One of the most accessible and quickest ways of getting cash advance for urgent needs before your next paycheck arrives is the Payday loans package. As easy as anyone might make this to look like, it involves several processes that must be religiously followed. Due to the fact that lots of people are tilting towards this quick cash option, we thought is wise to extensively discuss this concept and other information that will help answer most of the queries that potential loan applicant may have.
What exactly is a Payday Loan?
There are lots of loan packages including but not limited to education, personal, housing loans. However the type that easily resonates with the average salary earner is the Payday loan which is why this loan type is becoming increasingly popular. You might be wondering why you haven’t heard of it despite its acclaimed popularity but this is certainly because it goes by different aliases like Cash Advances, Paycheck Loans, Payday Advance loans amongst several others. To succinctly define this type of loans, they are quite unsecure cash advances which can be easily accessed to offset some emergency needs but must be paid back from the credit value of your next paycheck. The payday cash advance is in fact the shortest and probably the most accessible of all the loans in the financial market today.
What are the limitations to this loan facility?
Everyone is conversant with the urgent need to get some cash to handle stuffs because they obviously can’t wait for their next payday. Most of us are quite reluctant to go down the lane of the credit cards because of the very steep interest rates and are hence faced with having to let the urgent need play itself out regardless of the consequences but not anymore, because the Payday loan package is available to you as long as arrangements have been made to service it from your paycheck. This good thing again is that there are virtually no limitations.
The best thing about payday loans is that they can be obtained even if your credit rating is not very good. The second best thing about payday loans is that taking a cash advance does not affect your credit rating. All you need to be eligible to receive the payday loans is to have a running checking account and a regular job.
Who’s eligible for a payday loan?
Due to the very lax requirements, this loan packages are usually open to almost everybody even if they have a very bad credit rating as earlier stated. Importantly, you must note that the fact that you obtained a payday loan does not affect your credit rating. As long as you have a paying job and operate a checking account then you are good to go.
Applying for a Payday loan
You are probably considering applying for a credit facility that is benchmarked against your next paycheck so here’s how; there are tons of them out there on the internet and apart from the need to complete a form that requests for your Name, Address and details about your employer, there isn’t such a big deal to it. While there are some companies that requests for your bank statements, on the average, the requirements for this loans are minimal especially when compared to that of other credit facilities.
How much is required to service my payday loans?
There is a serious need to research several companies that offers similar packages so that you can make more informed decisions with regards to fees chargeable. There are some companies that exempt you from paying in the week after the loan was disbursed. You however, have to make remittance in the subsequent weeks.
How much cash is available in a payday loan facility?
The amount of money that can be disbursed in a payday loan package differs by company and is significantly influenced by the capacity of the borrower but on the average, you can hope to get from $100 to $1000 on the average.
What is the maximum tenor for payday loans?
Since the credit facility is banked against your next paycheck, it is only logical to be settled in not more 30 days. However, you can enter into flexible arrangements with some of these companies such that you can actually spread your remittances over 2 to 3 paydays. Note however, that these arrangements increase the cost you incur. So the more you get your creditor to extend their payment period, the higher the charges that accrue to you.
How long before the payday loan is disbursed?
Since the requirements are easy to meet up with, you can get the credit facility within 1-2 business days. Immediately you complete the application form online, the processing commences and the lending office makes a telephone confirmation. After working out the brief formalities, you can expect to be credited as quickly as within 24 hours.
What is the Interest rate like?
While the payday may be the easiest of all loans to secure, it is important to note that the interest rate is significantly higher than other loan packages which is only logical based on the level of risk exposure to the lending house. Hence, it is important that you prudently deploy these finances and also ensure that you do not obtain payday loans often so that your monthly financial plan is not disrupted.
Having succinctly discussed the modalities and processes of obtaining and servicing a payday loan, it becomes necessary to present a lowdown of some of the biggest and popular payday loan creditors in the United States. To come up with our list, a very detailed vetting process was conducted to ensure that each of this lenders have presence in at least 20 States in the Union and have been actively lending in the last 5 years. Our process also considered lenders with both online presence and walk-in stores whose locations are also listed on the lender’s website. Rest assured as well, that each of the lenders in this review are not middlemen or brokers but in fact direct lenders.
