If you are in dire need of extra funds, you can try exploring online payday loans. These have a short loan term that typically only lasts one or two weeks. The idea is to apply for a small loan amount with minimal credit checks, have the money credited to your bank account in just a matter of minutes, then pay the dues when you receive your next paycheck. Hence, the name payday loan.
Without a doubt, payday loans have one of the most appealing payment terms. It allows borrowers to get cash fast without having to go through a lengthy, time-consuming application process.
The lack of a strict credit check makes it even more enticing, especially for those with bad credit and are having trouble qualifying for conventional installment loan options. This type of cash loan won’t even require applicants to submit their credit scores.
Note: Your payday lender may require you to disclose your source of income and prove you have the capacity to make payments. They might also contact your HR so make sure to have their email address ready.
Now, there are dozens of short-term lenders online. Which one do you go for? Bear in mind that there are many sketchy lending networks that trick applicants into revealing sensitive information by offering seemingly good loans online. You need to be careful.
Having trouble sorting through the bad and good loans? Head over to AnyCredit! We have an expert review team that regularly publishes guides and articles on how to safely deal with an online lender.
With more than 800 physical stores scattered across 22 states, Check Into Cash is undoubtedly more popular than any other online lender on the market today, and for a good reason! They have a very simple application procedure. Clients automatically turn to them for overall easy, hassle-free payday cash loans.
Plus, their simple and direct loan computation makes payments easier. Unlike other payday lenders, they won’t trick clients into hidden fees and increasing rates. All charges are clear and upfront.
There’s really no clear downside to applying for a payday personal loan with them. Yes, you can get better rates elsewhere. However, the safety and security of your application are not as guaranteed as to when you’re with Check Into Cash.
Payday loans generally have a quick process, but CashNetUSA is on another level. The application literally takes minutes to complete; you’ll get an instant decision after finishing, and the funds will be transferred to your bank account by the next business day—or within 24 hours.
The process takes less time if you apply early in the morning. Assuming it’s not a holiday or weekend, you can have the full loan amount transferred to your bank account on the same day you qualify for the loan.
The biggest drawback here is that most CashNetUSA loans have high-interest rates. With an annual interest rate of 449%, the daily percentage rate will fall at 0.012301%. With that in mind, we strongly encourage borrowers to look for another payday lender if they need more than a few hundred bucks.
In fact, at an annual interest rate of 449%, you’ll end up paying $6.15 dollars for daily charges on a $500 loan. That means that if you get paid every 15 days and you plan on paying the full loaned amount in the same timeframe, you’ll end having to pay back around $92.25 for interest alone. The amount will double if you’re paying after one month.
If you’re looking to get a payday loan but are concerned about your credit profile dropping and potentially hurting your chances with other credit bureaus, turn to Rise Credit. They offer competitive interest rates at a DPR of 0.008192%.
Once you qualify for a loan at Rise Credit, you can expect the funds to be credited to your account in just one to two business days. Not as fast as CashNetUSA, but very impressive nonetheless.
Rise Credit offers great interest rates for a brand that offers payday loans. If you really want to improve your bad credit, however, we suggest going with another institution or lender that would offer you a better rate on their loans. Even credit card companies have exponentially lower interest rates.
But if payday loan lenders are your only option, then by all means go with Rise Credit. As we said earlier, not many lenders or companies can offer you the same interest rate on their payday loans.
What sets LendUp apart from the average lender that offers loans online is that they focus on customer relations. In fact, repeat clients get better rates. That’s why they encourage borrowers to make small, repeat loans rather than large ones that are generally harder to pay off.
Plus, they also hold financial literacy seminars. LendUp goes above and beyond to help their clients not just meet short-term financial needs, but also work toward financial freedom.
A payday loan is definitely a simple, efficient solution for borrowers who need cash ASAP. In just a matter of minutes, you may be able to qualify for $500 to $5,000 without even having to show lenders your credit score.
However, keep in mind that it’s also very risky. These loans are backed by very high-interest rates as well as strict terms and conditions that may negatively affect your credit score and long-term credit profile.
This is not to say that payday loans should be avoided. The best approach here is to be composed, grounded, and logical. Compare payday loan terms with other loan options such as an emergency personal loan, credit card cash advance loan, or a credit union loan. You can also try exhausting your existing credit cards.
Also, don’t take out a payday loan for something unnecessary like a new phone, designer clothes, or luxury bags. If you do decide to apply for a loan, make sure the money is for essential purchases or emergency expenses only.
Before signing up for any type of loan, it’s best to compute the daily and monthly payments yourself beforehand. Don’t just rely on what lenders provide.
A payday loan isn’t the only way to secure funds fast. Check out this report by CNBC where they explain how to avoid getting trapped in high-interest-rate payday loans.
Looking for alternatives to payday lenders? Check out AnyCredit! We have multiple in-depth articles about installment loans if you feel getting quick cash through short-term loans isn’t such a great idea.
