Online payday loans are a quick fix for when you need cash fast. Unlike traditional loans these are online payday loan platforms offered by direct lenders. They are for people with bad credit or poor credit history, short term loans paid back by your next payday. Instant payday loans can be approved in minutes, no credit checks required. Loan amounts are smaller, for emergencies like car repairs or medical bills. Direct lender payday loans are simple but you should compare to find the best online payday lender for you.

Features

• Accessibility. Online payday loan companies, apply and manage online.

• Speed. Instant payday loan approval, in minutes or hours.

• Short Term. Short term loans, paid back by your next payday.

• Loan Amounts. Smaller loan amounts, for emergencies like medical bills or car repairs.

Pros and Cons

Pros

1. Accessibility. Online payday loans are available online, no credit checks from major credit bureaus or collateral required.

2. Fast Approval. Instant loans, approved in hours. Ideal for emergency situations where cash advance loans are needed.

3. Flexibility. You can apply for different loan amounts depending on your needs, from small amounts to cover short term loan expenses like medical bills or car repairs. Best online payday loans.

Cons

1. High Interest Rates. Online payday loans have higher interest rates than personal loan lenders, can be expensive if not paid on time, even if considered best payday loans online.

2. Short Repayment Period. Short term loans are due by your next payday, can be a financial burden if you can’t pay the full amount on time.

3. Debt Cycle. Due to short term and high costs, borrowers especially with bad credit or poor credit score may find themselves trapped in a cycle of borrowing to pay off previous bad credit payday loans and end up in long term financial instability.

How to Apply for an Online Payday Loan?

1. Choose A Lender. Pick a reputable lender, online or in store, that complies with state and federal laws.

2. Gather Required Documents. Get your pay stub, social security number, bank account info and proof of income.

3. Apply. Fill out the payday loan application with personal info, employment info and loan amount. Apply online or in store.

4. Review The Agreement. Review the payday loan agreement, read 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 the 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 that you:

1. Age. You must be at least the age of majority, which is 18 in most states, some states require 19 or 21 years old.

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

3. Proof Of Income. You need to show proof of regular income, like pay stubs, to show you can repay the loan.

4. Valid ID. You must present valid ID, which includes social security number, to verify your identity.

How to Get the Money

1. Direct Deposit. The most common way 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 the same business day.

2. Prepaid Debit Card. Some payday lenders offer to load the borrowed amount onto 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 can 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, you can then cash or deposit 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 borrowing limits. A typical fee is $15 per $100 borrowed which is an annual percentage rate (APR) of around 400% for a 2 week loan. For example, if you borrow $300 you would need to repay around $345 by next payday. These rates are much higher than other types of loans like 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 ban 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 enacted 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%). On the other hand, states like Oregon (140%), Maine (228%) and Iowa (247%) have lower rates. Some states like Washington and Virginia have additional regulations to limit the number of payday loans or extend the repayment terms to prevent debt traps.

Payday Loans. Apply Online