Payday loans online and Instant paycheck lending solutions
In the modern economy, there are many different types of financing products available to consumers. Mortgages, auto loans, and credit cards are just a few of the most widely used products. A gap does exist, however, for those needing very short-term financing and credit may not be the best. Although some types of installment loans may be available, such loans may be difficult to obtain and can also take considerable time to secure. Many have found the answer, in what’s called a payday advance.
What Exactly is a Paycheck Advance Solution?
Payday loans are exactly that: loans made until your next pay date. Although the borrower will typically look to borrow funds until their next check, some loans may be repaid before or after that time arrives. These types of loans are referred to as weekly or biweekly advances due to the fact that they are very short-term in nature. Loans are typically 14 days in length and are most commonly made for amounts ranging from $100 to $1000. Time frames and amounts may vary by lender. Rules differ from state to state.
Because of their speed and lax requirements, instant pay date advances typically have a higher APR than other personal loans or credit cards. And because they are regulated at a state level, you’ll find that short term, bi-weekly loan interest rates, terms and laws vary, depending on where you live.
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What are 1-2 Week Loans Used for?
These loans can be used for a wide variety of purposes and are usually intended to fill a very short gap in funding for someone who is running short before their paycheck. Some of the most common reasons for someone to need a salaried loan include emergency home or auto repairs, medical expenses, or to keep utility services on. Typically this is for someone who goes over their monthly budget may require a short term advance to buy food or other necessities. Whatever the case may be, this type of loan can potentially provide a solution.
How are Payday advances different from other types of credit?
Short: This type of lending is specifically dedicated for short term solutions. Paycheck advance loans are designed to be short-term solutions to financial shortfalls. You generally won’t find a loan that extends beyond six months, although terms differ by state.
Accepting of good and poor credit: Lenders often do not conduct a credit check, though you need to provide proof that you can repay the loan — prove a steady income (Pay Stubs), and have a bank account in good standing.
High Rates/Fee’s: High-risk unsecured lending for emergency situations. Due to their short-term nature and accessibility, Hourly or salaried worker advance across the board come with much higher interest than other forms of credit. Most states regulate how high these short APR’s are allowed, but some are still very steep when compared with other types of credit. Be sure to take into account the full cost before you apply.
Small Amounts: These speedy loans are designed for a couple weeks. Pay what you need to and payback the note. Do not mess around with this type of loan or any loan for that matter. These are made because your in a pickle and can be a very good tool to help get out fast. Again, how much you can borrow depends on the state you’re in, but you can typically borrow between $100 and $1,000. With our nationwide partner network, loan availability is available in 44 states.
Does a Paycheck Loan Require Collateral?
This type of loan is considered an “unsecured” loan and therefore does not require that any collateral be posted in order to borrow. Lenders rely on your employment to pay back the loan and will want to make sure that your income is enough to cover the loan repayment.
Are Payday Loans Safe?
The short answer is yes. These instant options are made by lenders who look to provide a valuable service for their customers. That being said, however, some lenders may be more reliable and reputable than others. For this reason, it is very important to perform some due diligence and to compare lenders before taking out a loan. Some of the key things to look for when choosing a lender include length of time in business, customer reviews, and costs.
Beware of online providers and companies claiming they provide instant transfers or same day solutions in as little as 3 minutes. These are usually scam filled online companies who are over promising and typically under deliver. Also beware of anyone who requests you send money to them first. If they are a legitimate online provider of lending, you will never have to do this. Typical lender approvals through our nationwide partner network happens in minutes, and funding happens through direct deposit with-in 24-48 hours.
Are Paycheck Advances popular ?
According to finder.com, some 12 million Americans take out some type of small salary advance each year. Those between the ages of 25 and 49 tend to use these loans the most, and the typical income for borrowers falls into the $15,000 to $50,000 per year range.
How do you get a Payday Loan?
Advances are available from both brick-and-mortar stores as well as from online lenders. Requirements can vary from lender to lender, but generally speaking you will need to provide the following information:
Eligibility criteria
You are at least 18 years old.
You earn a minimum income — around $200 a week is typically required.
You have a job with steady income (or benefits).
You get paid by bank deposit, payroll, W2, etc (just not in cash/under the table money) daily, weekly or monthly. Can show pay stubs for employment.
