Is A Payday Loan Secured or Unsecured?
March 17, 2021 | Peyton Sawyer
A Kentucky payday loan may be just what the doctor ordered if you're struggling to make ends meet. It's also a terrific option for hardworking people with less than perfect credit or lacking collateral. So, is a payday loan secured or unsecured? That is the question, and this is the answer.
Secured Vs. Unsecured Loans: What's the Difference?
Secured loans require collateral for approval, but unsecured loans do not. Instead of seeking possession of an asset, lenders consider the applicant's ability to pay back their borrowed money. And since qualified payday loan applicants have a steady paycheck coming in, they're usually approved for substantial cash within minutes.
So, Is A Payday Loan Secured or Unsecured?
A Kentucky payday loan is classified as an unsecured loan, meaning nothing is needed to "secure" the borrower's liability except for a signature and proof of viable income. Paycheck advances are short-term lines of credit that provide quick cash when you need it the most. And in most cases, they get paid back within 14-30 days or less.
NOTE: Secured loans are typically used for large purchases like cars and houses, while unsecured loans generally help with smaller purchases like basic living expenses and emergencies.
How Do Payday Loans Work In KY?
The unsecured payday loan process is relatively simple in this state. In fact, you can borrow as much as $500 per transaction with only minimal documentation. Each form gets processed quickly and, if you qualify, funds get paid out within 24 hours. The best part is that you can get approved even if your credit report isn't squeaky clean.
Meanwhile, an unsecured loan representative from Fast Payday Loans of Kentucky, Inc. will walk you through the process from start to finish. You'll have time to ask questions and get the answers you need to make an educated decision. Unlike secured loans that require lots of risks, this option does not. On top of that, it only takes the following things to qualify:
- Your government-issued driver's license or photo ID
- Your most recent pay stub from work
- A blank check from an active checking account in your name
Don't worry if you don't get pay stubs from your job because you're self-employed. There are other forms of income proof that you can use, so ask your payday loan agent for more information.
How to Qualify for A Kentucky Payday Loan
So, is a fast payday loan secured or unsecured? You have your answer. Now, learn how to qualify for the money you need as soon as possible before the late fees start adding up. Here's what you need to do right away:
1. Apply Online for Quicker Application Processing.
Paper forms for payday loans still exist, and they work just fine. However, you can go to the Fast Payday Loans of Kentucky, Inc. website to have your request for an advance processed within 30 minutes or less. Then, you can schedule an appointment to finalize the contract at your earliest convenience.
TIP: Make your appointment as early in the day as possible to get ahead of banking hours.
2. Meet With Your Payday Loan Representative for Closing.
This is when you'll have the chance to ask questions about the terms of your loan. Find out how long you have to pay it back, how much money you'll receive, and when it will hit your bank account. If everything looks good, sign your payday loan contract and walk out with cash on its way. In some cases, borrowers can get paid the same day they apply.
TIP: Apply for a payday loan after receiving a larger paycheck to increase your creditworthiness.
3. Pay the Borrowed Money Back As Quickly As Possible.
Repayment terms are generally pretty flexible when it comes to paycheck advances in Kentucky. That's because a lot of people get paid on a bi-weekly or monthly basis. So, talk to your loan agent about the installment infrastructure and be ready to repay the borrowed money in a way that best suits your lifestyle.
TIP: Try to repay the first loan before taking out another one or use an alternative source of funding instead.
Is a payday loan secured or unsecured even though borrowers have to use their paycheck as collateral? Good question. You can actually get more than one Kentucky payday loan at a time, and that's usually not possible with secured lines of credit. Plus, it doesn't stop your paychecks from coming in, and it doesn't affect your employment either.
Get a Kentucky Payday Loan Today!
Many people ask, "Is a payday loan secured or unsecured" and that's a fair question. After all, it uses your paycheck as a form of collateral, although it doesn't qualify as such. That's because your paychecks keep coming in, so this service is merely an advance payout on what you already own.
If you have ever wondered, “is a payday loan secured or unsecured”, wonder no longer. Let our article tell you the truth about such inquires. And if you need a little more information on getting payday loans in Kentucky, don’t hesitate to ask our representatives at Fast Payday Loans of Kentucky LLC.