Is your payment date for your credit card bills getting closer? Are you in need of some quick cash to pay it and avoid late fees — or worse, lower credit scores? Well, if you need quick cash, payday lenders are always there to help.
Did you know that there’s a growing number of Americans with credit card debt? Excluding house mortgages, the average American has a personal debt of around $38,000. While some people do okay with paying their bills, not everyone has the ability to pay on time all the time.
Let’s not forget about the late fees and bounced check fees, too. Sometimes, it’s financial emergencies that also cause a sudden need for cash.
If you’re looking for payday lenders to get a payday loan from, we’ve got quick guide below on how you can find the best one.
How Does a Payday Loan Work?
Payday loans are short-term cash loans which use the borrower’s personal check or bank account. These lenders hold the money until the borrower’s upcoming payday. The loans and the finance charge get bunched together into a single sum, which is often on the agreed-upon payday.
Borrowers get their checks back when they pay the loan with cash. Depending on which state you are in, a payday loan can range in size between $100 and $1,000. The average term for payday loans is two weeks.
The interest rates on payday loans can cost 400% the annual interest (APR) or more. Lenders can charge you $15 to $100 for the borrowing fee or finance charges. Loans that have a two-week term may have interest rates from 390% to 780% APR.
It’s worth noting that loans with shorter terms have higher APRs. Also, states that don’t cap the maximum cost may have higher rates. Before you apply for a payday loan or any loan at all, check your state laws so you know what to prepare.
The requirements you will need often include an open bank account, a steady source of income, and identification. One of the benefits of a payday loan is that lenders won’t do a credit check before they approve you. Note that most payday loans are already made through websites and mobile devices.
Look for Flexible Payday Lenders
Most payday loans are flexible since they are only short-term. Even though payday loans are short-term, the best lenders will let you make an agreement on when you can pay it back. If not, then a good payday lender can at least come up with a compromise that works for both of you.
The important thing you must do is to pay them back as soon as you can. If possible, pay them back as soon as you get your next paycheck. The best thing to do is to close the account the soonest you could so you can avoid any unnecessary or extra fees.
Check Legislation and Caps on Interest Rates
It’s a fact that there are some lenders that may charge you high-interest rates. While they exist, you can avoid them if you’re smart about who you trust. One way to check is legislation.
Almost every state has laws in place to protect you from extreme payday loan interest rates and fees. Limits also exist on interest rates above a certain percentage. The number of application and other fees that a lending business can charge you are also limited.
These limits often depend on the state you are in. Find out what you can about the pertinent laws in your state. You may find it surprising how far a little bit of knowledge can bring you.
They Let You Qualify For a Higher Amount
Many payday lenders limit the amount you can loan, especially when you are a new borrower. However, when you keep a good record, there’s a high chance you can qualify for a higher loan amount. The key is to pay your first payday loan on time.
On your next applications, your payday lender can offer an increased limit. In time, you may even reach up to the maximum loan amount in your state. Note that they will still limit it depending on your salary and on the lending policy.
They Offer Quick Services
Speed is by far the most appealing advantage of applying for payday loans. To remain competitive, many payday lenders in the market offer quick services. That means no need for lengthy paperwork or a day of waiting for approval.
The application process for a payday loan is very easy. You need only a few requirements we mentioned above. Filling out the application for your loan only takes a few minutes as well as receiving the cash advance.
Often times, you can get your loan within the same day or on the next working day. Some lenders can even give you the funds within the hour if you give the needed details fast. With the speed of the process, you’d have enough time to get rejected and still get your funds within the day.
The Best Lenders Have a Very Convenient Process
When you apply for other, more traditional loans, you’ll have to do many other things. These may include having to meet up with a loan officer or waiting for your application to get approval.
Since almost all payday loans get conducted online, they offer the most convenience.
For example, Blue Trust Loans provide payday loans online with no credit check. It’s a paperless process, you could do it even when you’re at home, and you even skip the credit-checking step. It’s one of the reasons why many people prefer online lending companies.
Choose Only the Best Payday Lender
Payday loans are quick and convenient cash solutions in cases of emergencies. When it comes to money talk, it’s understandable that you want to find the best payday lenders. With this information, you can look for a good and trustworthy payday lender in your area.
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