Payday Loan Cash Advance Underwriter
Payday loan and cash advance underwriters carry out their duties in a very systematic way. I have personally spoken with a local payday loan lender and things are not as rosy as you would guess. Much of the money that they lend out never gets repaid and many people who got the payday loans just run with the money. It is because of this fact that they have to be careful and their underwriters must be experienced financial experts who know how to validate loan requests and avoid those customers who are unable for one reason or another to repay their loans.
A validation process is undertaken from the very outset of a payday loan. The cash advance underwriter must take your application from you online or off-line while sitting in their office. In either method the same rules apply to your payday loan application and possible approval. The underwriter must validate your application with due process and have solid records of your employment and where you live. You would think that they would record more information than that before approving your loan. They know that they are in a high risk lending business and they expect a certain percentage of borrower’s to default and behave in a completely delinquent manner.
This is why payday loan providers charge such ridiculous interest just on the verge of committing a federal crime. In my opinion payday loan operators are skirting with ethics and are in many ways synonymous with gangster style loan charging – the only difference being they don’t generally break legs or threaten your family members if you are delinquent. (However I have heard of payday lenders being extremely aggressive using tactics of fear and abuse to claim their money back). Make no mistake if you borrow money from a payday loan lender, they will aggressively try to obtain their money back if you fail to repay your loan.
What Information Do You Need to Provide When Getting a Payday Loan
When you apply for a payday loan you will have to release paycheck stubs, employment status (as mentioned above), a valid checking account, and proof that you are above the age of 18 years old. Once the payday loan underwriter has gathered all of this information and has checked to make sure that it is valid, accurate, and honest they can then start their verification process.
As usual on Financing USA we have to let you know of the precautions you must take. The actual APR (annual percentage rate) of a payday loan is usually somewhere between 250% to 350%. This is like paying upwards of $50 for a relatively small short-term to week loan – be careful out there.
Assuming that you have everything in order and your employment record is in indeed verified, and your address verified, the payday loan process happens very quickly. The payday lender works on volume, meaning that they know a fairly high percentage (20 to 25%) of borrower’s are delinquent in the need to push through as many loans as possible to reap the rewards from the high interest rates they charge on the reliable applicants that make their payments on time.
Once the payday loan and cash advance verification process goes through the money you borrow is usually automatically deposited into your checking account.
Verification of Your Information
Assuming that you have everything in order and your employment record is in indeed verified, and your address verified, the payday loan process happens very quickly. The lender must verify that you actually have a job and may even call your place of employment to confirm that you work where you say you do and how long you have been working in that location. If they are concerned about the information provided they could also check how long you have lived at your address, by calling your landlord as well.
The payday loan cash advance lender also wants your bank information and may even ask for copies of the last few months of statements from your checking account. They are looking for situations where you may have written checks with insufficient funds in your account. This tells them that you did not manage your cash flow well and it is a warning that the same thing could happen when it is time to repay your loan. The statements will also show that your paycheck is being regularly deposited into your account either when you cash your check or when it is EFT’d(electronic funds transfer).
In some cases where a borrower has a bad history of repayment having a job is not good enough to get approved for a cash advance payday loan. They have to provide some sort of short term security in the form of perhaps a car title loan. This is why many payday lenders advertise car title loans in their windows, on their web sites, in their brochures, on the radio, on Television, or in your local Yellow Pages.
If you cannot repay your loan back, rest assured that they are coming after your car to sell and recoup whatever money was owed to them plus expenses associated with repossessing your car and processing the delinquent loan. This can be very expensive in addition to the already high APR.
The bottom line is that if you must apply for a pay day cash advance loan, always make sure that you know how you will repay the loan, otherwise it will get much more expensive and the underwriter will aggressively try to recoup what is owed to them.
A payday loan cash advance under writer has a difficult job. They are in the business of making money and also helping people when they need a loan and cannot get a loan anywhere else. With so many people applying for loans that really have no means of repaying the loan, they do have to turn down many potential customers all of the time. When you apply for a cash advance loan, try to make sure that you have all of the information ready that is needed to substantiate your place of work, your income and your address. As mentioned previously you will also need your bank account information as well unless you take a cash loan directly from the payday lender. This may be an option for those people who have established a solid record or repaying cash advance loans.