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Installment loans with competitive rates from a top-rated direct lender.
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A payday loan is a short-term form of credit that can get you cash quickly, even if you have bad credit or a low income. Traditionally, these loans had to be repaid in one lump sum on the borrower’s next payday. But today, you can also find lenders that offer payday loans with terms as long as six months.
Because of their speed and lax requirements, short-term loans typically have a higher APR than other personal loans or credit cards. This means you could end up paying back twice as much as you borrowed — or more — in interest and fees. And because they’re regulated at a state level, you’ll find that the interest rates, terms and laws vary depending on where you live.
How do payday loans actually work?
Ask yourself these questions before deciding on a payday lender. If you answer no to any, you might want to consider borrowing from someone else — or at least do a little more research.
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Though payday loans can be used for a wide range of purposes, they’re generally designed to cover unexpected expenses. Common uses include forgotten bills, car repairs, medical expenses or any other sudden event. You shouldn’t use payday loans to fix long-term issues in affording your credit, for day-to-day expenses or for a big-ticket item like a car or house.
You need… |
Could a payday loan help? |
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| $350 for a doctor’s appointment |
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| $250 for mechanical car repairs |
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| $220 for an overdue phone bill |
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| $575 for a broken water pipe repair |
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| $900 for a traffic ticket |
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| $6,300 for a secondhand car |
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| $4,000 for a family vacation |
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| $2,000 for a rental deposit |
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Yes, some lenders offer loans without requiring a bank account. The two main options available are in-store loans and prepaid debit card loans. You can apply in-person or online for an in-store loan and receive your money fairly quickly by picking it up at the store.
Lenders offering prepaid debit card loans issue a card and then load the approved amount onto the card for you to use as you please. Some may even be able to load money onto an existing prepaid debit card. They often come with fees, however, so make sure to read the terms and conditions before you swipe.
Back to topProbably not. Since payday loans have such short loan terms — sometimes as little as two weeks — there’s not enough time for interest to add up to a profit. Lenders tend to charge flat fees instead.
You might have heard that cash advances come with a high APR, but that isn’t because of a high interest rate. APR is an expression of the loan’s total cost as a percentage — both interest and fees. When it comes to payday loans, a high APR is a reflection of the loan’s high fees, not a high interest rate.
Many payday lenders offer the option of paying a fee to lengthen your loan term, which they call renewing or rolling over. The fee usually isn’t what you have to worry about, however: It’s the mounting interest over a longer term that can make your loan impossibly unaffordable.
Loan renewal and rollover fees are where many borrowers fall into a cycle of debt, and they’re illegal in many states. Try to avoid it as much as possible.
When you apply for a short-term loan, you’ll typically see the amount you want to borrow and the amount you need to repay — which could be anywhere from $10 to $30 for every $100 borrowed. So the lender may advertise that their fees are around 15% to 30%.
The lender is also required to clearly display the loan’s APR online so that you’re able to compare it to other types of credit that have repayment terms of a year or longer. Because payday loans come with such short repayment terms — usually between two weeks and a month — it can bring the APR up quite a bit.
For example, if you take out a $100 loan, pay a $15 fee and your repayment term is two weeks, that results in an APR of around 390%.
Payday lenders generally don’t send your information to the main credit reporting agencies — Equifax, Experian and TransUnion. However, they may send information on your loans and repayments to smaller credit reporting agencies, like Teletrack or LexisNexis, that can be accessed by mainstream lenders when you are applying for credit.
The main danger to your credit scores is repayments. If you’re late on or miss repayments, your credit score could be negatively affected. Your lender may choose to take legal action to bring in unpaid loans or pass your loan on to a debt collection agency, which will affect your score.
In short: It probably won’t help your credit, but it could hurt.
Payday loans differ from other lenders in their application process and criteria. You typically can apply for a cash advance online and get a response quickly. To be approved, you’ll need meet the lender’s eligibility criteria and provide documentation.
Meeting these eligibility requirements does not guarantee that you’ll be approved for the loan.
Though required documents differ by lender, you’ll generally need to provide:
There’s not sure-fire way to guarantee that your application will be accepted. Asking yourself these questions can help you find a lender that’s right for you and give yourself the best chance of getting approved.
Can I get a short-term loan if I’m on welfare?
How you repay your loan depends on the lender you apply with. For online payday loans, you need to provide an ACH authorization for the lender to take the repayment amount from your checking account on the due date. If the lender also has a physical loan office, you may be able to write a personal check to make your repayments.
Make sure you understand your repayment terms before signing the contract. Some lenders may only set up renewal or roll over fees on the day your loan is due, meaning you can extend your loan term instead of paying it off at that time. In some cases, you may get three months or more to repay your short-term loan.
When money is tight, the last thing you need is pressure to divert your hard-earned cash into paying excessive fees and services. Before you take out a payday loan, consider your alternatives.
Remember: A payday loan is a high-cost financial product. If possible, exhaust all of your other options before you apply for one.
Find a short-term loan alternative in your state
When APRs reach over 1,200%, it’s glaringly clear that these seemingly quick fix-it loans are anything but. State regulations are put in place in order to protect consumers. Racketeering laws, criminal usury statutes and even a state constitution are used to cap loan rates.
When a state updates its laws, it may be a not-so-subtle hint that lenders weren’t exactly operating above board. Ultimately, these protections are put in place to help borrowers avoid a debt spiral that payday lenders set them up for. Even former President Barack Obama spoke out against payday lenders during his presidency, accusing them of being predatory and trapping borrowers in a cycle of debt.
Before you dive into a product marketed as a one-stop financial Band-Aid, consider your alternatives. Though they aren’t significantly better, installment loans can come with slightly less egregious terms and more manageable payments. While it may requires a level of humility and openness, asking to borrow from friends or family could be another possibility. Better damaged pride than ruined finances.
