Payday loans are short term loans to help you pay bills until your next payday. Payday lenders require a post dated check or permission to withdraw from your bank account. Many payday lenders are online and in store. The payday lending process is credit check free so even with bad credit you can borrow. You will need to provide pay stubs, social security number and income information to sign a payday loan agreement. The loan is then deposited into your bank account or loaded onto a prepaid debit card.

Features

• Short Term Loan. Payday loans are short term loans, due in 2 to 4 weeks.

• Loan Amount. Small dollar loans, $100 to $1,000.

• Repayment. Repayment is one lump sum on your next payday.

• Interest Rates. High interest rates and fees, much higher than a credit union or bank personal loan.

Pros and cons

Pros

1. Quick Cash. Payday loans are a fast way to borrow, cash available same business day.

2. Minimal Requirements. Just need a pay stub, social security number and proof of income, no credit check required.

3. Convenience. Online lenders make it easy to apply from anywhere.

Cons

1. High Interest Rates And Fees. Payday loans have very high interest rates compared to personal loans and other payday loan options.

2. Single Payment Repayment. You must repay the loan in one lump sum by the due date, which can be tough.

3. Financial Protection Risk. If you don’t repay the loan on time you will have additional financial obligations and harm to your financial protection.

How to Apply for a Payday Loan?

1. Choose A Payday Lender. Select a reputable payday lender, online or in store, to make sure they are state licensed and federally regulated.

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

3. Fill Out The Application. Fill out the payday loan application 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 Proceeds. Once approved, get the loan proceeds deposited into your bank account or prepaid card account, 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. Be 18 or older. You must be a legal adult to enter into a payday loan agreement.

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

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

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

How to Get the Money

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

2. Prepaid Debit Card. Some payday lenders offer to load the loan 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 lenders, you can get the loan in cash. But this is less common than direct deposit or prepaid card.

4. Check. A few lenders might give you a check for the loan, which you can cash or deposit into your bank account.

Payday Loan Rates

The general payday loan rates are a fee that ranges from $10 to $30 for every $100 borrowed, depending on state laws and maximum borrowing limits. A common fee is $15 per $100 borrowed which is an APR of nearly 400% for a 2 week loan. For example, borrowing $300 would be $345, assuming $15 fee per $100 borrowed, by your next payday. These rates show how costly payday loans are compared to other types of borrowing.

Payday Loans. Apply Online

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