Payday Loans In Our Life - How It Works

Nowadays, we are living in a digital world, and numerous services are available online. We have no need to be physically present at the offices in order to commit our daily actions. During the recent decade, retail banks and credit organizations started to provide online services. They even granted an opportunity to make utility payments, get quick cash online, put a deposit, make a transfer of funds, etc.

What is a Payday Loan? 

Now, if you have need of funds, it is more convenient to obtain fast cash online rather than visit a payday loan company or wait in lines for hours in order to get your advance cash.  Furthermore, in many cases, banks or credit organizations are not able to qualify for money since you hold a bad credit rating. Definitely, this is a problem for a great number of Americans because you may have lower credit scores and not be eligible in the eyes of traditional lenders. And here, the importance of applying online rises.  For instance, you can browse the phrase “online loans near me” and get a chance to get acquainted with a considerable number of offers suggested by online lenders.

Payday Loan’s Meaning

When Americans want to borrow cash advance, they first try to learn about the product. They simply search for the "definition payday loan" expression, and the internet provides a vast bulk of definitions that describe the true nature of cash advances. The following is the most common explanation for these products: “a payday loan is a small short-term sum of money due within 14 days.” These sums range from $100 to $2500 and sometimes come with high-interest rates and APR. Thus, before picking up one of the available options, borrowers should carefully consider terms, rates, and other additional charges not to get into a trap of debts. 

How Does a Payday Loan Work in Shinyloans

Online payday loans are one of the most efficient methods of getting quick cash; thus, they are also called “fast cash,” “cash advance,” or “payday advance” loans. For instance, you have an upcoming repayment of a loan or unpaid bills, and you need fast cash to cover your unexpected expenses. You may apply online here and get your funds within one day. These short-term obligations are to be paid by your next paycheck. 

Many people believe that payday advances are a type of robbery and that all lenders are scammers. However, that opinion lacks context because you cannot form a complete idea based on the actions of a few fraudsters. On top of that, many of us do not pay attention to important factors that are part of the lending culture. The following are the main advantages that borrowers may benefit from online payday lending:

1. The Speed of Action

Basically, lenders submit the applications of borrowers extremely quickly after you provide the requested information. You have no need to fill out long and tedious forms as they used to be in the case of traditional lenders. The speed of action is deemed to be the key point because it makes this sphere of lending more competitive.

In the case of traditional lending, the process of getting money may take an extended period. You may wait a couple of weeks before you have access to your requested funds. Furthermore, you have no guarantee that your request will be approved. In the case of online lending, borrowers get notified about the lenders’ decision and the status of their request within a few hours after the submission of the application. Some lenders may even give feedback to you within one hour.

2. Convenient to Apply

All procedures related to online cash advances are entirely online and are reliant on the platforms where you apply. There is a need to book an appointment or visit their office for discussions. You can apply online by filling out an application form. When your application is approved you are free to use your funds the way you want (without any limitations). 

However, most of the traditional loans have an exact purpose, due to which the funds must be utilized. For example, if you are approved for a car loan, the one and only thing that you can do is just buy a car. Keep in mind that using a purpose loan for alternative purposes may include huge risk because the lender of funds will be entitled to take legal action against you.

3. Requirements

The requirements of online cash advances are not as strict as requirements in traditional banks or credit unions. The main focal issue is income sources. In contrast to the requirements of traditional financial institutions, online lenders will not request you to provide the collateral for securing the debt. Another requirement that online lenders may claim is the active checking account where the money can be credited. 

Aside from the two most important requirements listed above, borrowers must also provide some personal information, such as their full name, date of birth, legal US address, email address, and phone number, Social Security number, driving license, and a government-issued ID. However, be sure and check all requirements of lenders as they may vary based on different states and regulations.

4. You may be Eligible for a Bigger Amount

The amount of payday loans provided by lenders may differ based on your salary range. When you make the first payment “on time,” the lender can raise your limit because you are gaining confidence in the lender's eyes. The amount of cash advances depends on the exact lender and, of course, on the state where you apply. For instance, in our platform, lenders may be willing to provide the maximum amount of $2500.

Get Low Interest Rate Payday Loan With Shinyloans

Though small cash advances can have interest rates of 20% - 30% and an APR of more than 400%, Shinyloans' third-party lenders offer more reasonable rates to our borrowers because they understand that these sums will help people get out of emergencies. Furthermore, because cash advances are only due for two weeks, APR will not ruin our client's financial stability because it is calculated on a yearly basis; the abbreviation APR stands for annual percentage rate.

About Military Lending Act

The Military Lending Act (MLA) was adopted in 2006 and is enforced by the Department of Defense. It protects active duty military members, their spouses, and their dependents against predatory lending. It caps the interest rates that may be imposed on certain forms of consumer loans at no more than 36 percent. Such consumer loans include small cash advances, deposit advance products, and car title loans.