Do you want a payday loan, but need money in a hurry? Perhaps you’re wondering how fast the process typically is.
Well, our experts at MaxCash have the answers. Let’s dive right into what makes payday loans so unique and fast.
Explaining the Payday Loan’s Situation
When you’re looking for a loan, you’ll find that there are many different types. Payday loans are unlike most other types of loans. When people think of loans, installment loans generally come to mind. But installment loans are vastly different form paydays loans.
Installment loans are easily the most common variety of loan. Have you worked with a mortgage loan, personal loan, or college loan? If so, then you’ve had experience with an installment loan!
That may seem odd, considering how little these types of loans have in common, but there’s one aspect that they all share with each other: the way they’re repaid. The process for installment loans can be broke down into three steps:
- The Initial Loan – Each and every installment loan starts in the same way. Your lender will give you the full amount of the agreed-upon loan, all in one lump sum.
- Loan Usage – Once you’ve received your loan, you’ll be able to put the funds you’ve received towards their agreed-upon usage.
- Repayment – After your loan’s been received, you’ll have to stick to the agreed-upon payment plan. With an installment loan, the process involves a slow, gradual repayment, usually starting a month after receipt of the initial payment.
So long as your loan features all three of these steps, you’re dealing with an installment loan. This does, however, leave payday loans out in the cold. Let’s take a look at some of the big differences that set payday loans apart from installment loans.
What is a Payday Loan?
When comparing payday loans and installment loans, some differences immediately stand out—such as the length of the loan. Most installment loans last years, but payday loans usually last only a few months. Some are as short as two weeks! The loan repayment isn’t in small batches either, it’s all at once.
Payday loans are meant to offer fast money. Funding is usually available for eligible borrowers the same day they apply. They are used for smaller loan amounts than other types of loans. Payday loans are usually no more than $1,000.
When is the best time for someone to acquire a payday loan? Well imagine that a tree falls onto your house, causing some hefty damage. You may not have the money on hand, so what do you do? You could acquire a payday loan to acquire fast funds right when you need them.
That’s right, the best usage of a payday loan is to push back those difficult costs to a point where you’re financially equipped to handle them. The lower amount of a payday loan is just enough to cover a lot of emergencies. So why not get started?
Getting Started on a Payday Loan
When you start the payday loan process, you’ll be starting it the same way you do every other type of loan: by making your way onto MaxCash’s website. More specifically, you’ll want to find their contact section, which will feature some methods of getting in touch. Using those methods will see a representative from MaxCash asking for some specific information, including:
- Your Address – MaxCash will use your city, state, and zip code to try and find you a lender that serves your area.
- Contact Info – In order to put you and your lender in touch with each other, MaxCash will need your name, phone number, and email address.
- Financial Documents – Unique to payday loans, this section will require you to input your social security number and proof of income.
Once this information has been provided, you’ll be able to move forward onto the next phase of the payday loan process.
Tracking Down a Payday Loan
With your information in hand, MaxCash will be working as hard as they can in order to find you a payday loan. They’ll start this process by reaching out to lenders that serve your area, presenting your information and making a case on your behalf. If the lender likes what they see, they’ll send MaxCash some initial offers.
MaxCash will negotiate with your potential lending options, asking whether they’re willing to offer better rates and terms. Once MaxCash is done acquiring loan offers, they’ll compare them to find the most compatible one for your financial situation.
Connecting for Your Payday Loan
Once your payday lender has been found, MaxCash will put you in contact with your lender. Thanks to the contact info you provided, they’ll be able to get in touch with you either by phone or email.
When that connection has been made, it’s time to do the last few negotiations with your direct lender. Together, you two will decide by which you’ll be exchanging funds. Those methods include the following options, amongst others:
- In-Person Exchanges
- Funds by Mail
- Online Lending Sites
Once you’ve determined the method by which you and your lender are going to be exchanging money, you’ll be all done with the lending process. Typically, applicants are funded within one business day.
If you want to learn more about payday loans, you can check out MaxCash for even more informational articles.