If you’re in the middle of a financial emergency, e-transfer payday loans may be what you need. It’s a short-term, unsecured loan through which you can access the funds you need in just a matter of hours.
Whether your income is from government benefits or employment, you have to repay payday loans on or before your next payday (hence the name). The good thing about this type of loan is that they’re available online 24/7. You can apply for one from the comfort of your home and receive the loaned amount online.
Read on to learn more about e-transfer payday loans and how to secure yourself of one if you need some fast cash.
How Do E-Transfer Payday Loans Work?
Borrowers have to visit the lender’s website and fill out an online registration form. Primary documentation requirements include your identification, bank account number, and recent payslip.
If approved, borrowers receive cash via money transfer. Loan amounts vary depending on your state or country’s law but can be up to a thousand dollars.
Borrowers have to pay the loaned amount back after two weeks or on their next payday. They can give the e-transfer payday lender electronic access to their bank accounts or post-date a personal check, making sure it coincides with their next paycheck. Other repayment methods may be available depending on the lender.
Indeed, e-transfer payday loans in Canada, the US, and other parts of the world are a real quick-fix solution that consumers can opt for in a financial crisis.
Fast, Secure, And Easy
To make the processing of payday loans more straightforward and quicker, e-transfer payday loans were introduced. You’ll get the money in minutes after the approval of your loan application.
E-transfer—sometimes called an email money transfer (EMT)—is a convenient and fast way of sending money directly from one bank to another. Using EMT, you can get your loaned amount transmitted to your bank account even without sharing confidential financial information. You only need to access online or mobile banking through a trusted financial institution, and you’ll have the ability to receive or send money through a mobile number or email address.
One thing that makes e-transfer payday loans a good option for borrowers is that lenders don’t restrict how you use the money. It can be used to pay for unexpected emergencies or pay your monthly bills. Some people even opt for payday loans to pay for their expenses when visiting their next tropical vacation destination. You can take care of whatever you need!
The Nitty Gritty
Laws And Rules
The Consumer Financial Protection Bureau (CFPB) implements and enforces federal regulations, like the Payday Rule. They impose strict restrictions on both storefront and online payday lenders.
The law limits rollovers and the number of times a bank account can be debited. It also requires payday loan offerings to undergo an affordability test. Payday lenders should disclose how much the finance charge will be and the corresponding annual percentage rate as required by the Truth in Lending Act.
Payday lenders, both those that offer instant loans online or in a storefront, have to abide by both state and federal laws.
Loan Amounts
As already mentioned, most states or countries have laws establishing maximum amounts for payday loans. The qualifying policy of the payday lender and your net income also largely influence how much you can borrow. Loan amounts vary and can be from $50 to $1,000. There may also be limitations in your state or country when it comes to having multiple outstanding payday loans.
Calculating Interest Rates
Lenders calculate the annual percentage rate (APR) for loans by dividing the interest amount paid by the borrowed amount. The result will be multiplied by 365, divided by the repayment term length, and multiplied by 100.
So, if you have a $375 loan, the APR calculations in mathematical terms will look like this:
56.25 ÷ 375 = 0.15
0.15 x 365 = 54.75
54.75 ÷ 14 = 3.91
3.91 x 100 = 391%
If the rate is 20% per $100 borrowed and you’ve loaned $375, the annual percentage rate calculator will look like this:
75 ÷ 375 = 0.2
0.2 x 365 = 73
73 ÷ 14 = 5.21
5.21 x 100 = 521%
Eligibility
Generally, a consumer will not be eligible for a payday loan for several reasons, including if they:
- Are at least 18 years old
- Are in default on another loan
- Have already taken eight loans out in the last twelve months
- Have an existing installment plan to pay off a previous payday loan
- Have an outstanding loan equal to 30% of their gross monthly income or totaling $700 (whichever is less)
Keep in mind that all of these eligibility restrictions may vary depending on your state or country.
When you apply for a payday loan, you’ll be required to submit your government ID number or Social Security number. You also have to provide proof of your gross monthly income. Lenders will, then, put your information into their statewide database to see if you’re eligible for an e transfer payday loan.
How much you can borrow will also be based on the info you’ve submitted. The lender will check in their database whether you have payday loans from other lenders or existing debts, as described above. If the database says you’re not eligible, you’ll receive a toll-free number from the lender for you to call for more information.
Why Choose This Over Traditional Loans?
In most traditional bank loans, application approval takes too much time and lots of paperwork. Aside from application review and approval, signing contracts and even getting funds also consume your time. When you urgently need money, especially during emergencies, a traditional loan isn’t necessarily the best option.
Most of the payday lenders today are already online. Nobody wants to still visit a brick-and-mortar store just to apply for a loan in the digital age. And, with the introduction of e-transfer payday loans, the entire process has become more straightforward. You can complete an application wherever you have a computer.
Most email money transfer payday loans are also available 24/7, which means you can get your funds anytime. Make sure, however, that you’re going to choose a reputable payday lender. Check for reviews about the payday loan company online. Customer testimonials are also worth checking out.
How To Apply
The application and qualification process can be as fast as fifteen minutes if the borrower quickly demonstrates they meet all of the requirements.
Another good thing about payday loans is that they’re accessible even to individuals with poor credit. Most payday lenders don’t require a credit check. Many Americans use payday loans, and most don’t have access to a savings account or credit card.
Options To Help Pay Off Your Loan
One option you have to help you pay back your payday loan is debt consolidation. It’s available even for consumers with bad credit. They typically charge lower fees and interest rates than payday lenders.
Bad credit debt consolidation loans, however, have stricter approval requirements. The good thing about debt consolidation loans is that they give borrowers more breathing room by offering longer repayment terms. Additionally, a debt consolidation loan shows up on your credit history, helping you work on building or increasing your credit score as long as you’re making payments on time.
When You Can’t Repay Your Loan
A borrower can ask the payday lender to rollover their loan if they can’t pay it back by the deadline. What happens in a rollover loan is that you must pay the original amount you have borrowed and the finance charge, including the additional finance charge that comes with the new deal.
For example, the lowest available finance charge is usually $15 for every $100 borrowed, if your payday loan is $375, you owe a finance charge of $56.25. That means your loan amount total is $431.25. The $432.25 actual amount borrowed becomes $495.94 if you factor in the finance charge of $64.69 for rolling over the payday loan.
E-transfer payday loans can solve your urgent need for money, especially in an emergency. They’re fast and secure. It’s also easy to qualify for one as long as you meet all the requirements. Be careful, however, as the high APR that comes with these loans could get you caught in one vicious cycle of debt if you can’t repay it on time. Thus, you should consider all your options before picking this option.
The post Everything You Need To Know About E-Transfer Payday Loans appeared first on Miss Millennia Magazine.
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