Are you struggling to make it to payday each week? With inflation reaching an average rate of 8% in 2023, your cost of living most likely dramatically increased. Pinching pennies until payday doesn’t have to be your only option. In fact, a solution that countless workers overlook is payday loans.
In this article, we’ll cover everything you need to know about payday loans, including common uses, advantages, disadvantages, and how to find the right payday lender nearby or online. If you have any lingering questions about how you can use payday loans, don’t hesitate to reach out to one of our payday lenders today.
What is a Payday Loan?
A payday loan is a form of short-term borrowing meant to bridge cash shortages between pay periods. Since this type of financing is short-term, payday lenders charge high interest rates and finance charges. It’s not uncommon for interest to be assessed at 400% APR.
This means that on a $1,000 loan, you are paying almost $335 a month in interest. If you don’t pay the $1,000 loan back for a full year, you will end up paying $4,000 in interest. In addition to the high interest rates, payday lenders can also assess a finance charge, which ranges between $10 and $30 per $100 borrowed.
Some states do impose limits on the amount borrowers can take out.
- Other jurisdictions, like Washington DC, Georgia, New York, Vermont and Arizona, make it illegal to take out payday loans.
Understanding your state’s regulations is important before pursuing payday loans. Working with the right payday loan lender near me ensures you are abiding by all necessary regulations.
When Can You Use a Payday Loan?
Payday loans near me are beneficial in a few different circumstances. First, you can use this financing type if you know you are getting paid and need a quick infusion of cash. The amount of your payday loan is dependent on your expected pay. If you have no income coming in, you most likely won’t be able to secure a payday loan.
Another reason that you might choose to use a payday loan is if you have poor credit or have no other financing options available. Payday loans come with stiff interest rates, well above what traditional financial institutions offer for personal loans. However, if you are unable to qualify for a personal loan, use a credit card, or borrow from another source, you might resort to a payday loan.
You shouldn’t take out a payday loan if you won’t be able to pay it off in the short term. Instead, you should only take out this loan if you expect to pay the balance off as soon as you get paid. This can help you avoid stiff interest rates.
What are the Advantages and Disadvantages of Payday Loans?
- The Advantages
Payday loans have both advantages and disadvantages. The first advantage is flexibility. Payday loans have fewer requirements compared to other financing options. You don’t have to go through rigorous credit checks or meet the same level of criteria that banks require for loans.
Moreover, payday loans are easy to access. Applying for a payday loan only takes a few minutes, with money potentially reaching your bank on the same day. This is the main advantage of payday loans. Taking a personal loan through a financial institution can take weeks. However, payday loans can take as little as a few hours.
There are also provisions in place to protect payday borrowers. The Consumer Financial Protection Bureau prevents lenders from attempting to collect payments that result in excessive fees or stray from what the borrower expects. Additionally, the Consumer Financial Protection Bureau can also help resolve any issues between borrowers and lenders, serving as an independent intermediary.
- The Disadvantages
There are some disadvantages to keep in mind as well. The main disadvantage is the high interest rate. Payday loans are a riskier investment. In order to offset a portion of the risk, payday lenders charge significant interest rates. If you hold the loan for a few months, you could end up paying more in interest than you originally received. This is why paying off the payday loan should be a priority.
Another disadvantage is that payday lenders often receive access to your bank account. This allows lenders to take direct recurring payments from your account. Keep in mind that you can cancel this option, but most payday lenders require direct access before a loan is issued.
Collection practices of payday loans are also questionable. Payday lenders have earned a bad reputation for being very tough in their collection methods, including sending threatening letters and constant calling. Although the Consumer Financial Protection Bureau does prohibit the use of predatory practices, some lenders aren’t in full compliance.
What Should You Look for in a Payday Lender?
Not all payday lenders near you are the same, making it important to evaluate each prospective lender before making a decision. Here are some of the criteria you should consider:
- Interest Rate – What is the APR? Is there a cap on interest?
- Finance Charge – How much does it cost to take out the loan?
- Repayment Period – Are you required to repay the loan in a certain amount of time?
- Qualifications – What are the qualifications to take out a loan?
- Loan Max – What is the maximum loan you can take out?
- Payments – How will payments be made? Can you opt out of automatic debits?
These are just a few of the questions you should ask your potential direct payday lender.
Does it sound like you could benefit from a payday loan near me? If so, reach out to one of our payday lenders today. We can help you take out a payday loan, giving you access to the quick cash you need. Reach out today to learn more.
List of Popular US Payday Loan Direct Lenders (TOP10)
List of payday loan companies that may have offline offices (stores) near me:
- ACE Cash Express
Company address – 300 E. John Carpenter Fwy #900, Irving, TX 75062
- Check ‘n G
Company address – P.O. Box 36124, Cincinnati, OH 45236
- Speedy Cash
Company address – P.O. Box 782260, Wichita, KS 67278
- Check City
Company address – P.O. Box 35227, Las Vegas, NV 89133
- Advance America (AARC, LLC)
Company address – 135 N. Church Street, Spartanburg, SC 29306
- Check Into Your Cash
Company address – 5165 Emerald Parkway #100, Dublin, OH 43017
Company address – 175 W. Jackson Blvd #1000, Chicago, IL 60604
- Net Pay Advance
Company address – 6820 W Central Ave, Wichita, KS 67212
- OneMain Financial
Company address – 601 N.W. Second Street, Evansville, IN 47708
- LoanNow, LLC
Company address – 3100 S. Harbor Blvd, Santa Ana, CA 92704
What if I Can’t Find Loans Near Me?
If you have not been able to get money from one of the direct lenders, then you can apply for a payday loan online on our website. Here are just some of the reasons why people come to us:
- The direct lender is too far away (or does not have a store in the borrower’s city).
- The lender refused to issue a loan because of a bad credit history or demanded too many documents during registration.
- The borrower does not have the time or opportunity to visit the lender’s office in person.
- The money is needed urgently, and the company’s office is closed (non-working hours or weekend).
Locations We Serve 24-hours a Day
Here is a partial list of cities whose residents can get payday loans via the Internet:
If you did not find your city in this list, then write to us by e-mail (Contact Us). We will try to help you!