A payday loan is great when you can’t borrow money from a friend, a bank, or another financial organization. Usually, a loan comes in exchange for repaying the principal capital plus interest. The capital is the amount you borrowed, while the interest is the fee you paid to get the loan. Because lenders are taking a risk that you will not repay the loan, they must compensate for this risk by collecting interest. Typically, loans are secured or unsecured.

A loan is considered secured when an asset (like a car, boat, or house) is kept as collateral. The lender seizes the asset if the borrower defaults or fails to repay the debt. A payday loan is an unsecured loan, and if the borrower fails to repay the unsecured loan, the lender is not entitled to any compensation. To get instant payday loans online guaranteed approval, you can apply using the Slick Cash Loan app.

Instant payday loans

A payday loan is a high-interest, short-term loan for a small sum — usually $500 or less — intended to be repaid with the borrower’s next paycheck. Payday loans are typically given to persons with bad or no credit and merely demand proof of identification, income, and a bank account.

Alternative financing options are recommended instead of payday loans, especially if there’s a danger the borrower won’t be able to return the amount quickly. Payday loans are the most expensive way to obtain money due to their exorbitant interest rates. Some states regulate how much payday lenders can hand out as payday loans and the interest rates they can charge, while others, such as New York, outright prohibit payday lending.

Lenders typically get past rules in jurisdictions where the activity is prohibited by cooperating with banks in other states. Despite the fact that business models and legislation limit the amount and duration of payday loans, they are still an expensive option that should be approached with caution.

How do payday loans work?

A payday lender will verify your income and bank account information and give cash on the spot in a store or as soon as the same day if the transaction is completed online.

The lender will need a signed check or permission to electronically withdraw funds from your bank account in exchange. The loan is due the day after your next payday, usually two weeks, but it can be one month.

If the loan was obtained at a store, you may repay the loan early or on the due date as they would keep some type of collateral from you. If one fails to appear, the lender will write a check or make a withdrawal for the amount of the loan plus interest. Online lenders usually use an electronic withdrawal.

What do I need to get a payday loan?

A payday loan will typically require an active bank account, identification, and evidence of income, such as a pay stub. One must be at least 18 years old to participate, and some lenders also require a Social Security number.

Despite having income and a bank account, you may still be denied a payday loan if you apply for it using conventional ways. Slick Cash loan offers guaranteed approval. Lenders who provide more than 36% APRs aren’t allowed to lend to active-duty military personnel, spouses, or dependents.

In as little as 15 minutes, the loan might be granted. In most cases, the borrower sends a check for the loan amount plus a lending fee, which the lender holds until a predetermined due date.

The majority of payday loans are only for a few weeks. When the loan is due, the borrower can either pay it off or allow the lender to cash the post-dated check or make another withdrawal from their account.

If the sum is minimal and you match the criteria, you will always be approved online for an instant payday loan. Payday loans take place both online and offline. If you want to apply for one online and get guaranteed approval, use the Slick Cash Loan app online.