If you've made it to this web page it's pretty safe to say that you've found yourself in a financial jam. If you're in the kind of trouble that requires a payday loan online, you may have already realized that there aren't a ton of options available. Worse yet, if you're one of the many Americans struggling with credit difficulties– you have even less options.
Let's be real. Borrowing money is almost never fun, but sometimes life happens and you need quick access to cash.
It's no secret that borrowing money is rarely a joyous occasion. In an ideal world everyone would have enough funds to take care of the necessities. But in the real world, sometimes stuff happens and you just need to handle business. Whatever you may need your cash loan for it's reassuring to know that online lenders are willing to work with all types of borrowers. Lenders want to help you to get the funds you need– even with bad credit in some cases.
What is an Online Payday Loan?
An online payday loan is simply a short-term cash advance that a borrower agrees to pay back by giving an direct payday lender a personal check to cash on an agreed-upon date. You also have the option of giving a lender via electronic access to your bank account so that they can withdraw funds directly from your next paycheck.
There are various names for online payday loans. Paycheck advances, check loans, deferred deposit loans or cash advance loans are a few. These types of loans all usually work in a very similar manner.
People in search of a payday loan do not have to visit a brick and mortar lending institution to apply. We're in the future, baby! If I can get text messages on my wristwatch, I shouldn't have to leave my couch to borrow a few bucks.
The application process is usually quick and simple. The best online payday lenders can transfer funds into your account as soon as the next business day. Of course, this will be dependent on your individual circumstances.
The Online Loan Application Process
As we've mentioned, the application process will vary from lender to lender. Below you can find a list of requirements that traditional payday lenders might ask you for proof of:
- Be a US resident who is 18 years of age or older
- Have a valid drivers license or other government-issued identification
- Provide proof of income from gainful employment or another source
- Be able to provide a verifiable email address and a valid phone number
- A personal check or electronic access to a bank account is generally required from financial institutions
What are the Benefits of Payday Loans Online?
Convenience and speed are the biggest benefits of payday loans online. It's difficult to find financial services that are able to move as quickly. Not only is it a quick application and short turnaround time to get funds, but you don't even need to leave your home!
This type of short term personal loan typically does not have as many requirements as you might be used to. Many borrowers report that there isn't as much of a hassle when it comes to getting funds.
Who are Payday Advances Right for?
A payday advance is right for a person that needs quick access to cash that they know they’ll be able to pay back quickly. Medical emergencies, unexpected changes in income, and car repairs are only a few of the very common reasons that a person might find themselves in need of short-term loans.
To be clear, a payday cash advance is not right for you if you just need a little extra money for incidental expenses. You should only use this type of loan as a last resort to meet short term financial needs. We strongly advise against payday advances as a long-term financial solution.
Will Online Payday Lenders Check My Credit Score?
In most cases, a "soft pull" of your credit is all that's necessary. This means that your direct payday lender will verify certain pieces of your credit history. Luckily a soft pull will not impact your credit score.
Online lenders will often use a person's income as an alternative option when trying to make their credit decision. However, you really shouldn't worry about a credit check. People with credit issues usually have a better chance of approval for an online payday advance as compared to the other types of personal loans. That said, you don't necessarily need to worry if your payment history is less than perfect.
Am I Eligible for a Loan if I Have Bad Credit?
Unfortunately there is rarely good news for folks with bad credit, huh? In the case of online payday loans, this could be a situation where a bad credit lender could catch a break.
You should still consider applying even if you have bad credit. In fact, payday loans are well known for being one of the few viable options for people who have low credit scores and an urgent need for cash.
Online payday lenders are very aware of the fact that a credit score doesn't paint the full picture when it comes to a person's ability to repay a loan. Payday lenders almost always review a variety of data when making a decision about your loan application instead of focusing on your credit score.
The credit score of the average applicant for this kind of loan is generally on the lower side, so you shouldn't let a bad credit report discourage you.
How Quickly Can I Get Funds Transferred?
In most instances, you will know the status of your personal loan application within a few minutes. At that point, you'll finish the loan process with your direct lender.
The length of time it takes from beginning to end may vary from one financial institution to the next. Most loan transactions of this type are processed faster than traditional loans. The best online payday lenders have been known to deposit funds as soon as the next business day in some cases.
Should I Just Use a Credit Card Instead?
When an unexpected expense pops up, it's really easy to just plop down a credit card and call it a day. But believe it or not, payday advances have recently emerged as a savvy alternative to the use of credit cards.
It sounded silly to me too at first. Until I heard why. In most cases, it takes a long period of time to pay off a credit card. Which then of course means that you will have to pay a hefty amount in interest over time.
When this interest is added up over a long period of time, it can potentially put a significant dent in a person’s discretionary income. Payday advances online have an advantage over credit cards in that regard. They eliminate the carry a large balance that may be difficult to pay down; and will only get harder as time goes on. Using credit cards in this manner can snowball into a major financial problem in a hurry.
But you can avoid this issue with an online payday advance because these types of loans are repaid very quickly and on a predetermined schedule. Payday cash advances from a direct lender are a solid option for people who are unable to pay urgent bills.
The Different Types of Online Payday Advances
Not all online payday advances are the same.
There's a few different types depending on what state you live in, but the features are somewhat similar. For the most part, you will have options based on how quickly you want to pay back your loan, or how many payment installments you're comfortable with.
Why do payday loans get such a bad rap?
There's a lot of rhetoric on the web surrounding payday loans online. But what people oftentimes fail to take into consideration is the fact that everyone's circumstances are unique.
What it boils down to is the fact that the only person that can decide what's right for you and your finances– is you.
Cash advance loans might not be the right fit for everyone's financial needs, but we encourage you to do your due diligence and make an informed decision.
How much can I borrow?
Whether you just need a small loan to hold you over for a few days, or you’re looking to borrow a hefty sum of money, there are direct lenders who can help you.
Unfortunately there isn’t really a concrete answer on this for a few reasons. Each lender will have their own loan agreement and rules regarding the maximum amount you can borrow. Additionally, the laws vary from state to state when it comes to how much a lender is allowed to let you borrow.
In some states, the largest amount you can borrow is based on a percentage of how much you make monthly. This regulation is in place to protect consumers from getting in too far over their heads.
The Best Lenders for Payday Loans Online
If you're in the market for a loan, chances are you're also researching the best online payday lenders. To help you out with some of that legwork, we've included reviews from some of the top direct lenders below: