Editor's choice: OppLoans Installment Loans
- Easy online application
- Quick approval
- Long repayment terms
Thanks to the Automated Clearing House (ACH), an electronic network for financial transactions in the US, a short-term lender can deposit approved funds into your bank account rather giving you a check.
There are a number of short-term lenders who offer online loans, and most providers rely on direct deposits to get funds to their customers. You’ll usually apply for these loans online, and you will have to provide details of an account that accepts direct deposits.
The ACH system disburses funds and collect payments for online short-term loan providers. When you get a direct deposit short-term loan, you’ll have to include your routing number and account number. The lender will use these details to transfer money into your account.
The lender relies on the same information when your payment is due. They request the funds from your bank account on the due date. It’s problematic if you don’t have enough money in your account as the bank could charge you an overdraw fee while the lender charges you a nonsufficient funds (NSF) fee.
Before taking out a loan, make sure you’ll have the ability to repay it on time.
Check the websites of any providers you’re interested in to confirm they operate in your state.
Not all short-term loans are the same. These are the features you should look for when comparing your options.
Be on the lookout for loans that claim to be instant
If you can’t pay by your next check, consider an installment loan
If you’re sick of scouring the internet for lenders, let a loan broker do the work for you
How quickly can I get access to funds through a direct deposit short-term loan?
It depends on your banking institution and the lender, but usually you’ll see your funds deposited as soon as the next business day.
Can I apply for a direct deposit short-term loan if I have a bad credit history?
Yes. Most short-term lenders don’t require borrowers to have good credit history as long as they can demonstrate their ability to repay.
What eligibility criteria do I have to meet to apply?
You’ll need to be a US citizen or permanent resident, meet your state’s minimum age requirement, have the ability to repay the borrowed sum and have a direct deposit enabled bank account.
Direct deposit short-term loans give you the ability to apply from just about anywhere, and you can access approved funds no matter where you are as long as there’s an ATM around. Given the number of alternatives on offer, comparing your options before applying is a good idea.
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