Is an instant decision payday loan instant? And when will I get my funds?
A payday loan — also known as a cash advance, a short term loan or a cash loan — is designed to give you access to funds in a short amount of time. Some lenders even offer instant decisions, instant approval and instant processing for payday loans. But what do these terms really mean, and how long does it really take to get your loan money?
This guide explains what you need to know about payday loan processing times so you know when to expect the proceeds of your loan. Installment loans with competitive rates from a top-rated direct lender.
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What does “instant decision” mean?
Payday lenders that advertise loans with “instant decisions” usually let you know the outcome of your application within a few minutes or a maximum of one hour after the application is submitted. These lenders use technology to speed up the online application process, allowing them to give you an outcome in an “instant.” If more details are needed, or if the application needs to be assessed by a person rather than automated, the final decision may take longer.
The time it takes for you to get the money from this type of loan is another matter altogether. If you apply at a storefront, you can get the money almost as soon as you accept the loan contract. With an online application, you’ll need to ensure all your documents have been submitted and the contract is signed. It’s only after these steps are completed that the lender will transfer your funds, usually the next business day.
How payday loans work?A payday loan, also known as a cash advance loan, is a short-term personal loan (typically $500 or less) that usually must be repaid within two weeks to a month. The repayment date is determined by your pay schedule. Because payday loans come with steep finance charges, it is not a long-term solution, but a temporary fix to an unexpected financial situation. Rules and regulations for payday loans vary from state to state, and are even not permitted in some states.
Short term loans you can apply for
How quickly will I receive my loan?
While the majority of lenders can give you an instant decision, the turnaround time for funding is a major point of difference. Take a look at the table below to see how long it will take for your loan to be funded from these payday loan lenders.
|Lender||When you will receive your loan|
|100 Day Loans||Usually 1 business day, but there can be same-day funding.|
|Achieve Lending||Varies acccording to the lender you are matched with.|
|Advance America||If you apply online and the application is approved before 8 p.m. EST, it’s usually funded the next banking day. If you apply in-store, the loan can be funded within 10-15 minutes.|
|CashAdvance.com||Usually 1-2 business days.|
|CashNetUSA||If you apply and are approved by 9 p.m. CT Monday-Thursday, you can receive your funds the next business day. If you apply and are approved between 9 p.m. CT Thursday and 7 p.m. CT Sunday, you can receive your funds on Monday (unless it’s not a banking day).|
|Cash Central||Loans approved before 7:45 p.m. EST Monday-Thursday are usually deposited into your bank account the next business day. Applications submitted on Friday, Saturday and Sunday before 7:45 p.m. EST will be funded the following banking day. Applications submitted on Sunday after 7:45 p.m. will be funded on Tuesday.|
|Check City||If you apply online, it takes 1 business day, and if you apply in-store it takes about 15 minutes. If you apply online and are approved on weekdays by 7 p.m. MT or by 8 p.m. on Saturdays, you can be approved on the same day. If you apply after these hours or on Sundays or holidays, your application will be processed on the next business day and you will receive your funds the day after that.|
|Check Into Cash||Loan applications processed before 7 p.m. during business days are funded on the next business day. If you apply online, you can pick up your approved funds in-store.|
|LendUp||If your loan is approved by 5 p.m. PT Monday-Friday (excluding holidays), you will generally receive your funds the next business day. Exact funding time depends on your bank.|
|LoanMart||1 business day|
|NetLoanUSA||It varies depending on the lender you’re approved with.|
|Personal Money Store||Loan processing and transfer times vary between lenders, but you can typically receive your approved funds on the next business day.|
|Speedy Cash||Online loans take 1 business day to be processed. You can also visit a store to pick up your cash or have it loaded onto a prepaid debit card.|
|TrustedLoanNetwork||It varies depending on the lender you’re approved with.|
|USA Payday Cash||You can receive your approved funds in your account by the next business day.|
What should I consider when choosing an instant decision payday lender?
Consider the following factors to make sure you pick the right instant payday lender for your circumstances:
- Direct lender or loan matching service. Direct lenders review your application themselves and may or may not approve you depending on their eligibility criteria. Note that the approval time varies depending on the lender, so “instant decisions” may not be available.
- Lender’s reputation. Verify the lender’s details online to make sure it has a good reputation. The internet gives you an easy means to find out what previous borrowers have said about any payday lender. If you find any reason to be wary, you should move on to another lender.
- Application process. How quick and easy is the application process? A typical payday application takes 15 minutes or less to complete, provided you have all the required information close at hand. Some lenders may require you to fax statements or details, which may take more time.
- The time it takes to disburse funds. Even with instant approval payday loans, you need to find out how much time the lender will take to give you the money you need. With an in-store application you should receive your approved funds on the spot. If you apply online, you might have to wait until the next business day, or longer.
What features come with instant decision payday loans?
- Interest and fees. State laws govern the annual percentage rate (APR) that payday lenders can charge. This includes the interest, as well as other applicable fees. However, payday lenders in any given state will charge different APRs and fees, so it pays to compare your options.
- Maximum loan amount. This is another factor that depends on state regulations, but not all lenders provide loans up to the maximum allowed amount for first-time borrowers. In some cases, you might have to build up a history with a lender or at least repay your first loan on time before you qualify for the maximum loan amount.
- Loan term. The time you have to repay the loan also depends on state laws. While some states let you rollover or renew your loan, others don’t. Whether or not you can get on a repayment plan also depends on the state of your residence. Check the applicable rules for your location and remember that the longer you take to pay the loan off, the more you’ll end up paying in fees. Typical payday loans are due in full within 2-4 weeks.
- Repayment flexibility. Your lender should let you pay your loan off ahead of time without charging any additional fees or penalties. While payments via checks and direct debit are commonly accepted, some lenders let you pay using a debit card as well.
Cautions to avoid with instant decision payday loans
Payday loans attract unusually high fees in comparison to other types of credit, so explore all your options before you decide to apply. If you think you might have problems in paying the loan back on time, avoid taking it in the first place. Paying the loan back after its due date can lead to higher costs.
When you apply for a payday loan and are approved, make sure you go through the loan contract carefully. This step gives you a clear picture of how much you might have to pay in different circumstances. Finding out about the payday lending laws in your state ahead of time can also help protect you from unfair lending practices.