Wednesday, October 13, 2010

Instant Approval Payday Loans - No Stress of a Credit Record

Now it is possible to get instant approval for a payday loan if you have got a legitimate checking account. As the regulations of the financial system have improved and grow to be more sophisticated, short period companies who provide the revenue needs of consumers between paychecks have held pace. With these developments, it is now less difficult than ever to deal with a near-term money shortfall by finding the correct provider.

Under the original standard, when an individual needed to take a payday loan, they would probably go to a company's physical location and complete a formal application. Portion of the application procedure involved exhibiting to the lender a series of pay stubs as evidence that the borrower was working, obtained a steady paycheck, and would be able to repay the cash advance. He would then provide a check to the provider for the amount to be borrowed and collect the needed cash. The formal application was comparatively seamless, but there was some tediousness and extra time.
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As technical advances have been made, companies are today able to accept and process these requests entirely on the internet and produce immediate decisions. After the formal application is processed, if the borrower has a valid bank checking account, the cash loan can be completed promptly. The way this functions is that once that the instant approval payday loans is to be made, the provider creates an electronic data transfer by which the cash loan can be repaid. The borrower authorizes that payment. With an electronic transfer, the lender is able to send the cash loan repayment to the provider's bank at the time the payday advance is made because the payday loan term is very small. This repayment is in the financial system instantly which provides the company a significant degree of protection. The complete mechanism for the flow of funds is ready before any money changes hands.

The scenario explained above is only possible if you possess a legitimate bank checking account, because the payday advance repayment is run through this particular account. The other reason why a lender is willing to make an instant cash advance to an individual with a valid bank checking account is that most commercial banks perform credit checks before opening a customer checking account. Although the requirements needed to get a bank checking account are very minimal, there is still a standard to become met. The quick nature of a cash advance makes the provider comfortable with the idea that when one's credit qualifies for a checking account, it most likely qualifies for a two week, low amount payday advance.

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