Payday Installment Loan

By Valencia Higuera

  • Overview

    There are different ways to meet an emergency expense. You could use money from your personal savings, use a credit card or borrow money from family or friends. But, what do you do if these options aren't available to you? Fortunately, online and local loan companies are prepared to offer you a short-term cash loan. Payday installment loans feature simple requirements; and once you're approved, loan companies deposit the money into your account by the next business day.
    Payday Installment Loan
    • Step 1

      Understand how payday loans work. Payday installment loans differ from traditional bank loans. These loans feature high interest rates and short-term. Funds are due within two weeks, or by your next pay period. And failing to repay the loan results in additional fees and interest.
    • Step 2

      Maintain an active bank account. To qualify for a payday installment loan, you'll need to open and maintain a savings or checking account. Unlike traditional bank loans, payday loan companies don't issue checks. This is an electronic business. The loan company approves your application, and they automatically deposit the funds into your account. Likewise, the loan company automatically withdraws the payment, plus interest, on the due date.

    • Step 3

      Make copies of your driver's license and paycheck stub. Payday installment loans don't involve credit checks or collateral. Still, loan companies request personal and employer information. Not everyone qualifies for a loan. Applicants must be a U.S citizen, at least 18 years old and earn at least $1,000 a month. To determine whether an applicant qualifies for a quick installment loan, loan companies ask for copies of driver's licenses and most recent paycheck stubs.
    • Step 4

      Maintain steady employment. Being employed isn't enough to obtain a payday installment loan. These loan companies service individuals with steady employment and reliable income. Maintain the same employer for at least 90 days, and document all types of income such as unemployment compensation, alimony, child support and disability insurance.
    • Step 5

      Research different payday loan companies. Loan companies vary. And if you're looking for a cheap payday loan, shop around. The typical loan fee is $10 to $20 per every $100 borrowed. Contact several loan companies and inquire about their rates and terms. Payday installment loans generally feature two-week terms. However, you can extend the loan term and repay the loan in 30 days.
    • Step 6

      Complete your application. After choosing a payday installment loan company, thoroughly complete and submit your application. Gather the necessary documentations, and include this information with your application.
    • Skill: Moderate
    • Ingredients:
    • Bank account
    • Driver's license
    • Paycheck stub

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