Payday Loans & Advances
Payday loans are unsecured loans for people that have no credit to good credit. Payday loans are also referred to as:
- Cash advance loans
- Poor credit loans
- Payday cash advances
- Unsecured personal loans
Since payday loans are not backed by collateral (something of value that the lender can claim if the loan is not repaid) and payday loan borrowers tend to have poor credit or no credit history, payday loans are considered high-risk loans.
To make up for this risk, lenders charge high interest rates for payday loans, making the payday loan an expensive loan. If you need additional information on payday loans, please use The Center For Responsible Lending.
Is a Payday Loan Right For You?
What is your credit like? You can get a free credit report once a year online. The US Department of Justice has a list of approved credit counseling agencies that can help you understand your credit report for free.
If you can wait, start doing some credit repair to improve your credit score and get better loan rates in the future. You should also start saving for emergencies (3 to 6 months pay) to ensure you don't have to use a payday loan if it's not the best choice.
If you decide to take on a payday loan, make sure you understand the risks involved.
What Are Payday Loans?
Payday loans are short-term loans for small amounts of money. People with a poor credit history can borrow $100 to $1000 and must pay back the loan by their next payday. Payday loans have higher interest rates, an average 365% Annual Percentage Rate (APR) , that makes the loans costly. The payday loans are meant to provide people with an advance until their next paycheck.
How Payday Loans Work
Borrowers can apply for a payday loan online or at a nearby payday loan store.
You must be able to prove the following:
- You have a job and receive a paycheck regularly (not temporary employment)
- You are 18 years old or older
- You must have a minimum $1000 monthly net income
- You have an active checking or bank account
- You are a US citizen
- You have a valid phone number and email address
Search for payday loan lenders online.
Compare payday loan lender rates, terms and borrowing limits to find the best lender for you.
Choose a payday loan lender and apply online.
Apply online to the lenders that offer you the best terms and rates.
Wait to see if you are approved for the payday loan.
Some online payday loans are approved quickly, with funds deposited as soon as the next business day. You may also be denied for a payday loan - for a variety of reasons.
Decide how to repay the payday loan when it is due.
On the due date, the money you owe will be withdrawn electronically from your bank account. You can also renew or roll over the loan if you are unable to pay it. Beware of the hazards of postponing payment on your payday loan; if you continue to postpone your payment dates, you may be subject to additional and expensive fees.
Resources for Pay Day Loans
Fill out a quick an easy registration form for a payday loan where your form will be seen by hundreds of lenders and you will be contacted by the ones that are interested in servicing your loan. We have hundreds of loan providers in our directory of payday lenders.