Many Americans opt for payday loans when they’re financially struggling. However, these loans are exploitative and burden the borrower with massive debt.
A reason many people are forced to take payday loans is bad credit. Banks and small loan lenders only offer secured loans, so they have a good guarantee of getting their money back.
On the other hand, payday loans in Washington DC are unsecured, which means that people with low credit scores can get one—and they do, since they believe they have no other options when their finances are exhausted.
A short-term, high-interest payday loan isn’t easy to get rid of. It’s the debt that keeps accumulating as it destroys the borrower’s credit score and overall financial health.
That’s why it is essential to know your options when you need cash fast. Here are some safe payday loan alternatives you should consider.
Your Cash Advance Options In Washington DC
Payday loans sound great in theory, but the massive interest rates can push you further into debt. The good news is that you have other options for cash advances.
Max Advance Amount: $250
Credit Affects: None
Payday lenders require you to pay back the loan—along with its associated fees and interest—within two weeks. These loans have extremely high-interest rates, and the borrower is often unable to return the amount with interest in the short period provided.
If you need a small loan to keep you going, MoneyLion’s Instacash service is ideal for you.
Instacash is an easy, cheap, safe way to access an advance on the money you’ve already earned but haven’t gotten a paycheck for yet.
You can receive cash advances up to $250 without any monthly fees or interest. All you need to do is link your active checking account, and MoneyLion will determine the advance we can offer based on your recent deposit history.
You can sign up for Instacash with a RoarMoney or any other bank account. The amount usually takes around two days to get deposited into your account, but you can choose to get instant deposits for a small fee.
How to Qualify for Instacash:
- Be 18 years of age or older over
- Have a steady income or deposits
- Have a checking account with a positive balance that has been active for 60 days or more
Max Payday Loan Amount: $700
Credit Affects: While they don’t pull credit, payday lenders report missed or late payments to credit bureaus.
Payday loans in Washington DC are restricted to $700 or 30% of your monthly income. You can access whichever of the two amounts is less.
Taking an in-person payday loan requires you to pay a fee of $95. The lender’s fee and interest have to be paid back with the original amount within two weeks. You can borrow a maximum of eight payday loans a year.
In Washington DC, payday loans have high APRs. A payday loan with a 400% or 500% APR would be challenging to pay back within the allotted time. Failure to make timely payments can destroy your credit score, but making payments on time won’t improve it.
How to Qualify:
A payday lending service will require the following to provide you with a loan:
- Any government-issued ID
- Proof of income
- Personal check
- Active checking account
- Social security number
Your Instant Loan Options In Washington DC
If you need a bigger sum of money, get Instacash from MoneyLion. Here are some instant loan options available:
Credit Builder Loan
Loan Amount: Up to $1,000
APR: 5.99% to 29.99%
Credit Affects: Your credit score can improve by up to 60 points in just 60 days!
Do you need a loan instantly but have a low credit score? Your answer is MoneyLion’s Credit Builder Plus membership. You can apply for installment loans to improve your credit score since your payment activity is reported to credit bureaus. All you need to do is pay the installments back over a year.
MoneyLion gives you more than enough time to pay back the loan, and the low interest makes Credit Builder loans extremely easy to payback. Apart from the monthly membership charges, there are no other fees you have to pay.
It only takes your Social Security number, a valid bank account, and a few minutes of your time to apply for a Credit Builder Plus membership.
MoneyLion will deposit the amount into your account immediately after loan approval. Depending on your finances and MoneyLion’s discretion, a portion of the loan Credit Reserve account. A small portion of your loan is retained and gains interest in the Credit Reserve account. You can access these funds after you pay off your loan.
At $19.99/month, you can enjoy all the benefits that the Credit Builder Plus membership offers, including access to Instacash advances at 0% APR.
How to Qualify:
- A Social Security number holder
- At least 18 years old
- A bank account holder with a debit or prepaid card
- A citizen or permanent resident of the US
- Have a bank account with steady deposits or income that has been active for at least 60 days.
What’s included in a Credit Builder Plus Membership?
- A loan of up to $1,000 to be paid back over 12 months
- Regular credit updates and monitoring
- A Cash Reserve account that acts as a built-in savings account
- 0% APR Instacash advances
- An improvement in your credit score—up to 60 points in 60 days!
Comparing Your Loan And Cash Advance Options In Washington DC
Instead of taking a high-interest payday loan, give MoneyLion’s cash advance and instant loan options a chance. You can compare and choose between these options:
|Instacash||Credit Builder Loan||In-Person Payday Lender|
|How Much Can You Borrow?||$250||$1,000||$700|
|Fees & Interest||No fee |
|Competitive APR |
|300% to 500% |
APR $95 fee
|Impacts Your Credit?||No||Helps build your credit score||Late payments can damage your credit score considerably. There is no improvement in credit score if you make all your payments on time.|
|Availability||Online & Mobile||Online & Mobile||In-person|
|Next Steps||Sign Up||Sign Up||Fill out an application form in person.|
MoneyLion’s Payday Loan Alternatives Can Save You From Debt
High-interest payday loans can be brutal. Credit Builder Loans and Instacash advances can keep you going through financial issues without burying you in debt.
MoneyLion’s services help you financially and give you the space and time you need to rebuild your credit score. Applying for a Credit Builder Plus membership is a safe, hassle-free alternative to payday loans, and MoneyLion representatives will answer all your questions.
Download the MoneyLion app to get started today!