Payday loans are an easy way to get extra cash when you need it. These short-term loans are helpful when you cannot wait for your next paycheck. While instant payday loans make it easy to get your hands on cash now, they can be risky. So how do you know whether an instant payday loan is right for you?
What are instant payday loans and how do they work?
Instant payday loans are short-term loans you pay back with your next paycheck. The application process is easy, and credit checks are usually not required. While rules vary by state, you can generally borrow up to $500 with a payday loan.
Payday lenders can automatically withdraw funds from your bank account when the loan is due. Or give the lender a post-dated check to be deposited on your loan’s due date.
While instant online payday loans give quick cash access, they often charge high interest rates and fees. You can avoid late fees when you repay your loan on time. If you cannot pay what you owe by your next paycheck, you can quickly find yourself buried with more fees.
What are the costs associated with instant payday loans?
High interest rates and expensive fees often accompany instant payday loans. But you can find some 0% annual percentage rate (APR) options. Read the loan agreement and understand the cost before you take out a payday loan.
Fees vary depending on the lender. For example, you could be charged $15 for every $100 you borrow. So, if you take out a $300 payday loan you may owe $345 when the loan is due.
Some lenders let you roll over what you owe if you cannot pay your loan back when it’s due. Some lenders require you to pay the fees due before you can roll over your loan. Using the example above, you would pay the lender $45 in fees to roll over your $300 payday loan. But rolling over what you owe will cost you. Since you borrowed the money again, you could incur another $45 fee.
You may also pay a fee if you are late with your payment or have insufficient funds in your bank account. Some lenders charge fees if you load funds onto a prepaid card. You could be hit with fees as you use the card, check the balance, or call customer service.
What does the instant payday loan repayment process like?
The lender may request authorization to automatically withdraw the funds from your bank account when the loan becomes due. If you take out an instant payday loan in person, the lender may accept a post-dated check, which is deposited into their account when the loan becomes due.
How to obtain an instant payday loan with no credit checks
To get an instant online payday loan, follow these steps:
Research payday loan companies
Not all payday loan companies are the same. Before you borrow money, verify that the lender holds a license to operate in your state. Read online reviews and ratings with the Better Business Bureau to learn more about their reputation.
To narrow down your choices, compare each lender’s interest rate and how much the loan will cost you in actual dollars. Ask about how you should repay your instant payday loan. Find out what your options are if you cannot pay back what you owe with your next paycheck.
Check eligibility requirements
Eligibility may vary based on the lender; however, most require the following:
- Must be at least 18 years old
- Have valid identification
- Verification of income from a job
- Hold an active account at a bank or credit union.
Gather your documents
You will need to supply paycheck stubs from your employer to prove your income. You will also need your Social Security number, identification, and bank account information to apply.
Review terms and conditions
Carefully read the terms and conditions before taking out a payday loan. Ensure you understand what fees you will be charged, when your loan is due and the repayment terms. If you are concerned that you may not be able to pay your loan in full when it is due, find out what the lender charges to roll over what you owe.
Submit your application
You can apply for an instant payday loan online with no credit check. Some lenders have storefront locations where you can submit your application in person.
Most payday lenders give you an answer within minutes. If you complete your application online, the lender may require you to speak with a customer service representative before disbursing the funds.
Pay off your loan ASAP
When you take out a payday loan, make sure you can pay it back in full without taking out another loan. If you don’t have enough money, you could be in a debt trap if you roll over what you owe.
Access Cash When You Need It
Instant online payday loans are an easy way to get cash quickly when you need it. The application process is simple, and typically, you can get your funds within one business day. However, instant payday loans usually charge high interest rates and fees. Also, you might be required to t pay your loan in full from your next paycheck to avoid costly fees.
What are the best online payday loans?
Do your research to find the best payday loan that is right for you. Typically, the best payday loans have low interest rates and minimal fees andcome from reputable lenders licensed to loan money in your state.
Are online instant payday loans safe?
Online instant payday loans can be safe when you work with a reputable lender who is licensed in your state and takes steps to keep your data safe. It is always best to do your own research before making a decision.
How many instant payday loans can I get at a time?
This can vary from lender or state. Some states let you have two instant payday loans at one time if they are from different lenders.