A payday loan is best described as a very short-term loan that is necessary to help you cover urgent cash requirements until your next paycheck. Most people pay down their online payday loans with only one payment on their next pay date. You must confirm the exact repayment date with your lender prior to accepting your loan.
What Are Payday Loans?
A payday loan is best described as a very short-term loan that is needed to help you cover urgent cash needs until your next paycheck. These loans are regulated by each state and normally range between $100 to $500, but some states allow up to $1,000. These are fee-based loans which means there are set fees based on the amount you borrow, so you know exactly what you will pay back if you pay on time (highly recommended).
Payday loans are not for everyone. They can cost you much more than you expected if you are unable to pay them back on time. Before you request one, you should understand how they work and the risks you may be taking.
Common Features of Payday Loans
- These loans are for small amounts, and most states set a maximum payday loan size of $500. While some states allow loans up to $1,000, most allow loans above $1000. However, such loans exceeding $1000 are often called installment loans and have different eligibility criteria.A payday loan online is often repaid in a single payment on the borrower's next pay date or when income is received from another source such as a pension plan, Social Security, annuity, or disability payment. The repayment date is usually from 2 to 4 weeks from the start date of the loan.In order to repay your loan, you will be required to write a post-dated check for the loan plus the fees, or you will have to authorize your lender to electronically remove the funds from your bank account.You should never request an online payday loan if you are not certain whether you can meet the repayment terms.
What Are Some Common Ways to Get Payday Loans?
The 2 most common options to get a payday loan are: drive to a storefront and apply, or simply go online through any device and request an online loan. Most people opt for online payday loans because it saves them time and money for gas as well as improves the odds of loan approval. This is because many online services have several direct lenders to whom they can refer your loan request, thus increasing your odds of approval.
How Do Online Payday Loans Work?
The process is incredibly easy and fast to complete. Go online and complete a loan request form and submit it. This often takes 3-5 minutes. Get an answer within seconds after submission. If approved, get connected directly to your lender, who will review your loan terms and conditions and answer your questions. If you agree with the terms, your cash will be deposited in your bank account within one business day.
Basic Requirements to Get a New Payday Loan
There are some very basic requirements that you need to fulfill in order to get a payday loan:
- You must be 18 years of age or older.You must be a U.S. citizen or legal resident.You must provide your legal name, address, and contact information.You must have a source(s) of income from employment or alternate sources, e.g., annuity, disability, retirement accounts, etc.You must have an open checking account.
What Are the Costs Involved in a Payday Loan?
The costs associated with payday loans are set by state laws individually. The fees generally range from $10 to $30 for every $100 borrowed. The average payday loan costs $15 to $20 per $100 that is borrowed.
Here is an example: you borrow $200, and your direct lender charges you a $15 fee for every $100 borrowed or $30 for this loan. You will owe $230 when the loan is due to be repaid. You should always repay the loan when it is due. Otherwise, you will be subject to additional fees, which will ultimately add up.
Payday Loan Repayments
Most people repay their loans with a single payment on their next pay date. You need to verify the exact repayment date with your lender before agreeing to your loan.
Depending on your direct lender, you may have a couple ways to pay your loan:
- A postdated check,A check on your next pay date,Online through the lender's website,A direct debit from your bank account (this is the most common method),Another form of credit like a prepaid credit card.
Why Choose Us for Payday Loans Online?
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Payday Loan FAQs
Is a Payday Loan Worth the Risk?
A payday loan can solve an urgent need for money in emergency situations. If you have other options to get quick cash, you should use them. If not, then a payday loan may be a great solution. If you have checks that will bounce, then the $35 per check NSF fees will likely be greater than your loan fees. Or if a utility bill is becoming overdue, the fees, penalties, new deposits, etc., will far exceed your loan fees. However, make sure to always look at all options before requesting a payday loan.
Read more: What are Payday Loans
