How Do Online Payday Loans Work?

If you need a quickly accessible, short-term cash advance, then you may be wondering, “how do online payday loans work?” For many borrowers, online loan services can take the hassle out of applying for and obtaining a loan.

At Lending Bear, we provide an online payday loan fast-app form to ensure a quick, easy, and accessible loan application process. In this guide, we break down how applying for a payday loan online works.

What is an Online Payday Loan Application?

An online payday loan application allows borrowers to enter their information and apply for a cash advance entirely online. You’ll typically enter the same information you would give at an in-store location, only you’ll use a secure form on their website to apply. Many borrowers can benefit from this process if they don’t have an in-store location nearby or have the time or transportation ability to access the store.

Who Offers Online Payday Loan Applications?

When applying for a payday loan online, you’ll need to first research lenders and decide which company you’ll want to work with. Of course, you’ll want to visit their website and make sure they offer an online application option.

Most state-licensed direct lenders operate within a similar range of term fees. Some lenders may offer up to $500 in a payday loan, while others may offer $1000 or more depending on state law. The average rate of interest for this kind of loan ranges from $10-$30 per $100 borrowed, so look for a lender within this range.

What is the Process of Applying Online?

Typically, when applying online for a payday loan, you’ll start by visiting the website’s application section and filling in basic information like your name, email address, and what state you live in. Different states have different lending laws, so your lender must know where you reside to offer legal terms.

Once you fill out this basic information, you’ll move to fill out a more in-depth form that will usually require your social security number, birth date, ID number, phone number, address, bank information, income, employment information, and requested loan amount and reason for application.

How Do Online Payday Loans Work in Terms of Information Security?

When applying online, you’ll be providing several sensitive pieces of your personal information. Therefore, it’s critical that the lender you work with provides secure forms and is a highly reputable company.

At Lending Bear, we are a state-licensed direct lender with an A+ Better Business Bureau rating. Our database is protected with strict access permissions and password protections. We employ SSL encryption on our website to protect communications between your browser and our website, use industry-leading antivirus technology, and maintain rigorous firewall protections.

How Do Online Payday Loans Work in Terms of Approval Speed?

Payday loans can be a good choice for a borrower who needs fast access to cash. Once approved, some direct lenders can provide the loan on the same day of your application. At Lending Bear, you may be approved and access your cash on the same day as your online application.

What are the Qualifications?

To pre-qualify for a payday loan, a borrower will need to be at least 18 years old, and provide proof of employment, income, and identity verification. You typically don’t need to have good credit. At Lending Bear, we offer our short-term payday loans to borrowers with bad credit and understand that borrowers building up their credit score may need loan assistance from time to time.

What is the Maximum Amount I can Recieve from an Online Payday Loan?

The amount that a lender will provide typically is based on your income, and the maximum amount that can be provided also varies by state law. So, in Alabama, Florida, and Tennessee, the maximum amount that can be issued for one payday loan is $500, while in Louisiana the limit is $350.

Apply Online for a Payday Loan with Lending Bear

At Lending Bear, we’ve streamlined our payday loan application process with our fast, easy, and efficient online application. Our website is secured, encrypted, and highly protected, so you can rest assured that your information is safe. If you’ve been wondering “how do online payday loans work?”, and are interested in a short-term cash advance, then contact us today.