Our Guide to Understanding the Process of Payday Loans – From Application to Approval

November 07, 2019

There will be times in your adult life when you may have an urgent need for money that you don’t have. You may have to deal with unexpected home repairs, sudden unemployment, or even a family member falling ill. Payday loans can help you get out of such situations. 

Payday loans promise a fast and convenient application process. Releasing funds is also very easy. The downside of all these benefits is that payday loans can be astoundingly costly. Despite this, many people still opt to avail of payday loans because it’s an excellent way to rise above their financial issues quickly. If you’re looking into a payday loan today, it is crucial to familiarise yourself with the process before you hit that submit button. 

Keep reading to learn more about the process of payday loans!

The  Payday Loan Process

It takes less than five minutes to apply for a payday loan. Since the whole process takes place online, you won’t even need to leave the house! Most lenders only need a few minutes to decide whether or not to approve your loan. Once approved, your funds can be transferred within an hour. When you think about it, it would take you longer to finish that movie than to get the cash you need! 

Most lenders only need a few documents, such as your proof of income and your bank details. Regardless of what you need the money for, it’s reassuring to know that you can have it this quickly. 

Looking For a Trustworthy Lender

You’re probably on the lookout for a lender that will offer you the most appealing and inexpensive deal. It’s worth noting that payday lenders are widespread in neighbourhoods where most residents don’t qualify for other kinds of long-term loans. 

Despite their convenience, one should be warry when applying for short-term loans. You may not be borrowing a substantial amount of cash, but there are still risks involved. Choose a direct lender that is responsible and trustworthy. 

Here are a few things to pay attention to when seeking a trustworthy lender:

Their website

When choosing a lender to work with, the first thing you need to do is go through the website of each prospect. Make sure they boldly state that they’re a direct lender and not a broker. Additionally, read the company’s policies and check if they are transparent with their information. Their site should contain their fair advertisement policy and complaint procedure. Lastly, see if they posted a valid address and contact number. Before applying, it’s wise to give them a call.

The website should look trustworthy and professional. This means there shouldn’t be annoying cookies popping up to direct you to elsewhere. If you suspect an illegal moneylender, report them to the government immediately. 

Their reputation

Additionally, check the lending company’s track record. You could do this by reading credible reviews. Most firms would state if they have certifications or other merits. These not only add to their recognition but also prove that they are following a professional set of rules and guidelines. 

When you need cash fast, and your next paycheck is weeks away, payday loans could save the day. However, don’t be too quick to jump in. It’s smart to understand the exact finance charges you will be paying to avoid being ripped off. Remember—it’s not just about taking a loan out. It’s also about paying it back!

If you’re in South Africa and would like to take out a payday loan, feel free to contact Hoopla Loans today to see what we can do for you!