online payday loans

Overview of Online Payday Loans

Want to know more about the online payday loan process?

Here are answers to the most common questions asked by potential borrowers.

What Is A Payday Loan?

A payday loan is a short-term personal loan that does not have to be secured with any collateral. Its function is to tie you over until your next paycheck when you’re faced with unforeseen bills or other expenses.

This is why it’s sometimes called a cash advance. This type of loan has become particularly popular in recent years as banks and larger lenders have tightened their belts during the economic recession, and are more reluctant to issue regular loans.

Borrowers find that they are still highly likely to be approved for a payday loan, and most applicants are approved within minutes when they apply online via websites like FastCashNearYou.

Payday loans also make a great alternative to credit cards due to their simplicity and relatively small sums.

The amount issued usually falls between $100 and $1,000, dependent on the borrower’s income level. The loan period is usually around two weeks, though technically under state laws this can vary.

If you are faced with an unexpected bill, car repairs, travel costs, or other small expenses that you won’t be able to cover until your next paycheck, a payday loan might be the perfect solution.

However, it is important to make an honest assessment of your financial situation before applying. Using a payday loan to pay off other debts is likely to make you worse off in the long run.

Who Can Apply?

Anyone over the age of 18 living in the state where payday loans are legal can apply for a payday loan online. As long as you are in regular employment (or self-employed) and not on active duty with the military, you stand a chance to be approved.

Most lenders simply ask that you earn at least $1000 per month, have a valid contact phone number, and a basic checking account where the funds can be deposited.

What If I Have Bad Credit?

bad credit scoreIn most cases, payday lenders do not run any credit checks, so if you have struggled with debt in the past this will not influence your application.

Lenders believe your income and employment status is the most important sign as to whether you will be able to pay back the loan.

As long as you are honest with the application and are using the loan to genuinely cover a short term expense, then there should be no issues.

How Much Does It Cost?

For more details on the fees and potential interest associated with our payday loans, you can check with your lender.

Each loan comes with a fixed finance charge, which is an added fee on top of the amount you borrow.

As long as you pay the loan back on the agreed-upon date, this is the only fee you will have to pay.

Interest and other charges do not kick in unless you fail to make the repayment and default on the obligation.

What Is The Application Process?

The online application process couldn’t be easier. There’s usually just one simple web form and this should take no longer than a couple of minutes to complete.

You’ll be asked for your personal details (name, DOB, address, etc), income information, and later your bank account details so the loan can be deposited.

As long as you complete the form honestly without any mistakes, the automatic verification system will let you know if you’ve been connected to a potential lender almost instantly.

You’ll then be made an offer within minutes. This is usually based on a percentage of your monthly income and will rarely exceed $1,000.

You do not have to accept the offer and nothing is finalized until you digitally sign the agreement.

When Will I Receive The Cash?

Although you can apply at any time night or day, your deposit is dependent on the banks.

As long as it’s not the weekend or a bank holiday you should see the cash as soon as the following business day. So if you apply during the day on Monday, the deposit will be there by Tuesday. In some cases, it may only take a few hours or an extra day.

Is My Data Secure?

data secureAny data you submit to a reputable lender is treated as confidential and will not be sold or passed on to third parties.

Online lenders use the latest encryption technology on the website and secure servers to store the data.

What Is The Repayment Process?

Unlike other loans where you pay installments on a weekly or monthly basis with added interest, payday loans are paid off in full just a few weeks after they are issued.

There are no installments. This is why it’s important to only apply if you can genuinely make the full repayment with your next paycheck. On average the loan term is just two weeks.

On the agreed-upon date, your lender will automatically take the payment (principal + single finance charge) from your designated bank account.

What If I Miss Repayment?

First off, if you believe you won’t be able to pay on the agreed-upon date it is important to contact your lender ahead of time. If they fail to collect payment and no contact has been made, you may then be subject to added charges and interest.

Lenders are also within their rights to begin collection proceedings against you, all of which could negatively harm your credit rating.

In some circumstances, your lender may be able to extend the loan term or renew the loan.

Lenders’ debt collection proceedings adhere to state and federal law and may involve phone calls, emails, and letters.

Still have questions about payday loans? Ask them in the comments below!

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How To Get The Best Short Term Loan?

