Payday Loans Explained: Payday Loans Meaning and Terms To Learn
Payday loan meanings are only straightforward to a point. While the definition starts off simple, your terms and conditions start to throw in vocabulary that stumps the smartest in their application and offer processes.
In this article, we dig a bit deeper into what a payday loan is and some alternative names for the same product. We also highlight the most common terms you will come across and provide you with more payday loans meaning.
Payday Loans Meaning And Definition
Payday loans are short-term loan options, usually repaid by the borrower’s next paycheck. To understand the terms of the loan, borrowers should understand basic loan language, as well as words specific to the application process, loan agreement, and potential issues.
A payday loans meaning derives from its small loan amount and short repayment period. You may also see them listed as:
- Cash advance loans
- Check advance loans
- Postdated loan
- Salary loans
- Payroll loans
- Payday installment loan
While this payday loans definition seems simple, it leaves plenty of room for interpretation and other details to come into play. Understanding the language involved in the lending process will help you understand what you’re getting to and come to a fair agreement.
Basic Payday Loan Terminology To Know
Several basic loan terms show up when you’re looking at payday loans. These are offered as a way to borrow without collateral, meaning that you don’t offer up property in exchange for the loan. This also means you do not need to go without your property until the loan is repaid.
Payday loans do mean that you accumulate debt, which is money owed, but this goes away once you pay off the loan.
Direct payday lenders are people or businesses that offer loans directly to their borrower, while others must deal with other organizations, banks, and businesses before approving and distributing the funds.
Regardless of where you get your payday loan, your lender will list a maximum loan amount so you don’t waste time applying when you cannot get the funds that you need. Most lenders also have a minimum loan amount that refers to the smallest amount you can borrow.
Terms Related To Your Application
When you apply for a payday loan you need to provide:
- Proof of income: usually pay stubs, but some lenders allow you to use reward letters or tax documents from the previous year to prove your income
- Proof of identity/residency: lenders need government-issued photographic ID to prove your identity and sometimes your residency
- Verification of employment: Lenders may need further verification of your employment, especially if you’re starting a new job. Beyond pay stubs, this may be a letter from your employer.
Applications are generally straightforward, and your lender should be more than happy to provide any assistance you need.
Terms Related To The Loan Agreement
Your loan agreement includes all the information that you need to understand what your situation is. It lists all the details tied up in your payday loans meaning.
This often includes interest, which is part of your loan fees. Your loan fees refer to anything outside of principle (the initial amount of the loan) such as processing fees, and they help cover costs for your lender.
Your loan agreement should also let you know whether you will receive your funds through cash, check, or, most likely, a direct deposit of the funds into your checking account.
Terms Related To Repayment
Some payday loans use a deferred deposit or a postdated check for repayment. These are agreed upon beforehand, and they are dated for future payment. Your lender cannot deposit them until that time.
Alternatively, you can approve an automatic electronic transfer of the funds out of your account on your maturity date, or the day that your loan payment is due.
While most payday loans operate on a single repayment, some use long-term payday loan installments to make it easier on the borrower to repay. These split up your repayment into several smaller payments over an extended period.
Apply For Payday Loans At Nevada Title And Payday Loans, Inc.
We’re happy to discuss any questions you may have at Nevada Title and Payday Loans, Inc. regarding payday loans meaning or any other issues you may have.
Our loan process takes mere minutes from your day, and you should receive a call back the same business day to gather more information and move forward with your payday loan.
After completing our quick and simple loan process, we’ll help you find the nearest location so we can go over all your qualifying documents and finish your approval process. If approved, you can have as much as $500 ready for you the same or next business day.
Get Your Payday Loan Today!
Payday loans have plenty of terms to understand, but we’re more than ready to help you understand everything expected during the application process.
Start online and finish in-store today to get access to quick cash for your emergency expenses.Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.