$100 - $1000 Payday Loans are an easy and quick solution when you need urgent cash. Direct lenders guarantee an instant decision as soon as you apply. They approve most candidates even those with bad credit. Requirements are simple. No co-signer or collateral is needed. Learn how the borrowing process works and how to find the cheapest loan from a reliable lender.
Table of Contents:
What do I need to get a Pay day Loan?
What is average loan interest rate?
How much does a Payday advance loan cost?
What is a Payday Loan?
A payday loan is a short-term loan going for about $500 less or more designed to help people bridge financial gaps between pay days. It’s charged with a percentage rate fee for the service and has a repayment period of 4 to 1 week which is until your next pay day.
A pay day loan is not a cash handout designed to bail anyone from situations without them having to be responsible. Neither is it a financial system designed to doge the traditional loan system that demands a lot more procedure. Lending process normally includes keeping a good credit score in order to deserve an advance on financial assistance. This is typically what someone with minimum wage can afford. And they don’t have to put their entire properties on a mortgage as well as worry about the progress of their credit scores that might not be in a good look to attain a traditional loan for them.
Payday Loans definition
A payday loan is a high-cost, short-term small-dollar cash advance from $100 to $1000 which is to be repaid with your next paycheck within 14 – 30 days.
How do Payday Loans work?
After you apply for the necessary amount of a Pay day loan online or in a store a lender verifies your income and bank account and makes instant decisions to approve you or not. If the company finds you eligible for the cash advance they deposit the money into your account within a few minutes and you can receive the funding the same day or within 1 – 2 business days.
You sign a post-dated check which lets the lender withdraw the money in the amount of the principal and interest when the loan is due.
Payday Loans facts
It is possible for some payday lenders to offer long-term payday installments which can be withdrawn periodically with the borrower’s consent from their bank account typically due on each pay date.
- Payday loans have a minimum of $100 and maximum always depends on the state legal maximums.
- On average loan term is about two weeks.
- Loans typically cost 400% annual interest (APR) or more.
- The finance charge ranges from $15 to $30 to borrow $100.
- For two-week loans, these finance charges result in interest rates from 390 to 780% APR. Shorter-term loans have even higher APRs.
- Rates are higher in states that do not cap the maximum cost.
So be attentive, borrow carefully, compare the lenders, their fees, and terms before signing an agreement.
Are Pay day loans legal?
According to the CFPB Payday Loans legal status is determined by the state’s laws. Short-term loans can be legal with no restrictions, legal but with certain limits of loan amounts, interest rates, etc., and prohibited. Before choosing a Payday Loan as a source of immediate financing it’s required to check their legal status in your state of residence. In case a short-term cash advance is not allowed, you may consider other alternative ways of urgent funding such as Installment Loans, Personal Loans, Check Cashing, Title Loans, Government Assistance programs, etc.
Read more: Payday Loans Laws and Regulations
Online Payday Loans
Online Payday Loans seem to be the quickest and easiest way to take out instant cash. Practically all lending organizations have a website and offer a chance to apply for the necessary money from the comfort of your home. It has a number of benefits:
- It’s fast and convenient – you don’t have to waste time driving, visiting shops, doing paperwork, etc.;
- It’s unsecured – neither collateral or co-signer is required;
- Payday Loans Online are available for bad credit and no credit;
- You can apply for small loans 24/7;
- You are guaranteed instant approval online if you meet the basic requirements.
To get a loan online you just follow three easy steps:
- Submit a loan request form online;
- Get instant decision from a lender after he verifies your information;
- Receive the funds deposited into your banking or checking account the same day or within 1 – 2 business days depending on your bank working hours and the time you’ve applied.
Payday Loans near me
Payday Loans in a store are one more option to get instant cash the same day. In comparison with online Payday Loans it may take a bit longer to go to the lender’s location, fill in the papers, wait for approval, but you get the cash before you leave the loan place. It’s also quick and available for borrowers with any credit. Look for Payday Loans near me online to get the lender’s address and other information in advance to save your time.
How to Get a Payday Loan?
