Are you considering a payday loan while you wait for your next check? It’s not uncommon for payday loans to be used as a last resort, but did you know there are better alternatives that may be available to you?
Payday loans are costly, and in Florida, you could be responsible for up to 304% in APR charges plus a 10% finance charge just for borrowing. See how payday loans stack up against MoneyLion’s 0% APR alternative.
Options For Payday Loans in Florida
A traditional payday loan works by a lender providing cash up front in exchange for a post-dated check in the amount of the loan plus fees and interest charges. Not everyone is eligible for a payday loan, so be aware of these requirements and stipulations.
Requirements
You must be a Florida resident.
The minimum age for a payday loan in Florida is 18 years old.
There’s no law that explicitly states you need to be employed to qualify for a payday, loan but lenders will require you to have a steady history of deposits from an outside source into your bank account if you are not a W-2 employee.
Credit Affects
When you apply for a payday loan, lenders don’t usually pull your credit score but this doesn’t mean your credit score can’t be impacted. If you miss or make late payments the lender can report any delinquencies to the credit bureau which will impact your credit score negatively. Making on-time payments, however, will not positively affect your score.
Number of Loans
You can only have one payday loan at a time. There isn’t a limit on how many loans you can receive in a calendar year, but there is a 24-hour mandatory wait period between any two consecutive loans.
Max Loan Amount
The maximum amount you can receive in payday loans in Florida is $500, not considering the fees.
Loan Terms
A minimum loan term of 7 days and a maximum loan term of 31 days. You are provided a 60-day grace period if you are unable to repay the loan on time, contact your lender as soon as possible. It’s also worth noting that lenders cannot press criminal charges in Florida for a borrower who is not able to repay their loan.
Payday Loan Alternatives in Florida
Forget the high interest rates that payday loans come with and seek out alternatives that will still give you what you want: advanced cash fast. MoneyLion offers a couple of those options – Instacash and Credit Builder Loans.
Instacash
Instacash by MoneyLion is different than a traditional payday loan because you can take advantage of a 0% APR (annual percentage rate).
Instacash will never affect your credit, it’s completely online via mobile app, and you can use your mobile phone. You can take up to $250 in advances at a time with Instacash.
Let’s see what the difference would be if you were to take out a $200 loan with each option.
Loan Type | Amount Borrowed | APR | Fees | Repayment Amount |
|---|---|---|---|---|
Payday Loan | $200 | 200% | $25 | $262.50 |
Instacash | $200 | 0% | $0- $3.99 | $200 – $203.99 |
In this scenario, you’ll spend just about $60 more with a payday loan to borrow the same about from MoneyLion through Instacash. To see Instacash fee options, click here, you could avoid the delivery fee altogether!
Credit Builder Loans
MoneyLion’s Credit Builder Loans lets you reap several benefits. You’ll be able to take out a loan up to $1,000 and help increase your credit score at the same time. MoneyLion will report your on-time payments to Experian, Equifax and TransUnion. More than half our members raised their score by up to 27 points within 60 days. Plus you’ll get access to Instacash cash advances and other premium banking features.
In order to participate in MoneyLion’s Credit Builder Loan, you’ll have to become a MoneyLion member first. Download the app, create an account, apply for Credit Builder Plus, and you’re on your way to borrowing instantly.
Smart Lending in Florida
Be careful when considering any cash advance or payday loan. You should go into it fully understanding your repayment terms and conditions so that you don’t wind up missing a payment and hurting your credit score. Based on fees and ease of use, MoneyLion’s alternatives to cash advance can be a better, less riskier option. Check out what MoneyLion has to offer today!
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Disclosures
Instacash® is an optional service offered by MoneyLion. Your available Instacash Advance limit will be displayed to you in the MoneyLion mobile app and may change from time to time. Your limit will be based on your direct deposits, account transaction history, and other factors, as determined by MoneyLion. Expedited delivery requires Turbo Fee. See Instacash Terms and Conditions for more information and eligibility requirements.
Credit Builder Plus membership ($19.99/mo) unlocks eligibility for Credit Builder Plus loans and other exclusive services. This optional offer is not a Pathward product or service. A soft credit pull will be conducted which has no impact to your credit score. Credit Builder Plus loans have an annual percentage rate (APR) ranging from 5.99% APR to 29.99% APR, are made by either exempt or state-licensed subsidiaries of MoneyLion Inc., and require a loan payment in addition to the membership payment. The Credit Builder Plus loan may, at lender’s discretion, require a portion of the loan proceeds to be deposited into a reserve account maintained by ML Wealth LLC and held by Drivewealth LLC, member SIPC and FINRA. The funds in this account will be placed into money market and/or cash sweep vehicles, and may generate interest at prevailing market rates. You will not be able to access the portion of your loan proceeds held in the credit reserve account until you have paid off your loan. If you default on your loan, your credit reserve account may be liquidated by the lender to partially or fully satisfy your outstanding indebtedness. May not be available in all states. Credit Reserve Accounts Are Not FDIC Insured • No Bank Guarantee • Investments May Lose Value. For important information and disclaimers relating to the MoneyLion Credit Reserve Account, see Investment Account FAQs and FORM ADV.
MoneyLion does not provide, nor does it guarantee, any third-party product, service, information, or recommendation. The third parties providing these products or services are solely responsible for them, as well as all other content on their websites. MoneyLion is not liable for any third party's failure with regard to those advertised products, services, and benefits. These advertised products and services may not be FDIC insured or bank-guaranteed, and may be subject to a different privacy policy than MoneyLion’s. You should check individual offers, products, and services to become familiar with any applicable restrictions or conditions that may apply. MoneyLion may receive compensation from third parties for referring you to the third party, their products or to their website.
Instacash is a 0% APR cash advance service provided by MoneyLion. Your available Instacash advance limit will be displayed to you in the MoneyLion mobile app and may change from time to time. Your limit will be based on your direct deposits, account transaction history, and other factors as determined by MoneyLion. This service has no mandatory fees. You may leave an optional tip and pay an optional Turbo Fee for expedited funds delivery. For a $40 Instacash advance with a Turbo Fee of $4.99, your repayment amount will be $44.99. Generally, your scheduled repayment date will be your next direct deposit date. An Instacash advance is a non-recourse product; you will not be eligible to request a new advance until your outstanding balance is paid. See Membership Agreement and help.moneylion.com for additional terms, conditions and eligibility requirements.