Payday loans, sometimes called payday advance loans, are short-term loan options that are extremely fast. Payday lending helps borrowers with bad credit scores get funding in emergencies. But there’s more than meets the eye with these quick cash solutions. So we’re here to fill you in on everything you should know about fast payday loans online and payday cash advances.
Taking out an online loan these days can feel very overwhelming. After all, there’s so many options out there. Online loans are understandably faster than in-person options. And although online payday options are quick and flexible, they may come with some significant negatives and so you should reconsider your options. If you do decide to take the step of applying for a payday loan, you’ll need to consider the pros and cons. Below you will find everything you need to know about payday loan options and the online payday loans process!
The reason these risky loans are so appealing is because they’re fast and convenient. Borrowers can find a direct or indirect payday lender very easily since there are so many.
Once a borrower finds their lender, they can usually be pre-approved before accepting and signing for their loan. With pre-approval, you’ll know some details about the payday loan, such as loan amount, average interest and the annual percentage rate (APR), repayment terms, and of course, eligibility. You can then compare your loan options and pick a lender you want to move forward with for final approval. Some payday lenders may check your credit score before approving you, while others offer no credit check loans.
With final approval, you may need to send documents to verify your identity and income. Once that information is in, some lenders may ask for a hard credit check, while others may not. Here are some examples of the documents you may be able to use in order prove income and your identity:
Once you get final approval, you should review the loan agreement and the loan terms (interest rates, monthly payment amounts, loan length, etc.). If everything looks good, you can sign the contract and get your loan proceeds almost immediately. In most cases with online lenders, you’ll receive the funds as a direct deposit into a checking or savings account.
When researching loans, you’ll come across what are known as bad credit loans. But what are they exactly, and who do they apply to? These loans are available for borrowers with less than perfect credit or poor credit. Generally—anyone whose FICO or VantageScore is close to or below 600. These loans can be cash advances, lines of credit, or standard installment loans.
In most cases, bad credit funding offers loan amounts of only a few hundred dollars. And so, are usually only helpful for short-term financial obligations or emergencies, rather than long-term financial solutions.
Another key feature of these loans is their high interest rates. Because of the risk they pose for the lender, the interest rates will likely be higher for these loans than loan options for borrowers with good credit. As a borrower, it is imperative to pay attention to this, as it reflects the total cost of borrowing. And the last thing you want to do is get stuck with a loan you cannot repay.
Sometimes bad credit loans will require an asset—also called secured loans. These loans may take a little longer to process than unsecured options. Depending on the asset, you may get to hold onto it while you repay the loan. This collateral helps add security for the lender if the borrower cannot repay their loan.
At CreditNinja, we have been helping people secure financial solutions since 2018! The great thing is that we offer safe online loans, so you can get started from the comfort of your home!
CreditNinja offers online installment loans for bad credit borrowers that are just as fast and convenient as payday loans. Curious about our products? Here are some advantages of our installment loans you should know about:
With CreditNinja, you could get steady monthly payments that are designed to be flexible and manageable for your budget.
With CreditNinja, we could offer various loan amounts, repayment terms, and lengths to provide a personalized loan experience.
With CreditNinja, there will be no surprises with repayment. And so, for a predictable and worry-free loan, start with us!
Applying for online payday loans can be risky because not all lenders offer a secure website. This could compromise your personal information, putting your identity at risk. Not to mention, there are several payday loan scams online. When working with CreditNinja online, you can rest assured that your information is safe. We take thorough safety measures for our online loan applications.
Even if you don’t have the best credit, do not hesitate to apply for one of our loans! We’ve helped over 275,000 borrowers with all kinds of credit. And so, even with bad credit, we may be able to help you out too!
Still trying to figure out how payday loans work and need more information? Here are some answers to the most common questions we get about payday loans:
A payday loan online makes it possible for bad credit borrowers to borrow funding easily and quickly—sometimes even instantly. Generally, these loans make around a few hundred dollars available to borrowers. The funds need to be repaid in a single payment, usually by the date of your next paycheck (two to four weeks).
To apply for a payday loan online, you’ll need to provide proof of your identity and income. Sometimes, there will be a credit check. Once you get your payday loan funds (usually within the same or the next business day), you can use them for almost any short-term financial need, such as an unexpected bill. If you have some other financial obligations which cost thousands of dollars, a payday loan won’t be the right option for you.
Although a payday loan online allows borrowers with poor credit to access cash, it is not a good idea for everyone. A payday loan comes with extremely high interest rates and fees and must be repaid in full within a short period. All of these variables add up and make it challenging to repay on time. If you need quick cash there are better online loan options.
When searching for online payday loans, you’ll find a few other different loan types online. Below are some the most common loan types you should know about:
An installment loan is any loan that is repaid in equal payments over a certain amount of time. Many people consider these loans because they are easy to fit into almost any budget and stay on track with repayment. CreditNinja offers installment loans!
A personal loan is one of the most-used loans ; essentially, it allows a borrower versatility in the loan amount and use. Many people use a personal loan for purchases like furniture, electronics, or as a downpayment on a home or car. Personal loans can also be used to pay off debt, investing, business solutions and other financial endeavors Although most personal loans are much different than payday loan options, sometimes payday lenders may label their loans as personal loan options.
Cash advances or cash loans allow borrowers to get cash immediately from their loan. Cash loans and cash advances can be extremely convenient for borrowers who don’t have a bank account. Many payday lenders offer cash advances because they offer more flexibility for their borrowers. And so, when searching for a payday loan, don’t be surprised when you see cash options in the mix.
The interest rates for a payday loan will vary depending on the lender you go to, your state (as state laws impact that), and your credit scores. However, there is an average range you can expect. According to the Consumer Protection Financial Bureau, a two-week payday loan has an average APR of 400%.
Regarding fees with payday loans, that will be included in the APR of the loan. These can include origination fees, finance charges, etc. For specifics, talk to the lenders you are applying with.
Typically, they should never be your first choice in funding since payday loans can negatively affect your credit. However, if an emergency comes up and they are your only choice, then you will need to know how to apply for one. If you do want to continue with a payday loan, here are the steps you will need to take to apply today:
The first step you will need to take is to find a few lenders you may want to work with. You can look at a direct payday lender or an indirect lender. From here, you can apply for pre-approval. With pre-approval, you’ll get a better idea of things like APR, repayment terms, and loan amount.
Once you have pre-approval with a few lenders, it will be effortless to compare your loan options. Don’t just focus on the interest or annual percentage rate; make sure you consider flexibility, monthly payments, and of course, the loan amount you are getting.
For final approval, you will need to verify the information from the pre-approval process. Your lender might ask for some documentation, and once that is verified, you can sit back and wait for the final decision.
Once you are approved, all that is left to do is review the loan contract, sign it, and get the funds! In most cases, with payday loans, you’ll get your funds sent straight to a bank account.
And so, as you can see, the process is pretty simple. You should know that CrediNinja’s personal loan process is just as simple as the online payday loan process. On top of that, we offer convenient loan terms and a flexible payment schedule. And so, consider one of our personal loans as a better alternative to online payday loans.
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