You can also look into alternatives to borrowing. Social services may be available in your area to those in need. Even if you aren’t sure whether you qualify, it’s worth researching local assistance programs for food, housing and other necessities. These services may also be able to help you identify and address any structural issues that can keep you in debt, such as a lack of a budget or overspending.
Though you may not have a lot of extra time, a side gig could too be an option. Ideas include driving with a ride-share service like Uber, walking dogs, participating in research studies or even taking online surveys to earn more cash. If you find yourself regularly needing small amounts of money to last you through the week, consider exploring ongoing freelance opportunities in your area of expertise — Upwork and Fiverr are a few places to start.
Payday loans have both a high rate of default and repeat borrowing, which could trap you in a debt cycle and even more financial distress than when you started. By researching your many options, you may be able to avoid getting caught in dangerous lending while still getting the money you need.
Auto title loan. A short-term loan secured that uses your car as collateral, usually up to 50% of your car’s value. You hand the car title either to your lender or a third party. If you aren’t able to repay it, your lender gets your car.
Balloon payment. A large payment at the end of a loan, common on short-term loans with interest-only repayments.
Bounced check. A check that was written for more than the amount available in the account it’s associated with.
Cash or check advance loan. A type of payday loan that requires you to repay it in full once you receive your next paycheck.
Check fraud. When someone writes a check they know is going to bounce. Payday lenders can sue you for fraud if you provide them with a postdated check that bounces.
Deferred deposit. Also, post-dated check. A check that’s dated sometime in the future, usually when your loan is due.
Collection agency. A company hired by lenders to get borrowers to pay what they owe on an unsecured loan that they are either delinquent on or have defaulted on.
Credit check. When a lender reviews your credit score and history to evaluate your track record on repaying debts. Many payday lenders don’t run a credit check.
Default. When a borrower misses several loan repayments or has given up on attempting to repay a loan.
Electronic transfer. When funds are moved directly from one bank account to another. Also referred to as an ACH transfer.
Finance charge. A fixed fee that you pay in exchange for being able to borrow a payday loan.
Loan fees. Charges added to your loan on top of interest, including application fees, origination fees and money transfer fees. Your loan’s APR is an expression of your loan’s interest and fees in a percentage.
Loan shark. An illegal lender who typically charges high interest rates.
Maturity date. Also, due date. The day you’re required to completely repay your loan, in addition to interest and fees.
Military consumer protection. Active members of the military and veterans have additional consumer protections when it comes to short-term loans. Laws vary by state and can include caps on APRs, maximum loan amounts and restrictions on borrowing before deployment.
Post-dated check. A check with a date written sometime in the future, sometimes used as collateral for a payday loan.
Risk-based pricing. When a lender adjusts (usually raises) the interest, fees or loan amount because a borrower is seen as likely to have trouble repaying a loan.
Sent to collections. When a lender transfers a loan with overdue payments to a collection agency to recover the amount owed.
Subprime lender. A lender willing to work with borrowers that have poor credit, typically charging high interest and fees.
Unsecured loan. A loan that isn’t backed by collateral, meaning that the creditors can’t come after your house, car or any valuables if you can’t repay your loan.
Usury laws. Local laws that cap the APR on certain loans.
Wage garnishment. When a lender is allowed to take money directly from a borrower’s paycheck after a court order. Typically after a borrower is sued by a lender for defaulting on an unsecured loan.
Can I receive a cash advance loan from a lender who accepts award letters from SSDI BUT I have no job, bank accounts unemployed, horrible credit, no collateral and no job history ? Can my award letter get me a cash loan within a hour to pay due bills immediately while waiting for award checks from SSDI.
Hi Saronda,
Thanks for getting in touch with finder. I hope all is well with you. :)
Some lenders do consider Social Security Disability Insurance as a form of income. However, please note that you might have fewer options. You can find some of your options on this page. On that page, there’s a table that compares your options. You will also learn more how to get a loan when you’re in welfare through that page.
I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.
Have a wonderful day!
Cheers,
Joshua
Can i pawn my car to get cash from u guys
Hi Sheila,
Thanks for your reaching out.
Please note that finder is a comparison website and general information service. While we do not represent any company we feature on our pages, we can offer you general advice.
You may check the list of options on the page you are viewing. Simply click on “Go to site” and “More” for you to have a comparison of the lenders and for you to choose the best one that would best suit your needs.
Please be reminded to check if payday loans are available in your state by scrolling down on the page then hover your mouse to the state where you live to see the result.
I hope this helps.
Best regards,
Judith
Can i borrowed some money today I need
Hi Earma,
Thank you for contacting finder. We are a comparison website and general information service, we’re more than happy to offer general advice.
You may refer to this page for options that may suit your needs. You may review and compare the offers available on the table. Once you have selected one, you may proceed by clicking the green “Go to Site” button.
I hope this helps.
Cheers,
Danielle
Could I borrow $100,000. for few days and how much would it be the interest? I repay in few days.
Hello Hilda,
Thank you for reaching out.
Short term loans are usually for smaller amount of loans. If you would be borrowing $100,000, you may compare your personal loan options through this page. Please review the criteria, details of the loan product you’ve chosen and contact the lender directly to discuss your eligibility. Once you’ve chosen a loan and you think you are eligible, you may click on the ‘Go to site’ button to be redirected to the lender’s main website and apply from there.
Hope this helps.
Cheers,
Marlou
I have plied for oak phone and all that and they’re up to $1000 I don’t need $1000 I need two thousand dollar loan and I can’t find it
Hi Deedee,
Thank you for your inquiry.
Lenders offer loans of up to $2,000, you may want to consider the loan options here.
I hope this information has helped.
Cheers,
Harold