Payday loans can provide a fast and efficient way to borrow money quickly in an emergency. Whether it’s $300 or $500, the idea is that you can get a cash advance on your next paycheck and use that money to pay any urgent bills and then pay off the loan in full when your next payday or spread the reimbursement over several instalments.
Payday loans are legalized in 37 US states and there are currently over 20,000 stores where you can physically request and receive same-day funds, primarily in states such as Nevada, Texas and California.
Applying for a payday loan online is often more convenient, with an application taking less than 5 minutes followed by an instant decision and funds being transferred within hours or even minutes.
This article provides information on payday loans, while highlighting 4 companies that offer the best payday loans for anyone who wants to apply online and get a decision today.
Top 4 Online Payday Loans
3. Dime Alley
Why did we select these 4 companies as the best payday loan companies?
We have selected the 4 best payday lenders based on the following:
Clear eligibility criteria – Our proposed lenders have very clear criteria, including being over 18 and having a social security number.
Fee Transparency – Lenders clearly state the cost of the loan. This is a representative example and the rate you are charged may be higher or lower depending on factors such as your credit score, income and other debts you may have.
No application fee – The companies do not charge any fees to apply and completing an application will have no impact on your credit score.
Same day loans – Subject to further verification, if your loan application is approved, you can receive funds in your bank account the same day of application or within 24 hours.
Data protection – Your data is protected when you apply through a secure server and your information will not be sent to other lenders or third parties without your permission.
Follows the guidelines – The payday loan industry in the United States is highly regulated and listed companies maintain the highest standards by adhering to these regulations.
What is a personal loan?
A payday loan is a type of short-term financing that involves borrowing a few hundred dollars, often used to make someone wait until the end of the month when they get their paycheck from work. These products are offered by private companies, lenders, startups and apps, and regularly help those looking for bad loans.
The average payday loan is around $300, which is transferred from a lender to the customer’s bank account in a lump sum. Payday loans typically last between 14 and 30 days, with the entire loan and interest often paid in full on the borrower’s next payment date.
What are the eligibility criteria for an online personal loan?
• Being older than 18
• Have a social security number
• Be employed with a minimum income of $500 to $1,000 per month
• Have a bank account, an email address and a mobile phone
• Be able to pay reimbursements
How much does a payday loan cost?
Based on an example of borrowing $500, this will cost you $46.23 in interest for 2 weeks, or $92.27 in interest for 4 weeks, or $273.95 in interest on top of that for 12 weeks.
This is based on a representative 500% APR rate (Source: Pheabs.com) and the longer you keep your loan open, the more interest accrues.
The interest rate and APR you are charged depends on several factors, including your age, credit score, income, residency status, and other outstanding debts. While the 300% to 500% APR rate is offered to around 51% of payday loan customers, this may vary depending on your situation.
How do refunds work?
A payday loan is usually repaid in full on the client’s next pay date, which is usually the last business day or Friday of the month.
Refunds are collected from the lender via an ACH authorization which automatically collects payment from the customer’s bank account (not directly from the employer).
Some payday loans are repaid in monthly installments, with customers having the option to repay over 3, 6, 9, or 12 months, or more depending on the lender and loan amount.
You always have the option of repaying your loan early and there is usually no charge. The amount is calculated on a daily interest rate, so if you have the loan open for 14 days, you will pay 14 days of interest.
What are payday loans used for?
• Emergency room
• Car repairs
• Credit card bills
• Medical bills
• Household repairs
• Funeral expenses
• Child expenses
Can I get a payday loan for bad credit?
Yes, it is possible to apply for a payday loan with bad credit, with the majority of lenders being open to all sorts of stories. Typically, if a customer had a perfect credit score, they might consider a personal loan or a credit card, so payday lenders realize that their customers are more likely to have fair or poor credit histories. .
To qualify, you need a stable income and a commitment to repay your loan on time. Although you may have missed payments in the past, you could improve your financial situation and start paying things on time – and the lender will recognize this and help you get the funds you need.
Are payday loans guaranteed for approval?
Secured payday loans are unlikely as there is usually a series of credit checks and financial capability checks to ensure a customer is suitable and can afford to repay their loan without falling into financial hardship.
However, suppose your loan is not approved. In this case, alternative products can be recommended to suit your needs, whether it’s a title loan secured by your car, a home loan or working with a credit union.
Is it possible to get payday loans without a credit check?
Suppose you are looking for payday loans no credit check. In this case, it is also unlikely, as running credit checks is one of the first things lenders do to determine customer eligibility.
One way to get a loan without a credit check is to use an alternative product where credit scoring is not taken into account. For example, title loans, pawnbrokers, or loans secured against your home that take the value of your property or collateral against traditional credit checks.
But even for these products it is still common for the lender to check your credit score and if there is a long history of missed repayments or bankruptcy this could make it difficult to get a loan and you may have to be contacting a professional to help you get your finances back on track.
What happens if I can’t repay my payday loan?
Not repaying your loan on time can lead to late fees, additional interest, and negatively impact your credit score.
Additional charges will be added if you do not speak to the lender and explain your situation. You should therefore contact the loan company as soon as you have problems, as they may be able to freeze interest, delay repayment, or put in place an arrangement to spread repayment over a longer period.
Some payday lenders in the US will offer extensions or rollovers to people who are struggling to repay and this can be helpful but it can also lead to increased interest and for many it becomes a loan that builds up and they can’t afford it. stopped.
It is very rare to be sued for an unpaid payday loan, unless you have accumulated a huge amount of overdue debt for some time. Likewise, you will not go to jail for an unpaid loan.
Is a payday loan right for me?
If you have a one-off emergency and your payday is a bit too far away, getting a payday loan can be a quick way to borrow money – often much faster than a traditional bank or credit union. .
When you use a payday loan you want to have a clear repayment strategy in mind and know that you can afford to pay it back and that you are not just using the loan to pay off other debts as this could cause a spiral of debt.
Although effective, this type of financing is more expensive than options such as credit cards or borrowing from family and friends.
But if you’ve thought about your repayment and have a regular income, you can use a payday loan to pay a bill, make a major purchase, and find yourself in more financial control once everything is paid off and sorted!