Payday Advance Process
Payday advance lenders have simplified the process of obtaining loans though online
transactions. When you request a payday
advance from Purple Payday Loans, we will submit your application to our
network of lenders and get you the cash you need fast. You’ll know in seconds if
you’re approved and for how much.
- Our 2-minute advance application is fast and easy to complete.
- Bad credit is never an issue. We specialize in bad credit advances!
- You’ll know in seconds if you’ve been approved, for how much, and what the fees
A payday advance, also known as a payday loan or a cash advance, is a short
term loan administered by a lending company rather than a bank. The intent of this
loan is to provide funds for the borrower to use until he or she receives his or
her next paycheck. Consequently, the amounts of these loans are usually the size
of one or two weeks’ wages.
When a borrower comes to a payday lender, the latter will ask for identification
and further proof of income. This may simply mean a paycheck stub or some sort of
bank statement or other document which demonstrates the regularity of the borrower’s
income. Since the laws in each state vary, some lenders may ask for more or less
proof of income. Some operators may investigate a borrower’s credit history.
Once the lender is satisfied by the borrower’s proof of income, then the two agree
on an amount to be borrowed. This will usually be an amount that the borrower’s
next paycheck will completely cover. The borrower then writes a check that would
satisfy the loan as well as various fees for that loan. He or she postdates the
check and leaves it with the lender, who holds on to it.
On the maturity date of the loan, the lender expects the borrower to return to the
lender’s location and pay the loan. If this does not occur by the agreed-upon time,
the lender will take the check to a bank and cash it. If the borrower’s bank account
does not actually have sufficient funds to cover the check, then the payday advance
office will charge additional fees to the borrower. The latter may suffer additional
charges or a higher interest rate the next time he or she seeks a payday advance
with the same lender.
Payday lenders have altered this process with the development of the Internet. It
is now possible to perform much, if not all, of this transaction online. The lender
can verify identification and proof of income electronically. Then the lender can
deposit funds directly into the borrower’s bank account. When the loan maturity
date arrives, the extraction of funds from that bank account occurs automatically
at the set time of day.
Some mainstream banks have begun a similar program with borrowers who have direct
deposit through their employers. Via text message, they can request a form of virtual
credit. The borrower pays back the loan just as he or she would pay a payday advance