We are no stranger to the mid-month cash crunch! Besides, financial emergencies can hit us anytime- that too unannounced! While long-term financial solutions can be a lengthy process, a short-term loan will come as the Messiah during such a term. In this context, payday loans online on the same day or bad credit personal loans guaranteed approval of $5,000 can give you a quick fix for your urgent financial needs with instant funding. But, before you start reading, know a few crucial things about the star of the topic- “PAYDAY LOANS.”
What is Payday Loan?
Typically based on your earning, a payday loan is a short-term borrowing facility. Though it is easy to get it, lenders charge high-interest rates from borrowers. When we say the credit score is high, we mean it is typically a portion of your next payday check. The loan interest, given by the party lender, also goes by the name “check advance loans” or “cash advance loans.”
- Know that no collateral is needed to get payday loans.
- Due to the absence of collateral, these short-term loans become a type of unsecured personal loan.
- As lenders charge high interest rates, these loans are often regarded as predatory lending.
- Besides credit difficulties, borrowers may find hidden provisions leading to added fees.
- The direct payday lenders are generally small-credit merchants. They often own physicals stores.
- Borrowers can get onsite credit applications and approval.
If you do not want to go to a direct lender, you can consider getting payday loans online. Are you considering getting one for yourself? Before you hop into anything, make sure to seek credit counseling first. This way, you will have a clear idea about what you are getting into.
Know The Loan Process:
In the basic payday loan process, a short-term unsecured loan is provided by direct lenders. Typically, you, i.e. the borrower, must repay the borrowed loan on their next payday. To get the loan, the borrower needs to furnish pay stubs from their employer- unlike any long-term financial solution. This will indicate the borrower’s, i.e., your current level of income. Your direct lender will fix the loan principal on your predicted short-term income percentage. Even though no collateral is needed, your wage can be considered as collateral.
You can go to the lender’s physical office or choose to get online payday loans.
Here’s how it goes for physical loan lenders:
- You will have to write a post-dated check of the full amount of the loan plus fees to the direct lender.
- Remember, if your cheque bounces, you will have to pay additional fees or an increased interest rate. Sometimes, both are implemented at the same time.
- Generally, the borrower needs to visit the lender in person to repay their borrowed money. Otherwise, the lender can redeem the cheque on their own.
If you are choosing to get a payday loan online, you can chuck all the hassle and complete the short-term loan process online- from the comfort of your home! After the online application, your money will be transferred directory to your bank account. Yes, you guessed it right- the loan repayment will be withdrawn from the account after you get the next paycheck.
What will happen if you fail to repay your loan?
It is often seen that customers with credit difficulties fail to repay their loans on time. If you fail to repay the loan within the deadline set in your loan agreement, you can get the loan rolled over. But, your credit score will continue to grow even higher. When you “roll over” your payday loan, you must pay a finance charge, including an additional finance charge on the new total, along with the original loan amount.
How can you get your loan faster?
When a financial crisis hits suddenly, the main concern in your mind is- “how will I get the loan faster?”
How fast you will get your payday loan depends on the funding option you choose to meet your short-term financial needs. Here are the options for you:
- Instant Funding: YOu will get the loan on your debit card.
- Direct Deposit: Money will be deposited directly to your bank account. However, the funding time will depend on the day and the time your application gets approved. You will get your loan money on the next business day.
- Pick Up Cash: All you have to do is visit direct payday lenders and hard, cold cash!
If your debit card qualifies, it is the quickest way out for you.
The easiest online payday loan options for you:
When it comes to quick short-term cash needs, luckily, many direct lenders are offering fast loans. Likewise, you will find several lenders offering cash advance loans online. You can finish the online application with just a few clicks, and that too within minutes.
If you want to get a fast loan online, here are a few options to try:
- Speedy Cash
What will you need to get a Payday Loan?
It would help if you had the following things ready to get your payday loans:
- A steady income source
- A checking bank account
- Photo ID
When is it a good idea?
Getting online payday loans is a temporary solution for short-term financial needs. Hopefully, this short-term loan will cover you until your next payday.
You can consider getting a payday loan online when you have the following conditions on your plate:
- Urgent bills for rent, food, or utilities.
- Urgent medical bills.
- Unexpected auto repairs
- Costly fees to avoid Non-Sufficient Funds (NSF) fees or overdraft fees.
Know the limitations:
- If you do not pass the full-payment test, your borrowing amount will be restricted to $500.
- The direct payday lenderscannot take your car as collateral.
- If you already have a short-term financialloan, your lender will be restricted to give you any further loan.
- The lender cannot extend the loan if you have already paid at least one-third of the owed principal on each extension.
If you are in Texas, you need to know the following:
Texas has made payday loans online legal. The best part is that the Texas finance code for such short-term loans is pretty relaxed. While there is no set maximum loan amount, the lender is restricted to ensure the financial protection of the borrower.
The main mandates for both online and storefront lenders:
- It is mandatory for direct lendersto disclose all Principal Payoff Options.
- All lenders must be licensed.
Here are the Texas finance code mandates on the loan amount and credit scores.
- Lenders can charge only $1 per $5 for a cash advance lower than $30.
- A service fee of 10% of the loan amount is allowed for any loan amount between $30 and $100.
- For amounts more than $100, $10 is the maximum fee.
- For loans less than $35, a handling charge of $3.50 is levied.
Here are the loan terms:
- The term for a $100 or less loan, is set for one month for each multiple of $10 of the cash advance, or 6 months.
- For a loan of more than $100, the loan term is for one month for each multiple of $20 of the cash advance.
Here are a few important contacts:
- Fraud and threat- 1210
- Loan to return- 189
- Not exiting debt- 809
- Charges from account- 491
- Lender available- 198
- Loan not received- 62
- Not requested loan- 225
A few alternatives for you:
If you are worried about encountering identity theft or any other problems with getting an online loan, you must know that these online cash providers take care of your needs with full confidentiality and security.
If still, you want other alternatives, you can check out the following to get fast money:
- Family or friends: This is undeniably the fastest and safest option. While there is nill to very low interest rates, it is the least expensive way to meet urgent cash crunch.
- Advanced paychecks: Y0u can ask your employer to issue your next paycheck a little in advance. The cash can be deducted on the next payday.
- Pawn Shops: You can get urgent short-term loans through pawn shops. If you have a valuable item, take it to the pawnshop, where the pawnbroker will determine your item’s value. Upon evaluation, they will give you a cash offer between 25% and 60% of your item’s resale value. If you fail to repay this loan, the pawnbroker can sell off your item.
- Credit Cards: Credit Card to the rescue! With some credit cards, you can withdraw a cash advance within the available credit limit on your credit card.
- Cash Advance Apps: With advancing technologies, many cash advance apps have found their way to us. You can easily borrow money without any payday loan fees or interest rate charges against your paycheck.
- Credit Counseling: There are several nonprofit credit counseling facilities. You can seek credit counseling to have an affordable monthly budget.