Direct Deposit Loan

Consumers interested in a direct deposit loan needs an active checking account, a regular source of income, and little else. When paydays just don't seem to come around fast enough, there are many short term lenders who can provide qualified borrowers with speedy cash advances for financial emergencies. By placing the needed funds directly into an applicant's checking account, the process of securing such loans is greatly simplified. Many providers of the direct deposit loan can be found online. A simple online application process makes securing these loans simple, quick, and private. In the event of a financial emergency, many borrowers would much prefer to get a loan from a lending institution rather than approaching family or friends. However, the ease with which these funds can be obtained can make them something of a dangerous temptation. Any consumer who is considering taking advantage of these services should remember that these loans are designed to be only a short term answer and habitual use can be very dangerous.

As the name implies, a direct deposit loan will be directly deposited into a successful applicant's active checking account. For individuals who have a low credit score or spotty financial history, this is one alternative that can work. In most cases, there is not a credit check that is performed in the qualification processes that are involved with this funding. An applicant must be at least eighteen years of age and should be able to show proof of this. Another essential item is a regular paycheck or other source of income, and again, lenders will require proof of these facts. A history of default with other lenders who provide the direct deposit loan, or other type of short term lending solution, will generally be seen as a deal breaker. Some lenders prefer the ability to put funds directly into a borrower's account because this will also generally mean that funds can be pulled directly out when the time comes to pay the debt back. This approach gives the lender added security that these loans are less risky and that the debt will be paid back.

When paying back a direct deposit loan, a borrower should take care to be prompt or face extra fees and possibly a raise in interest rates. Since some providers will inform the borrower that a withdrawal will be made from the borrower's checking account on a certain day, the borrower should make sure that sufficient funds are deposited into the account. Most lenders will have a repayment plan that take into consideration the possibility that the consumer will not be able to pay the loan back on time. If a borrower finds that they will not have sufficient funds in their account to cover the debt, most lenders will asked to be notified at least two business days in advance. The lender will usually request that the borrower apply for a renewal of the loan if this is the case. But care should be taken here. Every time that one of these loans is renewed, the interest rates will usually rise, sometimes exponentially. Additional fees and charges may apply as well, resulting in a direct deposit loan that has become an expensive venture indeed. The Bible talks about the value of calling upon God for help. "In my distress I called upon the Lord, and cried unto my God: he heard my voice out of his temple, and my cry came before him, even into his ears." (Psalm 18:6)

This short term lending option should not be considered for anything other than a fast and correctable remedy for sudden monetary need. Borrowing large amounts of money should not be done in this manner. However, as a temporary measure to meet financial needs, the direct deposit loan can provide a viable solution, so long as the borrower has the means to pay the dept back on time. There may also be times when the due dates on certain monthly bills and the dates when paydays fall do not work in harmony. Short term financing can serve as a way to make these examples of unfortunate timing work out. The lender will require the routing number that is associated with the borrower's bank account as well as the checking account number. These two numbers have separate functions. A routing number is needed in order to direct the funds to the borrower's individual bank. A checking account number is a little more specific in that it provides direction to the individual's account.

When applying for a direct deposit loan, an applicant can expect to need to furnish several things including some kind of photo identification, proof that the applicant has an active bank account that is in good standing, a recent pay stub that shows current employment, and, in some cases, proof of United States citizenship. It is always wise for the potential borrower to make sure that the lender that they are working with is a reputable one who does not engage in predatory lending practices. And, of course, it should go without saying that an individual should be very careful about loosely turning over information such as social security numbers or the routing or identifying numbers to their own personal checking accounts. Obviously, careful research should precede any application for this short term funding. Another thing to consider is the fact that some lenders will charge additional fees when using electronic funds transfer methods.

Add to: File Insurance Business article Teen Photo Images