What are Online Payday Loans?

According to the most commonly accepted definition, issued by CFPB, a Payday Loan – is a “short-term, high-cost loan, generally for $500 or less, that is typically due on your next payday”1.

Wikipedia defines it as “a small, short-term unsecured loan, regardless of whether repayment of loans is linked to a borrower's payday”2.

Investopedia sees Payday loans as a type of short-term borrowing where a lender will extend high-interest credit based on a borrower’s income and credit profile3.

In a nutshell:

Having analyzed these definitions we understand the main ideas of Payday Loans (which can be also called payday advance, salary loan, payroll loan, small dollar loan, short term, or cash advance loan) to be:

  • short-term (14-30 days),
  • for small amount (up to $1,000),
  • available even with bad credit (even for borrowers with poor FICO credit score),
  • high-cost (with the APR from 391% to 3,733%)
  • unsecured (is given without any collateral).

As you can see, rates and other lending conditions are varied, which sometimes makes the borrowers confused. That’s why it would be wise to compare all the lenders ready to offer you money and choose the one most suitable for you. This opportunity is given by the COMPACOM website with more than 300 Payday Loan direct lenders as well as in-store companies.

How Do Online Payday Loans Work?

One can take out a Payday Loan in-store or online. The process consists of three easy steps:

  • Online application
  • Get approved in a few minutes
  • Get Your Money in 24 hours or even today

Online borrowing is definitely faster, easier, and more convenient. You spend only a couple of minutes filling out an application. It’s free and doesn’t affect your credit history. And you get the chance to compare the most reliable licensed companies or we match you with any of the 300 direct lenders that suit you.

The process is:

  • Fast (a minute for applying, a couple of minutes to get approved, less than a day to get the money);
  • Easy (no driving, waiting in lines, doing paperwork, looking for a guarantor or collateral is required);
  • Safe (your private information is secured and all your rights are protected as we only work with legal state-authorized companies). 

 Can I Get Online Payday Loans Instant Approval?

Most borrowers choose Payday Loans as they need cash fast. That's why instant approval is likely to be very important for them. Is it really true that you are guaranteed to be approved for a loan in a few minutes? What the lenders do promise is an instant decision. The application process is really quick and easy. You are required to fill out only some simple information including your personal data, phone number, e-mail address, etc. Besides, you may be sure it's absolutely safe. 

What concerns approval it depends first of all on the lender, and secondly on your following all the eligibility criteria. Whether a lender does a credit check, whether it's hard or soft, and whether you have good or bad credit, will affect the time necessary for approving you or not. 

Luckily, in most cases, Payday loans are available even with bad credit and therefore they can get the money the same day, or even in an hour if they borrow in-store.

How To Apply for Payday Loans Online 

If you already have some experience borrowing money or are good at surfing the Net and doing research online lending will definitely suit you. In the modern age of high technology and the World Wide Web, the majority even order food, buy clothes, book tickets, etc. online, to say nothing about borrowing money. No doubt, it’s faster, easier, and more convenient. You fill out a free application online. It doesn’t affect your credit history as usually doesn’t imply a hard check. In some minutes you are connected to the direct lender, and in case you get approved you get the money into your account in less than 24 hours. Or you can use the service of a lending broker company that will provide you access to many lending organizations so that you can choose. Or, which seems the wisest way, use our COMPACOM website to get the chance to compare both online and in-store lenders near you, in your city, or in your state, and decide whose rates and other conditions suit you best. 

Online Payday Loans Pros and Cons You Should Consider

Why Borrow Payday Loans Online
  • fast: 1 minute to apply, instant approval, less than 24 days to get money;
  • easy and convenient: no driving, no paperwork, no waiting in lines;
  • applying is free and doesn’t affect your credit history;
  • funds go directly to your bank account, you don’t have to get cash, deposit it into your account, or leave a postdated check;
  • accessibility: every person possesses a smartphone or laptop and can easily go online available for candidates with low (about 600) FICO credit score;
  • being able to compare a lot of lenders with their rates and fees at one time, which can be easily done with COMPACOM service;
Online Payday Loans Drawbacks
  • There can be some scams, who want just to get your private information. So be careful, before applying check whether the lender is authorized and legal. You can do it with a quick Google search; go to https://www.trustpilot.com/ 4, call the Better Business Bureau at https://www.bbb.org/ 5, or speak with a customer representative for that company.
  • It sometimes can be rather expensive, you may be charged additional fees such as verification, database, and administration fee. But it’s easy to avoid overpayment if you study and compare all the offers at first. Even if you pay off the loan earlier than agreed there won’t be any prepayment penalties, but there won’t be any savings either.

Online Payday Loan Requirements

What do I need to qualify for a short-term cash advance?

Independent lenders have their own individual requirements that must be met, but typical minimum requirements include, but may not be limited to:

  • US residence
  • Minimum regular income of $1,000 per month
  • Valid checking or savings account with direct deposit
  • Phone number and e-mail address (if applying online, you must be able to be contacted via phone if verification of application information is necessary)
  • Not be a regular or reserve member of the Air Force, Army, Coast Guard, Marine Corps or Navy (or be a dependent of someone who is,) serving on active duty under a call or order that does not specify a period of 30 days or fewer.
  • If applying Online, you must provide a valid Social Security Number
  • If applying at the Loan Store, you must bring a valid government-issued photo ID. A Social Security Number might not be required
  • If applying in-store, you must bring proof of income and proof of a bank checking account. Debit cards or pre-printed checks may be accepted in your state as proof of bank checking account; contact your local store for details. Acceptable documents may vary by state.

