Monday, November 28, 2011

The Online Loan Approval: Answering Your Questions

By Andrea Williams

Borrowing online today, and most particularly what's known as payday style cash advances online for people with credit problems only continues to become more popular. It's the option that more people are taking, and there are several reasons for this. For certain one of them is raising inflation that has made it more difficult to make it from check to check. Then again the ease with which it's done has also contributed to its popularity.

Even so a certain level of confusion remains with regards to the particulars involved in the application process. For instance to begin with, rules vary from state to state if you live in the US, and in fact a total of six states in the US now ban them all together. Also a lot of the information that's put out there online tends to be contradictory, and confusing. So do keep on reading, and hopefully some of this confusion can be eliminated.

For example one common area of misunderstanding is whether or not you need a checking account to secure a payday loan. The answer here is no. Now while some sites do require that you have a checking account, still yet others will validate your application if you only have a savings account. Then again another new trend that's emerged recently is sites that will in fact wire you the money if you have no bank account at all.

Then another common question people will ask is whether or not they need to have a job in order to qualify. After all they are called payday loans, and order to have a payday it only stands to reason that you must have a job. The simple answer here though, is "no you don't need to have a job" because most sites only require that you have a verifiable source of income. As a matter of fact most sites will lend to you even if you're unemployed, and drawing off an unemployment insurance claim.

Then one more common are of misunderstanding, is the amount of money that you can borrow from a payday type online lending site. Now the problem here, is that the rules and laws continue to change, so in spite of the fact that much of the information out there would have you believe that you can borrow up to $1500, it just isn't so now. Yes some sites will lend you that much but in some states now there are laws that limit you to borrowing only $500 at one time.

Then lastly if you live in the wrong states in the US you don't even need to worry about the application process for payday loans. This because right now a total of six of them have banned them completely. That's both online, and off-line fast cash advance lending franchises. Also an increasing number of states also have a limit as to how many times you can borrow per year, with some, believe it or not, only allowing you four loans.

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