There are one too many names for this kind of credit — payday loans, cash advance loans, check advance loans or post-dated check loans — which can be gotten from a variety of sources. Whether you are walking down the street and searching for payday stores near me on google maps or applying online, the process is basically the same:
- you provide some personal and financial information,
- request a loan for a certain amount in the dollar currency which can be secured by check or bank account debit authorization,
- the lender calculates a fee which has to be paid for the loan obtained,
- you receive the cash or it is deposited in your bank account,
- at receiving the payday loan, the cheque signed over that includes the principal sum plus the fee charged over to the lender which they will cash out when you are ready to settle the debt.
What do I need to get a Pay day Loan?
To get guaranteed instant approval for a Payday Loan you need to meet simple requirements. These eligibility criteria may vary a bit depending on a lender but in general, they come to the main points such as:
- Being of legal age over 18 (or 19) depending on the state’s laws;
- Being the resident of the USA;
- Having a valid banking account;
- Ability to prove your income;
- Providing an active e-mail or phone number.
For more detailed requirements consult the lender.
What is the average loan interest rate?
The cost of Payday Loans is calculated on the basis of the loan principal and APR. The APR means average percentage rate which is expressed as a percentage and represents the actual yearly cost of a loan. It also includes any fees or additional finance charges.
The average Payday Loan interest rate is about 400%. However, the APR may vary from 390% to 780%. As a rule, a lending company determines the rates according to the loan amount, your credit score, your income and other criteria. Besides, the state can impose certain limits on the maximum APR allowed.
How much does a Payday advance loan cost?
The total cost of a Payday Loan includes the principal, the interest and additional fees. The interest is based on the loan APR and calculated depending on your repayment term. Additional finance charges consist of a verification fee, NSF fee, late payment fee, etc.
Estimated Payment
$1,264.14
| Total Principal Paid: | $ 1,000.00 |
|---|---|
| Finance charge: | $ 387.42 |
| APR: | 471.36 % |
Payment Breakdown
Select the amount for the loan you want in order to get the principal, which is the basis that we use to calculate the interest and the total cost of the cash advance.
The number of days within that you will be ready to repay the loan. It’s used to count the total cost of cash advance by multiplying the days by the amount of interest.
To calculate the total cost of your loan, we take the minimal average APR legal in all States, which is 36%. This figure is only a representative, providing you with general information on how much the loan may cost. To find out a more accurate total, fill in the Annual Percentage Rate required by the lender you want to apply to.
It’s the money charged by the lender for doing all the necessary paper work, bank transactions, etc., connected with lending you the money.
Payday Loans have some flexibility attached to their repayment:
- you might want to clear the debt with cash - this is also possible by returning the sum borrowed and by so doing redeeming the cheque;
- let’s say you have experienced setbacks and are not able to clear the loan on its due date, it is possible to clear the interest fee and push the loan over to another pay period.
Payday Loan companies
When you consider getting a Payday Loan for any emergency needs, you may choose among various organizations such as direct lenders online or in a store near you, brokers, matching services, or comparing services which also give you an opportunity to fill out an application form.
Direct lenders offer instant cash advance directly without any third parties which makes the process faster and safer. But you should apply for each separate lender and if you are rejected by one, it’s necessary to start all the process from the beginning. Many loan requests may take you more time and may negatively affect your credit history.
What concerns brokers or other lending services, they let you fill out an application form once and get access to the database of lenders. This is faster and more convenient than applying for each separate Payday Loan company. But you may be charged additional fees for the broker’s service. And be careful with your personal information.
The best Payday Loan alternatives
As many finance experts consider Payday Loans rather a risky way for urgent financing, you may also think of other ways to get an instant cash advance.
Among Payday Loans alternatives it’s worth considering:
- Installment Loans up to $5000
- Personal Loans of $5000 - $35000
- Car Title Loans
- Government Assistance programs
- Borrowing from banks or credit unions
What to watch out for applying for a Payday Loan?
When you consider Payday Loans to solve your financial problems, you should be careful to watch out for some short-term loan special features:
- High APRs and short repayment terms which make Payday Loans rather expensive.
- Frequent rollovers and extensions which lead to more debt.
- High late payment and renewal fees.
- The danger of severe collection practices.
- Damage to your credit history and credit score in case of loan defaults.
That’s why you should take into account all the pros and cons of short-term small-dollar Payday Loans and their necessity before applying for one.
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