Payday Loans are a short-term cash loan but think of them more as a loan for an unexpected bill or emergency expense.
How do you get one?
- Call your bank and ask to borrow the money from them.
- Take out a secured or unsecured borrowing from a friend, family member, etc.
- Go to the local credit union
- Use a pawnshop to loan you money
- Get an unsecured bank loan
- Use a payday loans service to receive it fast, that charges expensive fees.
- Use a Cash Advance Lender
A payday loan by phone, also called a payday advance or an online payday loan, is a small, unsecured, short-term cash loan that is typically due on your next payroll or pay date. There are many companies ready to provide this service over the phone. They will send you money very quickly and you can get away with a one-time faxed signature. Payday loans by phone are available in some states where direct payday loans online are not allowed. States that have laws restricting direct payday loans tend to welcome payday loans by phone.
A pay day loan online is on par with a postdated check. If you were to cash a $500 postdated check, you might receive $400 in cash and a $100 check for the loan fee. That would be a 667% APR, which isn’t illegal in most states. Most consumers know what an APR is, but they don’t quite comply with it when taking out a payday loan online. Payday loans by phone gives you more time to pay back your debt than your standard postdated check transaction, so you’ll likely end up paying less interest.
What are the requirements for Payday Loans by Phone?
When applying for a payday loan by phone, you need to meet a few requirements. The qualifications for a payday loan are similar to any other form of credit that you use, like a credit card or checking account. Some lenders may also require either a recent pay stub to verify your income or access to your bank account. If you do not already have an existing service with the lender, you can still qualify for a payday loan by phone, but the loan process will be slightly different. You will need to provide two forms of identification, such as a state-issued ID and another form of identification like a piece of mail or utility bill that confirms your address.
Most people tend to have a checking account, but not all lenders require you to have one in order to get a payday loan online. Downloading the application is easy and most lenders will accept faxed or online versions of your application. You will have the option to select which verification method works best for you and the lender won’t require more than one item when qualifying for the loan.
Can you take out a loan over the phone?
Yes. A payday lender will qualify you by requesting personal information such as:
- Your full name.
- Date of birth.
- Social Security number.
- Current and previous addresses.
- Cell phone number.
- Place of employment.
- Source of income.
In some cases a lender will request to speak with your employer or credit card issuer for verification. Your payday lender will run a hard inquiry into your credit history when you apply for the loan. If this is at all inconvenient for you, find a lender that offers a preliminary loan that you can pay back if it meets your needs and conditions.
You will have the option of paying it back with your next paycheck. Some lenders even have options available that allow you to repay the loan early without late-payment fees or penalty pricing. At the completion of the application process, you usually must input your bank account information to confirm your deposit method when funding a payday loan online. These are called direct deposit pay day loans because you get your money straight from your bank account.
In most cases, the lender offers direct deposit so they know people can repay their debt on time or they wouldn’t offer this service. The lenders may not require this same verification for a payday loan by phone, but they tend to go by the same rules as your bank account provider.
The funding is almost instantaneous when applying for a payday loan by fax if you use paper checks and electronic payments are made through ACH transfers to the lenders banking institution.
Most lenders have offices staffed with representatives ready to help you process any questions at any time during business hours in their local time zone. You can call them at a time that fits best into your workday or even access them after hours if you need assistance after normal business hours.
Borrowers also have access to real-time balance inquiries via telephone, text message and email 24 hours a day 7 days a week to ensure that they keep track of their finances at all times.