Types of Payday Loans
The term “payday loan” sounds like it refers only to one specific type of loan, but in reality, it’s an umbrella term for different kinds of loans. The terms of these loans may be similar, but lenders recently have started offering a variety of loans that are aimed at different types of customers. What kinds of payday loans are out there? Take a look:
- Military: Loans for those people serving in the military are now available. For people serving in the armed forces that face unexpected financial challenges or have special needs, there are lenders who offer loans for women and men who serve their country. When providing all the required information to the lender, if you are in the military, you should let them know so that they can take it into consideration.
- Online: For people who prefer the privacy and convenience of the Internet, they can now go online to get emergency funds. Money Mutual is a resource where people can connect with a lender for free online. While not a lender or a loan broker, Money Mutual is a marketplace that provides borrowers access to a diverse group of lenders who can help people find cash quickly. If you use Money Mutual and a lender decides to work with you, up to $2,500 could be deposited in as little as 24 hours.
- No Fax: No fax – or faxless payday loans mean that you could provide all the required information on the web without having to deal with the complications and cost of faxing paperwork or filling out an extended application by hand, helping to make the process quicker and more private.
- Good Credit Not Required: Many people’s credit scores have been ruined by the economy over the past few years, and that’s where payday loans come in. Because consumers have been turned down by their credit union or bank, they need options when an emergency happens. Many lenders who offer this kind of loan understand that bad credit is not always the borrower’s fault.
- “24 Hour Payday Loans”: Most lenders that advertise 24-hour payday loans are marketing loans that could be deposited into a borrower’s bank account as quickly as 24 hours after an approved offer. For the most part, these loans are available on the web, meaning that if a person has all the requirements at the time of application – including proof of regular income, bank account information, and more – the process can be fast.
“ lenders recently have started offering a variety of loans ”
People who are looking for a payday loan should always be aware of offers that seem too good to be true. Many scam artists have appeared online offering “1-hour payday loans,” leading people into thinking they could get a payday loan in one hour. In reality borrowers cannot get a loan in 1 hour. But, going online can be a fast process. When people use Money Mutual’s free marketplace, the process of providing information and finding a lender can take just minutes. If you’re approved by a lender and accept a loan offer, money could be deposited into your bank account in as quickly as 24 hours – similar to depositing your paycheck at the bank.
As you can see, there are many different types of payday loans out there. The key with any payday loan online is to understand all of the terms and conditions of the loan before you accept an offer. All payday loan lenders, regardless of the type of loan, are required by law to tell you all the terms of the loan, including how much you will pay in finance charges and fees. Take the time to read over them carefully before you accept. Remember: always borrow responsibly.