A short term loan is a loan whose repayment tenure varies between a few days to one year. There are different types of short term loans. But you should always try to get hold of the one with a lower rate of interest. Following are the ways of availing the best one:

Examine Total Expenses:

When looking at the borrowing cost of the loan, do not only look at the rate of interest. Understand if any fee or additional charge is involved or not. Firstly check if the rate of interest that has been quoted to you is APR or not.

It will show you the total interest that will include charges and fees and you will have to repay it in one year after borrowing a loan. If the rate of interest increases then the borrowing rate f interest will increase too until it gets fixed for the loan term.

A rate of interest that is capable of changing is called a variable interest rate. On the basis of an individual’s creditworthiness, he will be provided a higher rate of interest.

Thus the borrowing will turn out to be more costly. Some short term loans’ quoted APR by banks include each and every cost of all interest along with the arrangement fees.

Get a proper idea of the early repayment penalty as a fee is usually charged for repayment of a short-term loan. After analyzing the total expenses involved in a short loan you will be able to borrow the best one easily.

Understand If It Is A Secured Or Unsecured Loan

Unsecured loans are fixed at some specific rate of interest for one or more years. It will never be linked to your assets. The quoted rate will be based on an individual’s creditworthiness.

And a secured loan will be held against a property’s value. It is a commitment for a long tenure. If you wish to remortgage for cash release may be for any home improvement, then find out if you really can afford an increase in repayment if the rate of interest increases later.

An unsecured loan is very risky for the lenders as if you fail to pay off the loan amount they have no security to claim on your property.

So unsecured loans are much costly than the secured ones such for instance a mortgage. The unsecured loans also offer a lower amount for borrowing – around 500 dollars on average. So, your property will be risk-free with any unsecured loan.

Quick Repayment Of The Loan:

In the case of a personal loan, if the tenure of the loan is more, then you will be paying more interest. But this does not happen while taking a short term loan.

For credit cards, you can opt for the balance transfer card where you will get credit without any interest for 36 months. Try to clear the total outstanding amount of a credit card instead of the minimum payment each month.

This will make you clear off only the interest instead of taking care of any underlying debt.

The debt will be troubling you when that interest-free tenure will end. Overdraft is a type of short term loan whose extension will assist you in borrowing money for some weeks or maybe months.

Current accounts will offer these facilities and by paying a fee, you can extend the overdraft.

An authorized overdraft that your bank has approved will be less expensive than any unauthorized one where the charges will quickly rise up. Ensure that you have planned your repayment.

Borrowing money without any repayment plan will create financial problems.

Avail A Lower Rate Of Interest:

A good credit score will aid you in getting a short term loan with a lower rate of interest. If a lender analyzes you for a short term loan, he will be having a look at your credit score. So a better credit score will help you in getting a more competitive deal.

Moreover, a high credit score will drive the utility companies to treat you well. Such organizations are basically lenders who see and share information with other lenders. It will thus determine the way these lenders conduct a relationship with their borrowers.

It will also check your creditworthiness and help them to decide how they will respond to your late payments. Improve your credit report by not missing any loan and utility payment, not applying for many credits within a short period, and canceling past credit cards if you have any. It is also important t check credit files to get rid of any false information.

So never rush into borrowing. Understand for what duration you require the money as well as how well can you repay it. Thus these four smart steps will aid you to get the best short term loan and prevent you from financial difficulties in the future.

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How Does A Short Term Loan Work?

If you are going through minor problems of cash flow, then a short-term loan will be providing you a great solution. Contrary to traditional bank loans that are repaid over many years, this loan is structured in such a way that it must be paid back within few months.

What Are The Eligibility Criteria For A Short Term Loan?

Short term loans are quite flexible. But still, they are never available to everyone. Mentioned below are some of the eligibility criteria that are essential for a short term loan.

  • You must be a permanent resident of the US.
  • You must be at least 18 years old.
  • You need to be a salaried employee.
  • You must have a stable monthly source of income (for example social security and disability scheme)
  • An open, as well as an active checking account, is required.
  • Applicants with a credit score can also apply.

What Is The Process of Applying For A Short Term Loan?

The application and approval process of a short-term loan will be depending on the state you live in as well as the lender with whom you are applying for the loan. There are various types of short term loans present in the market. But the typical process of a short term loan will involve the following things mentioned below:

Make A Comparison Of The Available Options:

If you wish to get hold of the best loan, then must start to compare the different options available to you. Compare the rate of interest, fees along with the features to avail a loan that will meet all your requirements. You then choose an amount of the loan that you can afford for borrowing and it includes the rate of interest and the total amount that you have to repay.

