When in a situation that requires cash urgently, you look for options that can help you get approved instantly. The easiest way to get money for an emergency is by applying for a payday loan with a prepaid debit card. Like the typical payday loan, you don’t need to wait for days to get approved as the lender reviews your application and provides feedback in under an hour. This means you can get money on the same day if you need cash to address an emergency like a medical situation.
Even for people with bad credit, no checking account payday loans are a good option as you’re not put through a hard credit check. The most important thing the lender considers is your source of income, so if you can prove you get money regularly, they will approve your loan request. Also, the process requires fewer documents and can be completed online.
Payday loans deposited on a prepaid debit card are a form of short-term loans, so you have less than three weeks to repay the amount. Take this into consideration when applying, as you don’t want to default on your agreement. The amount must be repaid when you get your next paycheck. You should also understand a shorter loan term plus lack of collateral means higher interest rates. Use an online loan calculator to know how much you’re expected to repay. This will help you understand if the product is suitable for you.
Before applying for payday loans that accept prepaid debit cards, it helps to understand what is a prepaid debit card. This is a type of cash-backed plastic card available to anyone who wants to use one. In the United States, about 10 million households cannot have a bank account, so they opt for a prepaid debit card, which is easier to get. The card allows cash deposits into it and can work as a credit/debit card. However, it’s not linked to a bank account, so this might not be an option if the lender only offers payday loans with a savings account.
The card behaves like a bank account when applying for payday loans online. Some people occasionally confuse it with a gift card as you deposit upfront, but it’s not a gift card. Getting a prepaid debit card does not require a social security number as there are no credit functions linked with it. Usually, the card lists purchases for the month or longer and allows you to print out your financial records. Issuing banks don’t maintain permanent records, which means you cannot use the card to build a financial history.
Often parents give debit cards to their kids to help them learn how to handle plastic cards. The card allows a teenager to spend a limited amount of money, so they cannot go over the credit limit. If the bearer tries using the card at a store and does not have sufficient funds, it will simply refuse to complete the payment. No overdraft charge, so no harm. Getting payday loans using a prepaid debit card makes sense as you don’t need a bank account to access funds.
» COMPARE: Payday Loans With No Bank Account
You can get payday loans with a prepaid debit card as lenders like LoanSolution accept this payment option. With your prepaid card, it’s easy to apply for a loan online. Once the lender approves your request, you will receive the money on a loan account, and the prepaid card will be linked with it.
The terms on loans for people with prepaid debit cards don’t differ much from other payday loans. First, you need to have a verifiable source of income, which is important as the lender calculates your eligibility using this information. If your income is sufficient to repay the loan, your loan request will be approved. Once you receive the cash, you must repay the loan on your next paycheck. This could be three or two weeks away, so ensure you have enough room to raise the money needed to clear the debt. Defaulting will lead to penalties and other charges, which would make the loan too expensive and keep you in debt longer.
Another aspect of prepaid debit card payday loans is interest charged. On average, payday loans cost 400% or more in annual interest (APR). The finance charge for these loans ranges between $15 and $30 for each $100 borrowed, so borrowing for two weeks would result in rates from 390% to 780% APR. When applying for the loan, you must take this into account, as it determines how much you will need to repay. Calculate the amount to know if you can comfortably pay off the debt and avoid penalties.
You know it’s ideal to get a loan with a prepaid debit card when you need quick cash, but what are the benefits of this option? Here are some reasons you might want to borrow online when looking for money to address a financial emergency.
Applying for payday loans that accept debit cards is easy as you only need to visit the lender’s website and follow this process:
On the lender’s website, find the loan application form and provide all the requested information. Once done, hit submit and wait for feedback.
After receiving your application, the lender will start the review process to determine if you qualify. Once approved, they will send you a notification with instructions.
After getting the notification on your application, you need to sign documents showing you understand the loan terms and agree with every condition. Read the terms before you sign to ensure it’s a good deal.
Finally, you will get the money deposited into your prepaid debit card. It can take about 24 hours to complete the deposit, but there are lenders with same-day cash transfers, so check if this is an option.
Before getting approved, you must satisfy several conditions. Check that you have these documents to complete your loan application online.
Check with the lender to know if there are other requirements for applicants.
Everything is available on the internet. You don’t need to visit the lender’s offices to apply. Companies like LoanSolution offer bad credit debit card loans you can apply for without leaving your home. Visit the lender’s website for all the resources you need to get a loan.
If you cannot get a payday loan, there are a few options you could consider, including:
Applying does NOT affect your credit score!
No credit check to apply.