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I received a loan check in the mail. How does that work?

Categories: installment loan, loan chek

Have you ever gone to your mailbox and found a loan check inside? And as you read into the pre-approved loan offer, wonder if it’s legit? Do you ever ask yourself, what’s the catch or wonder how exactly did you get approved? Let’s get your questions answered and tell you everything there is to know about pre-approved loan offers, how they work, and what to do if you ever get one in the mail.


How did you get one?

Loan checks are said to have been around in the U.S since the 1980s. Many reputable companies mail out preapproved loan offers as an effective way to help potential customers get the cash that they need. If you get one in the mail, you might ask, “How did this lender choose me?” Typically the lender will work with credit reporting agencies to identify potential customers. They give the credit reporting agency a list of criteria that may be based on the lender’s underwriting standards such as: the customer’s ability to repay the loan or the likelihood that the customer will make their payments on time. You may also get an offer in the mail depending on your credit score.

How do they work?

Receiving a loan check in the mail is not a gift, and once the check is endorsed with your signature, the loan agreement becomes valid and legally binding. For this reason, it’s important to read all of the terms and conditions carefully before cashing your check. You’ll want to keep the letter that came with the loan too, as it usually includes important details about the loan and agreement.

Although normally these loans are unsecured, some offers may not have the best loan terms. You’ll want to read the terms and conditions to better understand the Annual Percentage Rate (APR), the repayment amount, the length of the loan term, and also to make sure that the loan is the right loan for you.

What to do next?

If you decide that this loan check you received in the mail is the right for you, then congratulations! These pre-approved loan offers easy to deposit or cash and use the funds in any way you choose. Many customers will use the money to pay or consolidate bills, while others may use it to help with vehicle or home repairs, medical bills, or for the holidays or back to school. The choices are limitless.

If you think you need more (or less) money than what’s been offered, then it’s best to speak with your lender directly. Typically lenders can get their customers more money when the loan is secured such as with a vehicle title or personal property. You may also get better terms or more time to pay with a secured loan. Just check with your local branch or internet provider to see what options are available.

When you’re ready to authorize the check, some lenders will require you to call their toll-free number first, so that they may verify your identity and make sure the loan is being funded to the same person it was mailed to. This extra step is a way to protect your identity from theft or fraud since your loan is not being funded in-person.

Once you cash the check, you should hear from your lender via over the phone, in the mail, or both. You may also receive a payment schedule and instructions on how and where you may pay back the loan.

As you can see, the process is really quite simple. So if you receive a loan check in your mailbox, there is no need to worry. Many people find that these loan offers are a convenient way of getting cash during times of need. If you have any questions regarding a loan offer you receive in the mail or the loan agreement, always do your due diligence and ask the lender any questions that come to mind.


For over 20 years, Always Money Finance has been a regional leader in providing affordable credit solutions to customers across the southeast looking for a convenient and confidential way to meet their needs. Getting a handle on your money takes time, and Always Money understands. If you’re in a jam and need immediate help, any of Always Money’s small personal loan options may be just what you need to get you going in the right direction.


To get started,

  • Visit a store near you (Click here to find the store nearest you),
  • Call 1-888-618-9217 to get pre-approved over the phone, or
  • Apply Online Now!


Related articles: Can an Installment Loan Affect My Chedit | Installment Loans vs. Payday Loans

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