Submit The Application:

Check the eligibility criteria of the lender. If you fulfill it, then submit your personal, financial as well as employment information that will be needed. You also agree upon a certain term to repay the loan completely irrespective of whether it’s a one-time payment or many. The date for repayments must be agreed on with your lender. It can be frequently completed online.

Wait for The Approval:

The lender is seen to do a credit check for accessing a borrower’s financial history. You will get aware of the loan approval fast after you submit the loan application. If it is successful, you will be receiving the loan. On getting the approval for your short-term loan you will be sent a contract for the same to agree upon.

Get The Loan:

After you have signed the loan contract, you can wait to get the loan in 1-2 working days or maybe very soon. In most cases, the loan is transferred to the applicant’s bank account. But some lenders also offer the option of receiving the cash from the store.

Repay The Availed Loan:

Different lenders arrange for repayment in different ways. You may be asked to sign one ACH authorization that will give the lender the permission of deducting the installments from your account.

Lenders who have physical branches can be provided with one personal check for the loan repayment. You will start to repay the loan on the decided date and continue to repay it until it is fully paid off.

What Are The Fees And Charges Involved In A Short Term Loan?

Lenders and the state that a borrower resides in are the two factors for deciding the fees and charges of a short term loan.

It generally charges a fixed fee on the basis of the borrowed amount. For every $100 borrowed a fee of $10-$30 for each $100 can be expected. A fee of amount $15 for the borrowed $100 is quite standard.

So if it is a 2-week plan such terms will be equating to almost 400% APR. Moreover, lenders will mostly outline monthly as well as annual fees beforehand. If there is any late payment or even a single default on your short term loan, additional fees can be charged.

Timely repayment and payment of all required fees are important and must be done as otherwise, the lender may take you to court. So always borrow such an amount of a short term loan that can be afforded by you and where you will never miss a single repayment.

This is because high late payment fees will sink you into more debt. If you find that you are struggling to make repayments, contact a lender for any arrangement.

So if you are in need of immediate cash suddenly you can apply for a short-term loan. But always borrow the amount that you need and can pay it off within a short time. Borrowing more than the required amount will make the repayment much difficult for you.

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Disadvantages Of Short Term Loan

Before borrowing a loan, decide what amount you require and by when you can pay it off. It will aid you in understanding whether short term or long term is appropriate for your financial requirements.

A short-term loan is useful, but it also comes with few disadvantages as mentioned below:

High Rate Of Interest:

The rate of interest of short terms loans is higher than that of long term loans. Since short terms loans come with great monthly repayments, this can affect your personal and professional life as huge money will be needed for paying off your debt.

It is a short term loan, you will be financing the main debt through a short tenure. Thus you will be paying off a notable amount of your money each month in comparison to the repayment of any long-term loan. 

Risk Of Borrowing Cycle:

Since short-term loans can be easily obtained hence it can make you a regular borrower. Repayment of the short term loan will become impossible. Borrowing one more time will be considered to balance off your original loan thus leading to a huge number of loans.

It will be trapping you as well as your business at risk of the borrowing cycle. So if you cannot repay the agreed amount of a short term loan, you can find yourself requiring another loan, thus causing a risky borrowing cycle.

This will be a huge risk and will cause inefficiency in various business operations. So it is advised not to become dependent on short-term loans regularly because it will be creating bad effects on your life and the productivity of your business.

Negative Effect On Credit Report:

A short term loan can be availed to build up a credit score. But if you cannot repay the loan on the scheduled time, then the consequences are huge. The new debt to the income ratio along with the high cost of the new loan will cause a decrease in the credit rating drastically.

Penalties For Early Repayment:

Some lenders of short term loans are seen to impose such a contract that will limit the loan repayment at a certain period in order to make some profit from that short term loan.

Sometimes, the early loan repayment will cause high penalties because the lender will not be able to make any profit due to this early repayment. Such repayment penalty will compensate the lender and on the other hand, will lead to huge costs as well as penalties to the borrower’s credit.

Huge Risk:

It is expensive to make use of the short term loans for making payments for any long term project. This is because long term loans lock in the present rate of interest. During general economic times, the rate of interest will rise slowly.

A number of short term loans for financing long term projects will make you pay a much higher rate of interest with each of the loans. Thus the project’s cost will be increased.

