Everything You Need To Know About The Best Payday Loans
With a majority of Americans struggling financially, there has been a steady rise in the number of people taking payday loans to cushion them until paycheck arrives. Although these loans offer a relief in times of unexpected crisis, they leave borrowers ensnared in more debts. For instance, an average borrower in most cases lives from paycheck to paycheck. If a lump sum amount is slashed from their pay, they are forced to either roll over their loans or even borrow more to help them get by. This is more of a debt trap that only benefits the payday lender and leaves the borrower in a debt spiral that never ends.
Why do people take payday loans?
In life, unexpected expenses can pop up when you least expect. Bills can pile up leaving you financially crippled. Although financial experts advise that it’s prudent to have some savings set aside for rainy days, many people still find it difficult to save for emergencies. This leaves them unprepared for life’s blows when they come. Borrowing, therefore, remains their only option to cover the expenses.
Some of the top reasons why people borrow are:
- Medical bills.
- Tuition fees.
- Home renovations.
- Consolidating debts.
- Moving homes.
- Or even a vacation.
Although the above reasons are genuine and warrant taking short-term loans, borrowers could also explore other sources of finance when they are hard pressed.
Alternative sources of credit
Instead of looking at payday loans as the only funding option during emergencies, you can also explore the following alternatives:
- Installment loans – this is a perfect source of funding that allows you the flexibility of paying fixed installments over an extended period until the loan amount is fully repaid. They are also good for individuals with bad credit and one major advantage of these loans is that they are affordable.
- Personal loans – a personal loan from a traditional bank is ideal for any individual stuck up in a financial crisis. Banks charge reasonable interest rates which makes it easier to repay your loan without getting into more debt. The only downside of using banks is the lengthy credit checks. If you have a good credit score, however, getting a loan shouldn’t be a problem.
- An overdraft – you can also get a cash advance on your credit card to help you sort out an emergency that can’t wait. The interest charged is nothing compared to payday loans.
Features and benefit of payday loans
Despite the high interest and APR charged on short-term loans, these loans have a few desirable features and benefits.
No restriction on purpose – You don’t have to state what you will do with the money. Most lenders don’t ask. Their only worry is your capacity to pay back the loan.
No credit checks – Don’t worry about the lengthy, and invasive credit checks before your loan is approved. Lenders are more interested in your cash inflows than your credit history.
You don’t need any collateral – unlike title loans, you don’t have to issue your valuables as security before your loan request is approved. Because of the risk involved, lenders charge a high-interest rate to cover for any loss.
They are super fast – Most lenders have a simplified and easy to navigate application process that make it easy to request for a loan at the convenience of your home. The approval time is instant and you can get your money on the same day or as soon as the next business day.
As the name suggests, these loans are a savior during rainy days. They help an individual get by until paycheck arrives. You should however not use them as a long-term debt solution or for your daily expenses.
Qualifications for payday loans
To be eligible for these short-term means of funding, you have to meet the following requirements:
- You must have a steady source of income – this will help the lender gauge your capacity to pay back the loan. You can have income from employment or business. Be sure to produce your pay slips or bank statements.
- Have a valid contact address – ensure that you have an active phone number and email address that’ll make it easy to contact you.
- Be a permanent resident of the state you are borrowing from. You can prove this by producing your valid driving license or identification card.
- Be at least 18 years old.
- Have an active bank account.
When looking for best payday loans, it is important to weigh your options and lenders first before selecting one. Different lenders offer different rates and terms for their products and services. It is important to work with a lender who charges low-interest rates. This makes your loan more affordable and easy to pay.
Below are some of the qualities to look for in payday lenders:
Do they offer the convenience of applying online – if you need cash real fast, a lender who has a simplified application process that allows you to request for a loan anywhere would be ideal. They should, however, have a contact address on their website that directs you to their offices.
Do you have to go through brokers – it’s important to work with a direct lender other than going through brokers who will constantly nag you. It’s also easy to get reliable information from lenders than from their intermediaries.
Honesty – a good lender will be honest with all the charges involved when borrowing a short-term payday loan. To avoid misunderstandings later, make sure you ask how much interest they charge, the processing fee, late repayment fees, and finance fees. Compare several lenders and settle for one with a lower rate.
Is the lender interested in your financial stability – a good lending firm will not only offer you financial assistance, they’ll also give you financial advice that will help you get back your finances on the right track.
Some of the best payday loans are:
- Check into cash – allows you to borrow at the convenience of your home. With their simplified and quick approval time, you can have your loan within the same business day. With over 1602 reviews, this lending firm has over 900 stores in 30 states. As the name suggests, they provide quick cash to their customers without the lengthy and invasive credit checks.
- CashnetUSA – a responsible lender who provides customers with detailed information about their policies, the interest charged on payday loans and all the associated fees to help them make informed decisions. With over 1602 reviews, cashnetUSA has made it easy for many individuals to get their short-term loans hassle-free. You must be a permanent resident of the U.S.A and have a stable source of income to be eligible for their funding.
- Title max – the lending firm boasts of being able to provide payday loans to over 3000 people daily. They are super fast and have 1150 stores spread across 17 states. They also offer title loans and have over 1444 reviews from customers who are satisfied with their services.
- Speedy cash – it’s an international lending company that operates as cash money in Canada, and rapid cash in Oregon, Nevada, and Washington. Has over 1345 review from customers.
- Finova financial – they don’t perform credit checks nor do they ask for upfront fees to process your loan. This lending firm offers payday loans to residents of California, Florida, Arizona, New Mexico, and South Carolina. They are quick and make it easy for their customers to receive their payday loans at the comfort of their homes. They have over 155 reviews from satisfied clients.
- Ace cash express – offers payday loans to customers in 19 states. Their loan products include title loans, installment loans, and cash advances.
- Lendup – this is a direct lender that is licensed in every state to provide payday loans. Being a direct online lender, the private information you offer remains confidential. They don’t perform credit checks and approves your loan request quite fast. Unlike other predatory payday lenders, Lendup adheres to the different state’s regulation on the amount and interest rates charged on your short-term loans.
Important tips to payday loan customers
While it’s a fact that you can never prevent life’s calamities, having some savings in an emergency fund helps you go through life’s unexpected challenges easily. No matter how difficult it is, have a saving culture that allows you to save a fraction of your income before spending.
And before taking any short-term payday loan, here are a few things to look out for:
- Ensure you compare different lenders and settle for one with the most affordable rates and easy policies. This makes it easy and cheap for you to pay back your loan without getting into more debt.
- Instead of using payday loans for your emergencies, explore other alternative sources of funding. There are several loan products that offer you the much-needed funds at cheaper and more flexible terms instead of the single lump sum payments.
- If you are having problems clearing your payday loan due to the numerous rollovers and charges, talk to a credit counseling agency to help you get your finances in order.
- If your preferred choice of funding is payday loans, use them only for short-term emergencies. Using this line of credit for long-term debt solution is financially unwise.
- Make sure you understand all the terms and conditions of a lender before appending your signature on their loan agreement form. This will help you avoid future misunderstandings and legal proceedings that will even cost you more.
Why use us
We understand how frustrating it can be to be in a financial crisis. To help you get funds real fast, we connect you to a network of reliable lenders who’ll review your loan request and approve them on as fast as possible.
Getting quick cash when you need it most should not be frustrating. Let us make your funding needs easier.