Payday Loans Near Me as Compared to Online Payday Loans

Though online loans seem to be easier and faster some people may prefer to go to a real store, talk to a real person, ask for advice or help, and get the money just the same day, or even the same hour.  For some people it’s a benefit if they prefer face-to-face communication, like to see everything with their own eyes, to feel, touch, and maybe even smell))) Seriously speaking, there is always a real person to answer any of your questions and help with any problems. Some lenders may ask you to bring some documents from work or the bank and maybe to leave a post-dated check to secure a loan. To pay it off you can come back to the store or do it through electronic debit. Choosing a storefront Payday loan may be the right decision for those who are doing it for the first time, feel unconfident, or lack some information.

Before going to the nearest Payday store consider the following advantages and disadvantages:

Benefits of Payday Loans Near Me

  • personal contact and ability to see the lender, discuss their conditions, ask questions, and get some help on the spot; 

  • the specialists’ support and help, for example, in filling out an application; 

  • sometimes at the front store you can receive money right on the same day whereas applying online you may wait till tomorrow; 

  • stores are more easily controlled by the state which means they are more likely to be legal

Drawbacks
  • It may take longer time than online lending which requires only a few clicks. 
  • If you want to compare loans, you’ll have to visit various lender locations, which means driving and losing time in traffic jams.
  • You have fewer options to choose from as they are limited to your location. 

Online Payday Loans Near Me Locations

Online Payday Loans From Direct Lenders 

When you decide to take out a Payday loan the first and most important thing is to find out their legal status and regulations in your state, and the second – is to choose a reliable lender. It's very important to find a licensed lender with good experience and verified reviews because:

  • Usually, loan amount, rates, and fees depend on the lender;
  • The requirements as well as your chances of being approved for cash advance even if you have bad credit are also different according to the lending company;
  • You can be sure that your rights are protected and your privacy is secure only if you deal with a legally licensed lender who works under the state’s regulations.6

Before applying with a certain lender follow this expert advice:

  1. Check it out on the Ministry of Government and Consumer Services’ website.7
  2. Go to the Consumer Protection Branch website.
  3. Search for License / Lender / the name or address of the lender.
  4. You’ve got the list of all the licensed Payday lenders in the state. If the company you want to apply to is not there, you’d better choose another one. Otherwise if you have any problems or complaints you won’t be able to get any help or protection from the state.
  5. Compare Payday Loan Lenders Online at COMPACOM

How Much Do Payday Loans Cost: rates and fees 

$100 - $1,000 Payday Loans are often avoided because of high interest and APR. But if you get into details, you find out they are not as expensive as it may seem. A short-term cash advance is due with your next paycheck, which means no later than 31 days usually. Even with an APR of 400%, the total cost of the loan borrowed for a month won’t be more than $33. It’s only about $1 a day! Don't believe it? Prove it by counting the cost of your cash advance using our calculator:

Payday Loan Calculator

$
days
%
$

Estimated Payment

$1,264.14

Total Principal Paid: $ 1,000.00
Finance charge: $ 387.42
APR: 471.36 %
Apply online

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.

Are Online Payday Loans Available for Bad Credit?

When we speak about the level of trust with you as a borrower we often mean things such as “good credit” and “bad credit”. What do they mean? Your credit account history is gathered and processed by credit reporting agencies, compiling your annual report. If it contains positive information, you are said to have good credit. If there’s a lot of negative information, such as defaulting loans, late payments, etc., you are a bad credit borrower.

Bad credit can affect your chances of getting approved for a loan, find a good job, buy a car, or rent an apartment. That’s why you need to understand how the financial system measures your credit score. A credit score is the number that lenders use to quantify how risky a borrower you are. It’s used by banks and credit card companies to see if they want to lend to you.

Can I Get Payday Loans Online With No Credit Check? 

When you apply for a Bad Credit Unsecured Payday Loan you naturally try to avoid credit checks.  Hard, or even soft inquiry is believed to affect your score which may be a bad FICO score and you don't want to make it even worse. No credit check Payday Loans sound more like a myth than reality as it is necessary both for you and for the lender. It's the way to decide whether to approve you or not and to let you make sure that you are able to repay the loan. Still, there do exist some lenders ready to do without credit checks compensating their risks by higher APR or other fees. 

Online Payday Loans Same Day 

Online Payday Loans Same Day are often very small, the amount starts from $50 and up to $1,000. They are given for a short period of time, usually up to a month. And they have very simple requirements. That's why it's usually easy and quick to get the necessary funds. You get an instant decision from one of the direct lenders as soon as you apply. After you are approved the funds will be deposited into your account within one working day if you borrow online. And it may take less than one hour if you apply in-store near you.  

Online Payday Loan Alternatives

There are some other alternatives, but payday – is the fastest and easiest choice. 

When you urgently need money but can’t or don’t want to take a payday loan consider the following options:

"Putting it out of business will simply drive it underground into the hands of gangs, local crime bosses or worse,"  says W. Todd Roberson, a senior lectof finance at the Indiana University Kelley School of Business . "While payday lenders might not be the most respected businesses, at least they operate above the law, are required to follow employment and financial disclosure policies that any business must follow and generally only harass people who can't pay; think of how a criminal element would handle collections."

Still, the majority prefer payday lending.