recently passed Consumer Credit Protection Act, payday advance customers have the right to vast resources of information when seeking and securing fast cash. This can make the loan process more clear for consumers, empowering them with the knowledge of exactly how much a particular loan will cost in the long run.
Under the Consumer Credit Protection Act, or the Truth in Lending Act, all fast cash lenders must provide written terms, including details on how much the loan will cost. Details on the loan repayment term, finance charges, interest rates, late fees and missed payment penalties must all be disclosed. Any company providing online payday advances must provide information on all of these terms, up front and without being asked.
But that’s not all. Different states have different loan laws. In fact, 12 states ban fast cash loans altogether. If you live in one of these states, though, you might be able to get an online payday advance.
In the remaining 38 states, the terms of fast cash loans, such as online payday advances, are pretty much the same. Repayment periods can last anywhere from two weeks to two months. The maximum loan amount is usually $1,500 or less.
Interest rates are one segment of a loan that can vary quite a bit from lender to lender. Repeat customers who have been known to pay back their online payday advances on time and within the agreed upon terms are typically rewarded with better rates the next time around.
Taking out a fast cash loan is a double-edged sword for people with bad credit. On the one hand, such loans can be a useful tool for a quick income boost. It’s also one of the few ways someone with bad credit can get a loan at all. Most other types of loans require a good credit score, but online payday advances rely on your steady employment as your security. But on the other hand, since fast cash loans are unsecured, interest rates are usually higher than other loan types.