Are you in a financial bind and need fast cash? There’s a chance you’ve considered an online payday loan to get you over the hump.
Online payday loans are easy to get, and you can have the funds in your account the same day. But there are downsides to these loan products you should know about before applying.
Keep reading to learn more about how online payday loans that offer same day deposit work, along with other viable options that are better for your finances.
How Online Payday Loans Work
Many states offer online payday loans to cash strapped customers. The application is straight-forward and can be completed in minutes. 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. This is the account where the lender will send the funds when the loan application is finalized and withdraw payment when the loan becomes due.
Want to take out more than one payday loan at a time? Though strongly not recommended, this practice is allowed in select states.
Wondering if you qualify for a payday loan? Each lender has a specific set of qualification criteria, but you may be eligible if you:
- Are at least 18 years of age and a citizen or permanent resident of the US
- Have steady employment or a verifiable source of income, like government benefits, child support, alimony or self-employment earnings
- Possess an active check account that is in good standing and can receive direct deposits
- Have a valid physical address, email address and working phone number
You may also be required to provide your Social Security number and a copy of your driver’s license or state-issued identification.
Each state that permits payday lending has strict laws regarding:
- The loan term: many are due by the next payday, but some states require lenders to extend loan terms of 30 days or longer
- Maximum loan amount: some states have a flat rate while others mandate the loan amount cannot exceed a set percentage of the borrower’s income
- Interest rate: online payday lenders assess steep interest rates for their loan products
- Loan rollovers: they are allowed in some states and prevent you from defaulting on the loan and incurring fees from both your financial institution and the lender
- Penalties and fees for nonpayment: defaulting on the loan could mean more money out of pocket or damages to your credit if the delinquent account is sold to a collection agency
Check with the banking division for your respective state of residence to learn more.
Payday lenders don’t check your credit. They are more concerned with your ability to repay than your creditworthiness — and assess exorbitant interest rates to offset the risk of default.
Be mindful that delinquent loans can be reported to the credit bureaus if the account is sold to a debt collector and you don’t make arrangements to pay it off.
Other Viable Alternatives
There are far better options for your wallet than an online payday loan. You can:
- Sell or pawn your items.
- Request a loan from a relative or friend.
- Use a low-interest credit card and repay what you spend promptly.
Even better, consider a loan product from MoneyLion. Available with no credit check and with rates from 0% APR.
Interest-Free Cash Advances
You can borrow up to $250 without paying any interest or required fees through the Instacash feature. 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’s at least 2 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. You will be prompted to connect your bank account to determine how much Instacash you qualify for. Request the amount you want to borrow, and the funds will arrive in your account in minutes.
Credit Builder Loans
Need a little (or a lot) more than $250 to find temporary relief? MoneyLion also offers Credit Builder Loans of up to $1,000. You can receive cash the same day you apply, and payment history will help improve your credit score. That’s a win-win situation.
Good credit isn’t required to qualify as there are no credit checks. All you need is an active checking account that’s at least 2-months old, in good standing and receives deposits from your job, alimony, child support or government benefits.
Apply today using the streamlined application. You can get a decision in less than a minute and have the loan proceeds deposited to your bank account.
Depending on your finances, you’ll get either all or some of the loan amount deposited into your bank account right away. If some of the money is withheld, it will be saved for you in an interest-earning Credit Reserve Account in your name.
As soon as you pay off your loan in full, you’ll get the reserve cash too – for whatever you want to spend it on!
Payments are automatically deducted from your checking account on file to help you pay on time and boost your credit score, as MoneyLion reports payments to all three credit bureaus. Plus, this means you never have to concern yourself with due dates.
It’s only $19.99 a month to join the Credit Builder Plus membership. That’s a small price to pay for an affordable loan that helps build your credit and gets you the funds you need fast.
The fee also includes Instacash cash advances and credit tracking with weekly score updates.
Get the Cash You Need Today!
Online payday loans aren’t the only way to get cash in your account right away. Consider an interest-free cash advance from Instacash from MoneyLion. It’s easy to apply, and you can have access to funds any time of the day or night.
The Credit Builder Loan may be more suitable if you need to cover a larger expense and want a loan that’s affordable and healthy for your finances.