Hey buddy! Do you need fast cash?
Then taking out a payday loan can be one of your options! But what exactly is a payday loan?
Well, a payday loan aka pdl, is a short-term loan for a small amount but with a high-interest rate. You need to repay the payday loan with your next paycheck. And for that, you need to deposit a post-dated check while taking out a payday loan.
Now, you might ask me what is the eligibility criteria for taking out a pdl?
Usually, to take out a payday advance, lenders require you to have:
- You should have a stable income or a job
- If you are self-employed, you need to provide your bank statement
- You should have an active bank or credit union or prepaid card account
- You should have an identity proof
- You should be at least 18 years old
- In most cases, you need to be a US citizen
The next question which comes to your mind might be how do you apply for a payday loan?
Well, applying for a payday loan is quite easy. In fact, you can apply for payday loans online too! You need to fill up the form. And the approved amount will be credited to your account usually within 12 to 24 hrs.
Usually, creditors approve your online payday loan the same day. And the amount gets credited within 12 to 24 hours.
By the way, let me tell you one thing!, Are you searching for pdls apps in the Playstore?, If yes, you won’t find many pdl apps like before!
But now, you won’t find many pdl apps in the Playstore! The reason being, Google has put a ban on the apps which offer pdls with 36% or more interest!
Or, you may walk into a brick-and-mortar cash advance store. And you can take out a pdl by submitting all the required documents. But the question remains,. how much amount you can take out as a pdl?.
It pretty much depends on your income and the payday lender. But most states have laws establishing maximum payday loan amounts which is usually $1,000. However, the loan amounts usually range from about $50 to $1000, depending on the state laws. You can have a look at the detailed information on the state laws here.
No doubt, payday loans can offer you fast cash and for small amounts. And most importantly, you can take out online loans with no credit check. That’s why people with low credit scores are natural clientele for payday loans.
But do you know what is the bad part of payday loans?
The incessantly high-interest of APRs! You, you heard it right!
For a $500 pdl, you need to pay around $75 interest! If you calculate this interest for a year, it will come at around 15%. That’s a decent one!
But there is a catch, buddy! This interest is charged just for a month maximum! Because you need to pay off your payday loans on your next paycheck date! So, if you calculate it for two weeks, it will come around 300%! In fact, you may find some payday lenders who charge even more than that!
However, some states like Alabama, Alaska, California, etc. have capped the interest rate of pdls to a decent level. So, if you reside in one of those states, you might be a lucky guy!
But you know what? This is not a permanent solution! I would suggest you organize your finances in such a way that you don’t need urgent money.
Still, if you need fast cash, you can look for some other alternate options instead of taking out a payday loan!!