Small online payday loans are short term loans given by direct lenders through online platforms. They are designed for people who are faced with unexpected expenses or cash shortage between paydays. These loans do not require traditional credit check instant approval process so it’s open to borrowers with bad credit history or bad credit scores. The loan approval process is fast, often instant approval and cash is disbursed to the borrower’s bank account. Flexible repayment terms allows borrower to pay the loan with their next paycheck or in installments over time depending on the loan provider’s terms. These loans can be an option for those with steady income who need quick access to small cash loans for payday advance loans or unexpected expenses.

Features

• Fast Application. Applying for payday loan online is easy and fast. Borrower can fill up the loan request form on the lender’s website.

• No Credit Check. Many online payday loan providers offer loans online with no credit check and instant approval so it’s open to people with bad credit scores or bad credit history.

• Unsecured. Small payday loans online are unsecured, borrower doesn’t need to provide collateral such as car or home.

• Loan Fees. These loans have loan fees, which may vary from lender to lender. Borrower should review and understand the loan fees before agreeing to the loan terms.

Pros and Cons

Pros

1. Fast Cash. Online small payday loans gives you fast cash, often within hours of approval, which can help you address unexpected expenses or emergencies.

2. No Collateral. These loans are unsecured, borrower doesn’t need to risk losing assets such as car or home if he can’t pay.

3. Easy Application. Applying for payday loan online through direct lender is easy and can be done at home, no need to visit physical payday loan store.

Cons

1. High Interest and Fees. Payday loans have high interest and fees compared to traditional loans, if not paid quickly can be very costly.

2. Short Repayment Term. Borrower must pay the loan fast, usually within weeks or next payday. This short term repayment can be tough for those with limited financial flexibility.

3. Debt Cycle. Due to high costs and short repayment terms, borrower may get trapped in debt cycle where they borrow to pay previous loans and end up in long term financial problems.

How to Apply for Payday Loan?

1. Choose A Lender. Choose a reputable payday lender, online or physical location, make sure they comply with state laws and federal regulations.

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

3. Fill Up The Application. Fill up the payday loan application form with personal details, employment information and loan amount. Submit online or in person.

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

5. Get The Loan Proceeds. Once approved, get the loan proceeds directly to your bank account or prepaid card account, usually on the same business day.

Requirements

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

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

2. Active Checking Account. A valid and active bank account is needed for loan proceeds to be deposited and for lender to withdraw repayments.

3. Proof Of Income. Borrower needs to show proof of regular income, such as pay stubs, to show he can repay the loan.

4. Valid ID. Borrower must present valid ID, which is social security number, to verify his 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 proceeds directly to your active checking account, usually on the same business day.

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

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

4. Check. Few payday lenders may give you a check for the loan amount, you can then cash or deposit to your bank account.

Payday Loan Rates

Payday loan rates usually involve 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 translates to an annual percentage rate (APR) of 400% for a 2 week loan. For example if you borrow $300, you will 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 while 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 District of Columbia have banned it altogether.

18 states and District of Columbia have usury rate caps, often at 36% APR, to curb high-cost payday lending. States like Nebraska, Hawaii, Illinois and New Mexico have recently enacted such caps, which is a growing trend to regulate payday loan rates.

The highest payday loan rates are in Texas (662%), Missouri (652%) and Delaware (639%). On the other hand, 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 period to prevent debt traps.

Small Payday Loans. Apply Online