If your business is not in a good state and you require to renew your loan, then depending on many situations, you might need to pay a higher rate of interest. It might also happen that you are unable to renew that loan for your business.

If you took a long term loan in the beginning, then all these problems would not have happened.

Impact On Daily Operations:

Late payments will make you pay huge penalties. The rate of interest can also get increased on your short term loan and the charges of late fees will add up. you may also be requested to pay off the loan as early as possible.

Some people face difficulty to make such extra monthly payments. Any payment increase can cause a default and you may come at any credit risk. If you try to pay off these loans it can also hinder the performance on other on-going loans or other responsibilities.

You will get into further debt and your situation would not improve. If you fall into more debt unwanted stress will occur on your daily operations.

Lines Of Credit:

Often some businesses build up lines of credit that let them borrow money fast when required. Then they clear it off as they want.

A line of credit will basically allow you to borrow as well as re-borrow money till this credit limit. You will be paying interest on that money which you borrow actually.

It is a flexible and convenient borrowing technique of short term loan that allows you to reduce interest costs.

The interest charged on the lines of credit can also vary with the passage of time.

Dangers Of Secured Loans:

There are few short term loans that are secured. A payday is a type of short term loan that is secured by the check which you draw against the account. An auto loan is another short term loan that is secured by your car’s ownership.

If you cannot pay back the payday loan because of a shortage of money but your lender deposits the check, then it will be bouncing. A lender can take your vehicle during non-payment of an auto loan. Several short terms loans are costly and come with unfavorable needs.

So if you decide to borrow a short term loan, then think and decide wisely.

Keep all the above disadvantages in mind and then take a short term loan for your need.

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How To Chose Payday Loans Online

Best online payday loan for your emergency needs. Some payday loans remove all the documents, which eventually ends up charging you more.

Search for info where payday loans are trustworthy. We can certainly prevent a headache just by picking the established lender.

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Alternatives To Short Term Loans

What will happen when any emergency fund is not sufficient? You might get hold of a quick and easily accessible cash source. One of them is short term loans. But short terms loans come with lots of cons and hence if you can then look out for these alternatives.

Get In Touch With The Creditor:

Do not panic if you have missed any payment or feel like you will miss one. At first, get in touch with your creditors. Some of them will be working out a plan with you in case there is an emergency.

For instance, many utility companies along with hospitals will offer lower rates of interest including 0% interest rate payment plans to ensure that past due balances are cleared off during several months.

Take Help From Friends and Family:

If you require a fast short term loan, do not feel embarrassed to contact your friends and family. You can get some help from them to get free from the debt cycle.

Instead of getting bothered by any predatory loan, it is better to ask for help from your close ones.

Plan A Budget And Save For Emergencies:

Have a look at your income as well as expenses. Ensure that you never spend more money than you actually earn. Avoid any unnecessary spending of money.

Also try to build savings so that during emergencies, there is a cushion for falling back on rather than turning to any credit for aid.

401(k) Loan:

If you are employed and in a financial problem, then this loan will be an excellent option for borrowing. It is much better than a short term payday loan.

Since you are borrowing it from yourself, the interest that you will be paying back will actually be the money that you are putting back in your own retirement fund. You can borrow $50,000 or maybe half of the total money present in your account; the one which is less.

The repayment time is within 5 years and quarterly payments are at least required.

Reverse Mortgage:

Homeowners who are aged 62 years and more have an option of a reverse mortgage during a financial crisis. With the help of this, a property’s equity will get converted into a tax-free payment for you. Money can be taken upfront in the form of a line of credit.

You can receive payments every month for a specific term or maybe for that time till you reside there. You can also select mixed options.

You will be keeping the title but the lender will be paying every month for buying your home with the passage of time. As long as you live in that home, there is no requirement for repaying the loan.

After you move out or die, the loan will become due and your house needs to be sold for loan repayment.

Avail A Credit Card Cash Advance:

If you borrow any cash against the line of credit of your credit card on the card, then it is known as a cash advance. A cash advance can be availed during an emergency. If you do not wish to apply for a short-term loan, then a cash advance can be thought of.

But they come with a high rate of interest and extra fees.

The APR of a cash advance is 5% high than the purchase APR. You will also be incurring a 3 or 5 % fee on every cash advance that you will take.