Application checklist
- Government-issued ID and a Social Security number, alien registration number or Individual Taxpayer Identification Number.
- Personal contact information, such as your address and phone number.
- Evidence of your income. Employer information
- Details of your checking account. Account number will be required.
- Your bank’s routing number — a nine-digit number at the bottom of your checks.
Do Lenders run a Credit Check?
Lenders typically will not run a hard credit check. A hard check means your credit information is pulled and the inquiry will show up on your credit file. Other lenders may perform what’s called a soft check. Unlike a hard pull, a soft pull will not have any effect on your credit score. Some lenders may not perform any credit check at all, but rather will rely upon your income and work history. This is what makes these types of loans great for good credit and poor credit backgrounds.
Does a paycheck loan affect your credit score?
It is essential to note that most lenders do not check the credit history of the borrower and they do not report payments as either. Although a credit bureau from the 3 major credit bureaus (Transunion, Equifax, Experian) may be pulled, typically lenders will use other forms of background checks beforehand. Bad credit payday loans and quick cash advances are typically not reported to the credit bureaus unless you default. Personal loans and Installment loan options are made for larger amount’s requiring good or bad credit with longer terms, and they do typically report these types of loans to the credit bureaus. We offer these as well. All you have to do is select an amount above $1,000 and start the process.
How Long Does the Process Take?
Obtaining a cash advance online or in a store can be done quickly and conveniently. Oftentimes, a decision is available within minutes of the application submission, and funds may be available the same day or the following day.
What do the Terms Look Like?
The terms and conditions will vary a little from lender to lender. Many lenders will charge a specified amount per $100 borrowed. Some states have capped the amount that can be charged from $10-$30 per $100 borrowed. A fee of $15 per $100 borrowed on a two week loan is almost 400% on an annualized basis.
Payday rates are higher for numerous reasons. Not only because they may be available to borrowers with less-than-stellar credit, but lenders must also cover their costs of doing business which can include things like real estate, website maintenance, legal counsel, collection practices, non-payment, and other overhead.
Due to the higher rates of interest, it is imperative to repay a payday advance as quickly as possible.
Payday lenders can be compared online from the comfort of your own home or office. Taking the time to comparison shop could potentially save you a significant amount in fees or interest. Due to the costs associated, you will want to pay back the loan as soon as possible. The sooner the funds are paid back, the less you will pay in interest. The best options will offer the most favorable terms, it is your job as a borrower to go out and find them.
How is a Two Week Loan Repaid?
When a payday finance solution is taken out, the method of repayment should be clearly and thoroughly spelled out. Most lenders will require either a post-dated check or your bank information with an Automated Clearing House (ACH) authorization. If a post-dated check is used, the lender simply deposits the check on the agreed upon repayment date. In the case of an ACH authorization, the lender would simply initiate an ACH withdrawal from your account on the specified due date. Some lenders may request you return to the store in person to pay by check. This path can be time consuming. This is often done so that additional loans or services may be offered.
What if a Borrower is Unable to Repay the Loan?
Despite the best of intentions, sometimes things come up and a borrower may be unable to repay the advance on the agreed upon date. The most important thing is to stay in touch with your lender. Ignoring phone calls and requests for payment will only make things worse. Lenders want to be repaid, and do not want customers to default. They may be willing to work with you to make alternative arrangements to get the debt paid. If you fail to pay and do not stay in contact with the lender, they may try multiple attempts to withdraw the funds from your bank account if you authorized an ACH payment. This can result in insufficient funds fees and additional interest charges. Eventually, failure to repay the loan can result in court proceedings and wage garnishments. It can also have a negative impact on your credit by reporting a collection.
Is a Paycheck Loan the Same as a Signature Loan?
This type of loan has key differences from a signature loan. Payday loans are made with a very short-term time horizon in mind. Signature loans, on the other hand, may have varying lengths and different terms. Whereas the first options may be done without a credit check and require employment verification, a signature loan is typically made based off of nothing but the borrower’s strong credit score.
What are the Pros and Cons of Payday Finance Products?
Positives of short online advances
Convenient: You don’t have to interact with anyone at a storefront or in person. Start with our secure form and have an answer in minutes.
Fast: Your time is your money. Completed submissions and approved applications are scheduled for direct deposit into your personal checking or savings account with-in 24-48 hours, making the online option the quick way to go.