First on our list is LendUp which is one of the leading payday loan creditors around. They are one of the few lenders that adopted the online presence in the industry and this has in fact placed them in a pole position as far as lending is concerned. However as cool as the online application for No Check loans sound in the sense that applicants do not have to walk into the store to obtain loans, it should be duly noted that these online loans sometimes have varying interest rates and beyond that, there is no law that compels data privacy within the industry as it applies to customer data hence, one lender can sell your information to competitors which will most likely to lead to several adverts and provisional offers flooding your e-mail box.
Rise is also a very reliable lender despite the fact that the usual payday tenor is 14 days. However, even though they offer some longer-term loans, it is important for you to avoid their installment loans as much as possible because their rates are significantly higher that the payday loan. If what you require is a small amount to settle urgent needs then they are your go to guys especially with their very flexible terms and no prepayment penalties.
Check into Cash
Check into Cash also comes in strong in this industry especially when compared to most brick-and-mortar stores which are well known to offer advantages over online payday lenders and creditors that focus more on in-person customer services. Some of the major strengths of this lending house are their check cashing services, installment and title loans, as well as lines of credit.
Ace Cash Express
Ace Cash Express is very popular amongst salary earners because of the customer focused loan application with industry acclaimed ease of use when applicants are applying through their website. Since the application takes very little time to complete because of the minimal requirements needed to be met before loans can be obtained, all an applicant needs to provide are some pretty basic personal and bank account information, phone number, social security number and income information.
At CashNet USA, you can expect to get payday loans with varying terms and rate depending on your state of residence. This dynamic loan interest rate is designed to help the lending house cope with the different peculiarities of each state. However, CashNet USA publishes these rates in the Rates and Terms page on their website so that potential applicants have all the information required to make a decision. This level of information sharing and accountability is why this payday loan creditor is amongst the top five within the very competitive industry.
Speedy cash was established in 1997 and is focused on short-term loan facilities. With offices in Nevada, Washington and Oregon, they do constant business with Rapid Cash which is why there are able to operate as Cash Money in Canada.
LoanMart (formerly 800loanmart.com)
Formerly known as 800loanmart.com, LoanMart started operations in California in 1999 but has over the years expanded their operations into 11 states in the Union. Apart from payday loans which is really their hallmark, they offer both in-house and DMV so that potential customers can make applications and get cash without any hassles.
Persons residing in the states of Arizona, California, Florida, New Mexico, South Carolina and Tennessee are currently exempted from credit checks or even upfront fees. The elimination of the hassles of credit checks and dillydallying of upfront fees makes the process of obtaining loans less cumbersome and more appealing to potential applicants.
The TMG Loan Processing also known as the Tradition Media Group Loan Processing is a very efficient payday lender which leverages the several affiliate lenders they have across the continental United States to ensure that their customers get a free and easy to access lending service that is tailored to meet the specific needs of each applicant.
Advance Financial was established over 20 years ago and has since been offering payday loans, check cashing and other financial related services in the States of Utah, Idaho, Kansas, Missouri and Tennessee. Their main focus are high-interest FLEX loans and also short term loans.
Advance America Cash Advance
This lender is a major cash advance company that began operations in 1997. Advance America Cash Advance offers short term loan facilities in both walk-in stores and online to customers anywhere within the United States. With over 2,400 offices in the country, there is hardly anywhere you will be that there isn’t an Advance America Cash Advance store to sort you out in your period of urgent financial needs.
Are there things to avoid?
Yes, there are certain things to avoid especially the payday loan alternatives which have been packaged in a similar fashion to the No Check loans. This piece of information is very important because they expose you to even higher risks than you would with payday loans. These alternatives include:
Operating using almost the same model as the payday loans, Title loans make cash advances available to even clients with very bad credit rating but require that the title of their cars or any movable assets be signed over to them hence the name “title loans”. If the debtor repays the loan, all is well otherwise, the lender will move to seize such movable asset. It is important as well to note that these loans have very high APRs and fees.
The search for the payday loan that best fits your needs is very critical so that you don’t regret your decisions over time. It is also important to note that since credit checks are not conducted, the risk of non-repayment spikes since the lender has no idea of the credit history of the potential applicant. Hence, you must weigh your options very carefully and ensure that regardless of what you intend to use the loan facility for, it must be put into extremely prudent and judicious use.