It may not be a perfect solution, but little cheaper than the short-term payday loan or title loan during an urgent cash crisis.

Look Out For HELOC:

To cover up short term emergency requirements, you can leverage your home equity. A HELOC better known as a home equity line of credit is one revolving line of credit extended to any homeowner who uses their home as collateral.

The amount of money that you will be able to withdraw will be depending in the value of your home, the remaining balance of the mortgage, household income, and credit report. HELOC will let you borrow the maximum money or maybe as much as you require.

Choose the schedule for repayment and you can set it for less than 10 years or even more than 20 years. But by the end of the term of the loan, the complete balance must be cleared off. You will be paying the interest on the borrowed amount. But you can deduct it from your income tax.

An unemployed person will hardly be approved for this type of loan.

Although short term loans are useful for personal and business use since they come with a short amount and tenure along with a high rate of interest, people are seen to avoid it if possible.

During times of emergencies, it is better to opt for alternatives to short-term loans.

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Advantages Of Short Term Loan

An option of generating money for a stipulated time frame is called short – term financing. Short term lending has established itself as a very favorable service amongst people. Let’s try to figure out the types of each of the credits and their advantages.

Cash Flows Solving The Issues:

Even the best of us have faced a slow season sometimes in their life. Small businessmen struggle to survive during these times and the risk of dissolving the enterprises pertains.

But with meticulous planning, these situations can be averted but even a good strategy fails to help, short term loans can offer significant help. We can utilize the funds to pay the bills of the suppliers and the other operational costs that are associated.

This can help you in another way, by managing your credit card bills while you wait for other factors to be on track. If the slow season comes around the time when you are supposed to pay your taxes, these short term loans can be used to pay the same, thus saving you from the trouble of the IRS.

A short term loan takes lesser time to get processed. So, if your requirement is to get access to the funds really fast, a short term loan is the answer to your problems.

Fast Money:

The greatest advantage of a short term loan is that it allows you to get hold of the funds real quick. In case of an emergency situation, where the requirement of money is dire, short-term loans can provide the funds very quickly without much hassle and with a short documentation process, and hence the time required is much much less than any other forms of loan.

Lesser Rate Of Interest:

This does not mean that all short term loans come with a low interest rate, like for example, a lender can charge a rate that is higher if a secured asset can’t be produced.

Although short-term loans against mortgages offer a low interest rate which means that money can be saved in both ways, once by the rate of interest applied and secondly by the time needed to acquire the loan.

Zero Collateral:

Short term loans can be taken without keeping any of your assets as a tie-up with it.

This tying up of your property is termed as collateral and when you decide to use something as collateral, it automatically puts you a risk parameter because in case of a default that asset will be seized, but in such a loan you don’t need to put anything at risk to get the funds.

Though short-term loans don’t really count mortgages it also may not require any of your assets to be kept as collateral.


It is not easy to predict or foresee how your finances will shape up in the future. Neither nobody can tell exactly how the economy will turn up in the next 20 or 30 years.

If you take a loan for a very long term, you will have to keep paying for a long time in the future, even if your financial situation gets worsened. Rather it is much easier to foresee your immediate future and budgeting for the same with a short-term loan is much more feasible.


You may find the terms to be extremely adaptable and flexible while working with multiple short term loans. For instance, you can keep paying the interests of every month, and then the remaining balance can be paid off at a later date as per convenience.

This will allow you to go for a loan tailor-made for your situation.

Less Pressure:

If you owe money for a long duration to someone and simultaneously see the interest rates getting hiked, it not only affects you emotionally but it takes a toll on your psychological health as well.

Opting for a short term loan will rid you of the loan obligations quickly and you can live freely after shaking off that burden.

Enhancing Credit Rating:

The credibility of businessmen is defined by the credit ratings. When they opt for a loan or some credits, they basically build up their credit history.

This goes without saying that these loans or credit forwards are meant to be repaid in time to ensure that that credit rating is positive else it goes for a toss. Now, why businessmen prefer short term loans are because they are capable of giving their credit ratings a major boost.

By paying these short-term loans they ensure that their credit ratings remain good enough to get a longer and bigger term loan in the future because it has been noticed that small entrepreneurs often struggle to maintain a good credit rating.

So as we can see, there are some very obvious advantages of online loans as they generally help us to evade an unforeseen situation quickly. But it is really important to remember that while choosing from an online lender always prefer those with a good reputation in the market.

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