Frequently asked questions about payday loans
Payday loans come with a buffet of advantages, such as flexible repayment periods, no credit checks, quick loan approval process, etc. These loans help you meet your immediate expenses when you fall short of cash. Online lenders don’t go through a vast process of checking their clients' backgrounds before providing the loan, thus making the process easy and quick for everyone. You can expect to get the money within one business day. Even though these loans operate quickly, many people have questions on various aspects of payday loans.
1. Can you get a payday loan without a bank account?
Online lenders usually transfer money directly to your bank account within one business day. However, if you don’t have a bank account, you will have two options:
- In-store cash pickup – some lenders allow you to pick up cash from their nearby offices. It may take longer to process your loan, but you will not have to go to your bank to withdraw your money.
- Prepaid debit card – some lenders can also load your prepaid debit card with your loan amount. Make sure you confirm the terms and conditions of these options before signing the documents.
2. What is the difference between a classic payday loan and an installment payday loan?
A classic payday loan is widely popular because the lender can transfer the loan amount quickly. You can repay your loan, plus interest, within your chosen loan repayment date. Usually, these loans last for a month or 45 days. The amount is also relatively small, ranging from £50 to £500.
Installment payday loans last longer than classic payday loans. The repayment period ranges from three to twelve months, depending on your agreement. Plus, the loan amount is also more compared to classic payday loans. For example, installment payday loans can range between £50 and £10,000. unsecuredloans4u, for example, can offer both classic payday loans and installment payday loans, according to your repayment flexibility.
3. Can your spouse get a separate payday loan?
Yes, he/she can. Payday loans work individually. Your entire family can take payday loans, provided everyone has a repayment schedule ready. Lenders only consider your income and your repayment structure. You and your husband/wife can take out separate loans from the same lender. But remember: payday loans have high-interest rates. You may run into the risk of falling into deeper debts if you have multiple loans.
4. Can you opt for payday loans if you receive Social Security?
You can still qualify for payday loans even if you receive Social Security benefits. Although most lenders want to know your average income before sanctioning your loan, you can search for online microlenders who will consider your application. Those who receive welfare benefits can also have a financial crisis. Therefore, contact several lenders and ask if they provide payday loans even if you don’t have a regular income source.
These questions should clear all your doubts regarding payday loans. Make sure you read the terms and conditions of your loan offer carefully before signing any document.