No collateral: This is an unsecured loan. You do not need to put up any assets and no money down. The process is simple. Submit through our secure form. Enter in your personal information including banking details. Once approved, your money is then scheduled for transfer to your local banking institution through account and routing numbers.
Negatives of short online advances
Costs: Payday loans have a knack for their high percentage rates — 300% or more, depending on how much you borrow and your repayment terms. Education is key to understanding the costs associated with the loan you take on. When you take one out, do your best to avoid roll overs. Pay it back on time.
Unscrupulous Lenders: Some payday lenders operate online to avoid state by state regulations. Make sure the lender you’re applying with is trustworthy, and verify with your local state agencies that they’re operating legally.
Debt: Borrow modestly by repaying responsibly. Make sure you don’t take on a loan you can’t afford. With paycheck loans, you often need to repay the entire loan amount on your next pay date. Confirm that you’ll have sufficient funds left over to budget for the rest of that pay period.
These finance products differ from other lender products in their application process and criteria. You typically can apply within minutes online and get a response quickly. To be approved, you’ll need to meet the lender’s income eligibility criteria and provide documentation.
What are some alternatives to these finance solutions?
A short-term financial hardship does not necessarily mean you have to resort to a payday loan. There may be other ways of obtaining short-term financing if necessary. One way is to take out a cash advance against a credit card account. This can be done at an ATM or in a branch office of the issuer. This money does not come free, however, as the issuer will charge a cash advance fee in addition to an interest rate that is typically higher than the rate charged for purchases.
Another option may be to apply for a signature loan. This type of loan may be repaid in installments and requires no collateral. A signature loan does require a very strong credit score, however, and may be unobtainable for many borrowers.
Another type of loan may be obtained with a credit score, employment information, and some form of collateral. Car titles are often used as a form of collateral, and other forms of property may also be accepted by some lenders.
Last but not least, try out our installment loan options or a personal loan through our secure network. Any amount over $1,000 will parlay into these two products. Good, Average, and Poor credit types welcome. These are longer term options with fixed monthly payments.
Is the Industry Regulated?
The industry is regulated and additional regulations could potentially be seen in order to prevent predatory lending practices. In the U.S., the Consumer Finance Protection Bureau, or CFPB, is tasked with regulation of payday lenders. In the U.S., regulations can vary from state to state. Some states have caps on the amount of fees or interest that may be charged, while other states have banned payday lending entirely.
The Importance of Finance Education
As with any other financial decision, an educated customer is a good customer. These types of instant solutions can potentially provide a bridge in short-term financing needs, but can also turn into an extremely expensive method of financing if the borrower defaults. Getting properly educated about the potential benefits and risks associated with this type of lending is the first step in deciding if a paycheck loan is right for you. Oftentimes, with careful examination, another solution to a temporary financial strain may be found.
Why start the process with OnlineCash4Payday?
For more than a decade, we has been helping to connect consumers with competitive quick advance online lending options. We offer the highest funding amounts available.
How Our Application Process Works
We strive to provide instant approval times with our lender network up to $1,000 and we have streamlined our application process with our partner lenders so you can receive your funds in 24-48 hours or less once approved. Start with our secure form to the right of our company site and have an answer in minutes.
Consumer Education & Awareness
We encourage applicants to handle online decisions responsibly, and we help to provide lending articles and best practice budgeting ideas to help combat recurring debt habits.. Review these consumer tips before applying to be sure you are making an informed decision.
References:
https://www.nerdwallet.com/blog/loans/payday-loan-default/
Nerdwallet.com, June 8, 2018
CreditKarma “Hard and soft credit inquiries: What they are and why they matter” 20 November 2018
https://www.creditkarma.com/advice/i/hard-credit-inquiries-and-soft-credit-inquiries/
https://en.wikipedia.org/wiki/Payday_loan
Wikipedia.org
https://www.thesimpledollar.com/best-payday-loan-alternative/
Thesimpledollar.com, October 19, 2018
Finder.com “Direct deposit short term loan” November 8, 2018
https://www.finder.com/direct-deposit-payday-loans
https://www.checkngo.com/faq/payday-loan-faq/#toggle-id-3
Checkngo.com
https://www.bankrate.com/glossary/p/payday-loan/
Bankrate.com
