A payday is one of the most affordable ways to get cash fast. However, just like any other type of loan, some conditions must be met to qualify for payday loan advances. Before you even apply for an emergency loan, you must check the minimum requirements to determine your eligibility. Commonly, most lenders will require you:
- Being at least 18 years old
- Having a valid identification
- Having a stable source of income
- Having an active bank account
All you have to do is fill out an online application and provide truthful information. You should realize that it's a type of loan that will be taken out in a virtual world before you ever have to use it in real life. So your personal information is needed to determine whether or not you qualify for a payday loan. After your online loan request is approved, you will get a credit offer from one of the lenders available on our platform. You need to pay the loan amount back right away, typically until your next paycheck arrives.
How do Payday Loans Work?
It's very easy to get into situations where you spend more than you can afford. This could easily turn into a bigger problem than it already is. So you must be able to take a reasonable amount of funds and pay them off typically in two to four weeks. If you need to raise money quickly to cover your bills, this is a great option. Not only does it save you time and money but it also gives you the freedom to choose your own lifestyle.
What Happens When you don't Pay Your Loan?
Missed payments have two phases: delinquency and default. Delinquency means that your payment is overdue, and your information may be sent to a reporting agency that is most likely to affect your credit. The number of days you have until you enter default varies but what default means is that the lender figures out that you don't plan to pay your debt back. They may sell your debt to a collection agency that will intensively try to get the money from you. The consequences for delinquency and default also vary depending on the type of loan you have.
Late payments, delinquencies, and defaults will stay on your credit report for seven years. Lenders may focus on recent records, but an actual default will always be a red flag so that future borrowing will be very expensive or sometimes even impossible. If you have any sort of credit, take some time now to learn what options you have. If you anticipate money problems, consider contacting your lender to negotiate new payment terms. Make sure to do it before having your loan due. You may get offered a credit rollover, taking out a new loan to pay off the old one. In theory, it sounds like a perfect option to find the way out. However, in most cases, it comes to predate on borrowers and lead them to a never-ending debt cycle.
As a result of changes CFPB has made, from July 2020 the lenders don't have to check if the borrower is able to repay the loan.
Thus, we encourage you to be careful and make sure you can afford the loan before applying.
Regulations of Payday Loans in Rhode Island
|Annual Percentage Rate (APR)
|Minimum Loan Amount
|Maximum Loan Amount
|Minimum Loan Term
|| 13 days
|Maximum Loan Term
|Number of Rollovers Allowed
|| 10% of the amount advanced
[ Updated on 30-Aug-2021, 02:12 ]