A $400 payday loan, also known as a $400 dollar loan or small dollar payday loan, is a short term financial help option to help borrowers cover unexpected expenses or emergency situations until their next payday. Payday loan lenders and direct lenders offer these loans to people with bad credit or poor credit scores who may not qualify for a traditional personal loan from a bank or credit union.

To get a $400 loan, potential borrowers must fill out a loan request form or an online loan application form, providing valid contact information and meeting the basic requirements set by most lenders. The requirements for a 400-dollar payday loan usually include a steady income, proof of ID and an active checking account. Unlike traditional banks, online lending services do not do a hard credit check

Features

1. Personal Loan Alternative. Payday loans are an alternative to traditional personal loans for bad credit scores or no credit.

2. Bad Credit Friendly. Direct lenders cater to bad credit borrowers, to those with poor or bad credit who may not qualify for traditional loans.

3. Loose Credit Score Requirements. Unlike traditional lenders, direct lenders have loose credit score requirements, so bad credit scores can get a loan.

4. Easy Loan Application Process. The loan application process for payday loans is quick and simple, minimal requirements and soft credit check.

Pros and Cons

Pros

1. Bad Credit Friendly. Direct lenders offer small dollar payday loans to bad credit scores or no credit, so these loans are more accessible than traditional loans from banks or credit unions.

2. Fast Funding. Once a direct lender approves a loan request, loan funds are deposited into borrower’s account within one business day, for medical bills or unexpected expenses.

3. Minimal Credit Checks. Unlike traditional lenders, direct lenders do soft credit checks, which don’t affect your credit score and have loose credit score requirements, so bad credit borrowers can get a loan.

Cons

1. High Interest Rates. Although direct lenders have competitive interest rates, payday loans have higher interest rates than traditional personal loans or installment loans, so it’s more expensive to borrow.

2. Short Repayment Period. Payday loans have short repayment period, usually 2 weeks to 1 month or until your next payday, which may not give some borrowers enough time to pay back their loan comfortably.

3. Debt Cycle. The combination of high interest rates and short repayment period can trap borrowers into debt cycle where they need to take out another loan to pay back their existing payday loan and it’s more financial burden.

How to Get a $400 Payday Loan?

1. Choose A Payday Lender. Select a reputable payday lender, online or in-store, who is state licensed and federally regulated.

2. Prepare Required Documents. Gather the required documents, pay stub, social security number, bank account information and proof of income.

3. Fill Out The Application. Fill out the payday loan application form with personal info, employment info and loan amount. Submit online or in person.

4. Review The Payday Loan Agreement. Review the payday loan agreement carefully, interest rates, fees, repayment terms and due date.

5. Get Loan Funds. Once approved, get the loan funds deposited into your bank account or prepaid card account, usually same business day.

Requirements

According to the U.S. government’s Consumer Financial Protection Bureau (CFPB), to qualify for a loan most payday lenders require:

1. Age. Applicants must be at least 18 years old, although some states require 19 or 21 years old.

2. Active Checking Account. A valid and active bank account for deposit of loan funds and for lender to withdraw repayments.

3. Proof Of Income. Borrowers need to show proof of regular income, pay stubs to show they can repay the loan.

4. Valid ID. Borrowers must show valid ID, social security number to verify their identity.

How to Get the Money

1. Direct Deposit. The most common is direct deposit into your bank account. Once your payday loan application is approved, the payday lender will deposit the loan funds into your active checking account, usually same business day.

2. Prepaid Debit Card. Some payday lenders offer to load the borrowed amount into a prepaid card account. Good for those who don’t want to use their bank account.

3. Cash. In some cases, especially with in-store payday lenders, you may get the borrowed amount in cash. But this is less common than direct deposit or prepaid card.

4. Check. A few payday lenders may give you a check for the loan amount and you can cash it or deposit it into your bank account.

Payday Loan Rates

Payday loan rates are fees ranging from $10 to $30 per $100 borrowed depending on state laws and loan limits. A typical fee is $15 per $100 borrowed which translates to an annual percentage rate (APR) of around 400% for a 2 week loan. For example if you borrow $300 you would need to pay back around $345 by next payday. These rates are much higher than other types of loans such as personal loans or secured personal loans.

Payday lending is allowed in 37 states, 11 states including Connecticut, Maryland and New York have strict regulations or interest rate caps that limit or prohibit payday lending. Some states like Arkansas and North Carolina have repealed their payday lending laws and others like the District of Columbia have banned it altogether.

18 states and the District of Columbia have usury rate caps, often 36% APR, to curb high cost payday lending. States like Nebraska, Hawaii, Illinois and New Mexico have recently passed such caps, it’s a growing trend to regulate payday loan rates.

The highest payday loan rates are in states like Texas (662%), Missouri (652%) and Delaware (639%). The lowest rates are in Oregon (140%), Maine (228%) and Iowa (247%). Some states like Washington and Virginia have additional regulations to limit the number of payday loans or extend the repayment period to prevent debt traps.

$400 Payday Loans. Apply Online

FAQs