Western Sky Loans gets asked many questions by people who are thinking about applying for a payday loan. We always welcome queries from potential customers, and we do our best to help them. To make things as easy as possible, we have compiled a list of the most common questions we get asked, and we have supplied the answers to these.
There is a good chance that any questions you may have are answered here. If not, by all means contact us with your payday loan questions.
1. Explain Payday loans
Payday loans are so called because they are short-term loans that should be repaid in full out of your next paycheck. Most people use payday loans to deal with a cash shortfall, often due to having some unforeseen event that they have to fork out money for.
2. Can anybody apply for a payday loan?
Anybody can apply for a payday loan, but there are certain criteria that all our lenders have before they will lend money. To be successful, applicants have to:
– Be USA residents
– Be at least 18 years old
– Be in receipt of a regular income. This can come from an employer, a pension, welfare, a trust fund, or any other source. It has to be a regular source of income.
– Have a bank account. When your application is successful, your money will be transferred directly into your bank account.
3. Can you promise to give me a loan?
We at Western sky loans do not make loans to anybody. We deal with a network of reputable lenders by passing them your details. It is up to the lenders to decide whether or not to accept your loan application.
The lenders with which we work do their best to offer loans to every applicant. However, there is no guarantee that a lender will offer you a loan. Every lender judges every loan application on its individual merits, and makes a decision based on the information supplied.
4. When do I have to pay the loan back?
Depending on the size of the loan, you may have to pay back the entire amount borrowed plus interest and fees on your next pay date. For larger loans, the lender may let you split payments over a few pay dates. The longer the period you take out a loan for, the more interest you will have to pay.
5. What interest and fees do I have to pay?
Each lender has its own fees and interest rates, so you need to check these when you get quotes. You will always have to pay interest, but some lenders will not charge any arrangement fees. We at Western sky loans do not charge any fees for our service.
When your loan application is processed and accepted, you will see exactly how much you will have to repay. You can then decide whether or not to accept the loan.
6. Can I repay early?
You may be able to repay early, although doing so may not save you any money. You will need to read the lender’s terms and conditions to find out its policies on early repayment.
7. How do I make repayments?
Payments will be taken directly from your bank account.
8. Is there a penalty for late payments?
If you do not repay your loan on time, the interest you have to pay will increase. Additionally, some lenders will charge an administration fee to process your late payment.
You need to read the lender’s policy on late payments. Preferably, you should always pay on time to save money and avoid attracting extra charges.
9. What if I default on my loan?
This could be a very costly mistake. Payday loans are issued at high interest rates. They are intended as very short-term loans, so the monetary amount people have to pay back in addition to the loan is quite reasonable. When loans are extended beyond the agreed payment date, the interest on the loans makes the amount due accumulate rapidly.
Lenders actively pursue defaulters. They may get court orders or injunctions against defaulters. They may engage the services of third party debt collection agencies. Any fees associated with the recovery of the debt are normally added on to the debt.
It is not advisable to default on a payday loan. It could have implications for the rest of your life. If you think there is any chance you will be unable to repay your loan, then you should not take out a loan.
10. My credit rating is bad. Will this affect my chances of getting a loan?
Most lenders do not bother checking the credit rating of applicants, and the vast majority of loans are approved without regard to the applicants’ credit ratings. Payday loans are not intended to be long-term debts. All the lender wants to be sure of is that your income is enough to repay your loan on time.
11. Can I top up my existing payday loan?
You will need to discuss this with your lender. Even if your lender agrees to a top up or offer an extension to your loan, it might be better to pay the loan off in full with a new loan from a different lender. This is because some lenders charge administration fees for top ups and extensions. Note that top ups and extensions are not permitted in some states.
12. Can I rearrange my repayment schedule?
You will need to discuss this with your lender.
13. Can I get a payday loan if I already have other loans?
Most lenders are only interested in your ability to repay the loan you get from them. You must have a regular income, and they ask you how much money you have left after all bills including mortgage payments, or payments for other loans, have been paid from your regular income. It is what you have left, together with the amount you want to borrow, that is the most important consideration for payday loan lenders.
Remember that restrictions are there to protect you. Therefore, you should always be honest and declare all outgoings when you apply for a loan. If you cannot afford a loan, then getting one by omitting important information, or providing misleading information, can land you in deep financial trouble.