Debit card payday loans have become more accessible and easy to obtain. The payday loan industry in the USA has reached almost $30-billion, with over 12 million borrowers taking out payday loans each year. Processing personal loans and payday advances can take as little as 24-hours, and coupled minimal document requirements means it has become more popular. If you only have a prepaid debit card, you can still probably get a payday loan. Just as you can get a personal loan using bad credit, you can also get one with only a prepaid debit card. Recent studies point towards a 71% rate of card users reported as having only one debit card. That can be compared to 40% of respondents only having a credit card. The Recession has fuelled the demand and popularity of debit cards.
With more people choosing to minimise their debts, it makes good sense to switch to debit accounts and debit cards. This has also given rise to prepaid debit cards, and debit card payday loans. With over 75% of the US population switching to debit cards, the payday lending sector saw an opportunity and new niche in the market opening up. They have since started offering debit card payday loan services to borrowers who don’t even have a traditional bank account.
So what precisely is the difference between a credit and prepaid debit card? During 2016, there were over 450 million credit cards in circulation compared to 470 million Visa debit cards in 2015. Add to that another 180 million MasterCard debit cards, and you can see the difference. Consumers are placing more emphasis and expressing a tangible preference for debit accounts and debit cards. This also tells you that you can get a debit card payday loan even without a credit check, a current or savings account. In effect, it is actually easier to get such a loan than if you don’t have a bank account.
Not all lending institutions offer such services to potential borrowers who use prepaid debit cards. Of course, you will still need to do your own research and due diligence before committing yourself, to an instant approval payday loan; nevertheless, the options are vast at present. Such lenders do exist, and they are ready to help and assist borrowers if they are feeling the pinch! You should contact as many as possible to be able to compare offers and rates. That way, you ensure you find the optimum deal with the lowest interest rates and best repayment conditions.
What exactly is a debit card payday loan? Payday loans are sometimes referred to as cash advance loans, or fast cash loans, and even instant loans. They are in effect, short term loans with bad credit which guarantee approval. These types of loans absolutely have to be paid on the day you receive your next salary paycheck. Of course, the terms will be different for each lender, and the repayment date is generally within two weeks that it is issued. Qualified borrowers get immediate access to fast cash, sometimes within just 24 hours, or more
typically the next business day.
Anyone who satisfies the criteria is eligible to apply for a debit card payday loan. So if you are in dire straits, as long as you have a stable and proven means of income, and are of legal age, then you meet the criteria. Another condition is that you have some kind of financial account. Traditionally, that meant having a current account, savings account, or debit account. Today, all you really need is a prepaid debit card, and lenders will likely extend the services to you.
The sum of money you can borrow will vary according to your personal financial situation. Other factors such as location, and your annual income, and most debit card payday loans range from $100 to as much as $1,000. In certain circumstances, you may even be able to borrow a bit more than that. Emergencies can happen unexpectedly to anyone, anytime, and these situations usually result in unexpected costs and expenditure. Expenses may crop up, and you probably won’t have enough money saved up to deal with it. It could be an illness in your family that requires urgent expenses. Perhaps medical care, hospital fees, or after-medication are urgently needed. Maybe a typhoon or hurricane that has caused harm to your home which needs to be repaired urgently, without delay. A debit card payday loan can solve this unforeseen financial crisis in an instant. The loan can provide you with a financial cushion to soften the blow! Whatever your case, a payday loan will help you get through that depressing short-term financial hardship. The key is to limit your short-term expenses so you won’t get in over your head.
There are several benefits and advantages of using debit card payday loans compared to traditional loans. It takes forever to apply for a loan at a bank or lending institution. You will be asked for mountains of documentation and endless requirements such as proof of your identity, along with proof of your income over the last few years, and banking statements. It will take you weeks or months to get your application approved, if at all! Worse still, after you would have spent considerable time chasing them up, and getting stressed with your bank, they give you the bad news that your loan has actually been refused after all! Since you didn’t make the cut and the lender won’t issue your loan. With payday loans, you really should fish around and look for the optimum deal. In the long run, you will be much happier that you saved money on interest and costs. It is absolutely critical that you select the right lender, as that will give you a better chance of approval. Another benefit is that you receive a definite yes, or no within 24-hours max. No waiting around for months, only to be finally refused! The minimal requirements, documents, and conditions often lead to a better choice. These loan types specifically cater to individuals who cannot usually get their hands on traditional loans. You have a realistic chance of getting your application approved even with bad credit, no bank account, and no credit cards.
Compared to interest rates charged by most traditional banks and lending institutions, payday lenders do charge marginally higher. The repayment term is much shorter as well, and you only have a couple of weeks to repay the principal and interest. You really have to pay careful attention to the conditions, terms, repayment system and all the loan terms before signing up. That will help you not to have issues with repaying the debit card payday loan. You can use that loan cash for virtually anything once you have the loan in hand. You have to pay attention and approach the loan with greater care than a traditional loan to avoid making higher payments, which accumulate the longer your payment terms are extended.
You will need to look very carefully for the best debit card payday loan, regarding the interest rates, loan amount, and flexibility of your payments. Today, you can find such lenders online, as well as physical brick and mortar debit card payday loan outlets, cheque cashing centres, and even pawn shops! However, the most convenient is the multiple loan offerings on the web, where the application process is entirely online. Make sure to check that the lender is properly licensed, and legally allowed to offer such services, especially since federal protective laws for consumers are now firmly in place.
The Department of Defense even regulates payday loan lending institutions now, and if you are a member of the armed service or a family of one, then make sure the lender doesn’t overcharge you and compel you to pay over the regulated rate of 36% interest. After you have completed all the necessary requirements, your debit card payday loan lender will have to verify all the information you provided, and most lenders won’t even perform a credit check, and let you know straight away if you have qualified for the payday loan. If you submit the correct details and follow all the requirements, you will most probably get good news about your payday loan soon, with your prepaid debit card loan application. In that case, before you accept the payday loan, make sure you receive the funds directly to your debit card, and also make sure you have read everything contained in the contract beforehand. That will clearly explain the intricacies, terms and conditions of your payday loan, including the interest rates, all the financial charges, any late fees, and other penalties. If there is something you do not fully comprehend, do not hesitate to put everything on hold until you get clarification from the lender. You should know precisely what you are getting yourself into, to avoid nasty shocks later. Remember that any kind of legal contract is binding, so ask if you aren’t sure. Any reputable and trustworthy debit card payday lending institution should always answer your inquiries and questions totally honestly.
