The Ultimate Glossary Of Payday Loan Terminology And Definitions
If you’re curious about or considering a payday loan, it’s important to know the payday loan definition, including the different terms you’ll hear when you apply. This guide has got you covered so you can learn the ins and outs of payday loans in our glossary of terms. Having a greater understanding of the terminology you’ll be seeing can give you more confidence during the loan process.
After this quick read, you’ll be well-equipped to apply and get approved for a payday loan, if you so desire. Let’s dive in!
Payday Loan Glossary Of Terms
To start, let’s talk about what a payday loan is. There is no one-for-all payday loan definition but, at its core, a payday loan is a short-term solution for a financial emergency covering costs of $500 or less.
Payday loans are typically due on your next payday, whether that be the day you get paid from your job or the day you receive some sort of stipend, pension, or other guaranteed payment. Terms may vary depending on your situation, especially since Utah Title Loans, Inc. works with borrowers in all kinds of situations.
Extended Repayment Terms
An extended repayment plan or extended repayment terms allow you to repay your loans over an extended period. This could mean that your payday loan has been extended into installments past your next pay period. This is only available at the discretion of the lender and is not as common for smaller payday loans as it is for larger loan amounts.
An installment loan is paid off through regularly scheduled payments. Mortgages, car payments, and monthly minimum credit card payments are considered installment loans. Payday loans are not typically installment loans, although they can be under certain circumstances.
The loan terms are listed under the loan agreement. This includes the total loan amount, any interest or fees charged, a repayment schedule, etc.
Payday Loan Agreement
The payday loan agreement includes all of the terms of your loan. This is a legally binding document between the lender and the borrower.
The loan principal is the amount borrowed through the loan. Payday loan principals in Utah can be any amount up to $500. The principal does not include any interest or fees.
Unsecured loans do not require collateral. Our payday loans are unsecured. We confirm that you will repay your loan through your signature and word.
Collateral is any asset the borrower pledges as security for repayment of a loan. If the borrower doesn’t repay the loan as agreed on, the lender has the right to secure (or take) their collateral as repayment instead. Our payday loans do not require collateral.
Lending statutes vary by state and, sometimes, municipality. This is any statute, regulation, or law issued by a governing authority regarding laws. For example, in many states payday loans cannot exceed $500 nor can interest exceed a certain rate. Speak with one of our loan representatives to learn more about Utah’s lending statutes.
Pay stubs are the documents that outline the specifics of your pay during one pay period. In the past, these were connected to a physical paycheck. Nowadays, direct deposit is much more common so you may receive a digital version of your pay stub. If you aren’t sure where to access this form, speak with your employer’s payroll department.
When applying for a payday loan, you’ll need an active checking account, usually proven through a blank check from the account. Active means there should be no holds on the account and that you can access it anytime. There is no minimum balance requirement for our loans.
When applying, we’ll reference our “online form.” This is a general inquiry document you can fill out in a few minutes on our homepage to start your application.
The Benefits Of A Payday Loan
Payday loans from Utah Title Loans, Inc. offer a wide range of benefits, including:
- Only 3 requirements to apply for our payday loans: your I.D., recent pay stub, and an active account
- Bad credit and non-W2 income sources welcome to apply
- An online application followed by a short in-person meeting
- Up to $500 within 24 hours of approval
- A trusted representative for each borrower to walk them through the process
Get Your Money NOW
Now you know what a payday loan is and are familiar with the payday loan definition and benefits. If you need a few hundred bucks to urgently cover an unexpected expense, this loan may be for you. With a no-frills application process and a quick approval decision, you could find out if you qualify and get your cash as soon as today.
Give us a call or fill out the online form to get started. Don’t delay – grab your money before someone else does.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.