Do you need fast cash? Maybe you are looking for an emergency loan or to consolidate debt. Whatever the reason may be, it’s easy to be attracted to loans.
However, while online payday loans are easy to get, and you can have the funds in your account the same day, there are many downsides to these predatory payday loan products that you should know about before applying.
Keep reading to learn more about how online payday loans and same-day deposits work, along with other viable options that are much better for your financial future!
How do online payday loans work?
Many states offer online payday loans to customers who need fast cash. The application process is straightforward and requests very minimal criteria to apply. You can usually finish applying within minutes, too! In most cases, you will receive a decision right away and can choose to accept or deny the loan offer on the lender’s dashboard.
If you choose to move forward, you will input your banking information which is where the lender will send your funds once the loan application is finalized, and withdraw payment when the loan becomes due. Some states will even allow you to take out more than one payday loan at a time.
Qualification criteria for payday loans
Wondering if you qualify for online payday loans same day deposit? Each lender has a specific set of qualification criteria, but you may be eligible if you:
- Are at least 18 years of age
- A citizen or permanent resident of the U.S.
- Have steady employment or a verifiable source of income
- Possess an active checking account in good standing
- Able to receive direct deposits
- A valid physical address
- An email address
- Working phone number
You might also be required to provide your Social Security number and a copy of your driver’s license or state-issued identification.
Loan terms
Each state that permits payday lending has strict laws regarding:
- The loan term– The loan terms are not flexible, meaning you have to pay it back in full by your next payday. However, some states require lenders to extend loan terms of 30 days or longer.
- Maximum loan amounts– Some states have a flat rate, while others have mandates that say the loan amount cannot exceed a set percentage of the borrower’s income.
- Interest rates– Predatory payday loan lenders will assess steep interest rates for their loan products, making it easy for clients to miss payments and become delinquent accounts.
- Loan rollovers– Loan rollovers are allowed in some states and prevent borrowers from defaulting on the loan or incurring fees from both your financial institution and the lender.
- Penalties and fees– If you do default on the loan, it could mean you’ll have to spend out-of-pocket money or sustain damages to your credit score if the delinquent account is sold to a collection agency.
Check with the banking division for your respective state of residence to learn more about the specific terms of available payday loans.
Credit impact
Payday lenders don’t check your credit. Instead, they are more concerned with your ability to repay than your creditworthiness. So, they incorporate exorbitant interest rates to offset the risk of you defaulting.
However, the issue is that these interest rates can be so high that it’s difficult for borrowers to pay off their loans, leading to more debt and additional fees. In fact, payday loan borrowers typically end up paying an average of $520 a year.
Be mindful that delinquent accounts can be reported to credit bureaus if the account is sold to a debt collector and you don’t make arrangements to pay it off. This ultimately negatively impacts your credit score.
Better alternatives to predatory payday loans
Before signing up for a loan that will cost you hundreds of dollars in interest rates, consider alternative ways to get the cash you need now. There are tons of easy ways to make cash quickly, like landing freelance gigs or selling items through Facebook Marketplace. There are even free ways to earn some money by working from the comfort of your own home!
If you need an easier way to get fast cash now without having to pay unfathomable interest expenses, consider a loan from MoneyLion. With 0% APR, MoneyLion has various options available and they don’t require a credit check.
Interest-free cash advances with Instacash
Let’s say you need cash now, but you’re not going to get your paycheck for another two weeks. If you head to your local payday loan provider, you’ll be able to borrow the cash but you will have to pay interest and service charges on top of the original balance.
With Instacash, we eliminate all of those excessive fees. With MoneyLion’s features, you can borrow up to $250 without paying any interest or fees through the Instacash feature. In addition, there are no minimum income requirements, so you can get approved even if you’re in between jobs and collecting unemployment.
If you have a bank account that is at least two months old and has a history of deposits, you may qualify. What if your credit isn’t quite up to par? MoneyLion doesn’t require credit checks to be eligible for an Instacash cash advance.
Ready to apply? Download the MoneyLion app to your mobile device and create a free account using your email address. After you answer a few quick questions, you’ll receive an instant notification telling you how much cash you can borrow. Once you accept the offer, your funds will show up in your bank account within a few minutes.
Credit Builder Loans with MoneyLion
Need a little or a lot more than $250 to find temporary relief? MoneyLion also offers Credit Builder loans up to $1,000. You’ll receive the cash you need immediately, and your payment history will help improve your credit score. Talk about a win-win situation!
Good credit isn’t required to qualify as there are no credit checks. In fact, MoneyLion’s Credit Builder Loans are an excellent option for those who need a first-time loan with no credit.
All you need is an active checking account that’s at least two months old and in good standing. You’ll need to prove that you’ve received deposits from your job, alimony, child support, or government benefits. Apply today using the streamlined application.
You will get a decision in less than a minute with a portion of the loan deposited directly into your bank account. As soon as you pay off your loan in full, you’ll get the reserve cash, too. And you get to use it for whatever you want to spend it on!
Payments are automatically deducted from the checking account you have on file. MoneyLion also reports payments to all three credit bureaus, which helps boost your credit score with ease! As a result, you’ll never have to remember due dates or worry about interest payments again.
If you need fast cash today, we have you covered!
Online predatory payday loans aren’t the only way to get cash in your account right away. Consider an interest-free cash advance with Instacash or a Credit Builder loan from MoneyLion. Both are easy to apply for and they give you access to funds in a matter of minutes!
