The First-Time Borrower's Guide To Payday Loan Terms
If you haven't applied for a payday loan before, the payday loan terms might confuse you. The financial world is filled with jargon and hard-to-understand contracts and documents. But there's no need to get overwhelmed. In the next few sections, we will cover the payday loan terminology you need to know before getting this type of loan to cover your emergency.
Important Payday Loan Terms
Before diving straight into the terms, we will quickly define payday loans. That way, we're all on the same page before we get into how to get through the payday loan process. A payday loan is a type of loan taken out over a short period, originally designed to bridge the financial gap between pay periods. At Idaho Title Loans, Inc., we make sure that it's quick to get, allowing you to cover time-sensitive emergencies with ease.
And the best part is that you don't need a good credit score to find out if you qualify! We accept people from all walks of monetary life, ensuring many people get the cash they need to put their life back on track. So, now you know the definition, it's time to look at the common terminology associated with it.
1. Payday Loan Lender
You will come across this one almost immediately upon researching payday loans. They are providers of payday loans that conduct their processes online. With such lenders, the loan requests are completed online or over the phone, and the money is provided via a direct deposit. Idaho Title Loans, Inc. is a payday loan lender.
2. Secured vs. Unsecured Loan
Secured loans are loans where you provide collateral to secure the money. While you can borrow larger amounts, you need to own something of value, such as a vehicle, property, stocks, and so on. Unsecured loans, on the other hand, do not require you to put anything up as collateral. Instead, approval is based on your creditworthiness or your ability to pay off the loan on time.
Payday loans are unsecured loans because your approval is based according to your proof of income. While you could get more cash from other loans, this loan would be good for smaller emergencies that need your attention right away and will only get worse over time. So, this loan can be an option for people who have a low credit score or do not have any property they can use as collateral.
3. Proof Of Income
The payday lender will usually ask for some form of proof of income in order to apply for the payday loan. This is usually in the form of your most recent pay stub from your employer. If you are self-employed, you can
4. Direct Lender
If the lender is a direct lender, they provide you loan money without using a middleman. You apply directly to them, and they help you without outside involvement. Idaho Title Loans, Inc. is a direct lender. This can be preferred because you know exactly the company you are dealing with and are not passed off to another entity.
5. Proof of Identity
When you apply for a loan, it it necessary to provide proof of where you reside and that you are over the age of 18 years old. This is to ensure the safety and security of customers and the loan process.
6. ACH Authorization
ACH authorization, otherwise known as an Automated Clearing House authorization, gives the lender permission to take funds from your bank, prepaid card, or credit union when repayment is due.
Now That You Know Payday Loan Terminology, You Can Start Your Request!
The payday loan terms explained in this article will help you navigate the sometimes-confusing loan world. But if you have any questions, don't hesitate to get in touch with us at Idaho Title Loans, Inc.
Our payday loans allow you to borrow up to $500 to fund emergencies. So, if you're dealing with a time-sensitive situation, complete our online inquiry form to get started now!
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.