Best Payday Loans of 2024
Payday loans offer a way for those with low credit to get
quick access to cash to pay for unexpected expenses. It’s important to
know that these loans have high interest rates and can result in
overdrafts and damage to your credit score if you’re not careful. While
we recommend avoiding payday loans wherever possible, we’ve found
lenders that combine availability, reliability and industry average
rates so you can make an informed choice if you do need to find a payday
lender.
Top Ten Reviews recommends looking for alternatives to payday loans
wherever possible. A payday loan should not be your first option. If
you are looking for a payday loan to pay bills or other expenses, we
recommend exploring personal loans. If you are considering a payday loan
because of an emergency expense, we recommend exploring a cash advance
on your credit card or a checking line of credit, sometimes called an
overdraft line of credit.
If you are looking at payday loans because of
inconsistent paychecks, we recommend looking at some new apps that help even out paychecks. We also recommend exploring a line of credit or overdraft protection on your checking account. If you already have
payday loans and continue to roll them over, we recommend contacting a credit counseling agency.
If a payday loan is your chosen option, we’ve reviewed lenders that
are widely available and don’t have excessive fees. When signing up for a
payday loan you can expect high fees, the potential for overdraft fees
if you don’t have enough in your bank account when the loan comes due,
and if you chose to take out another loan to pay off the previous one,
you could end up paying double or triple the original loan in fees
alone.
Top Best Payday Loans Services of 2018
Why Use Payday Loans?
We’ve been reviewing and researching payday loans for
over 10 years. We monitor the latest industry trends and regulations to
ensure that we stay up to date. For our most recent reviews we
considered 20 different lenders before choosing these 10.
To create our lineup, we vetted payday lenders to find those
that offer services in 5 to 20 states and have been active for at least
five years. These lenders all offer the option to apply online, and many
have stores you can find through the lender’s website. Each of these
lenders is a direct lender – we did not consider brokers.
Payday loans have been highly regulated. Currently, these
loans are only legal in 32 states, and each state has different
restrictions on the total amount, interest and length of the loans. For
the purposes of this review we included lenders whose APRs fell within
the national average range, but be aware that rates can be higher or
lower depending on the state you live in.
Best for Online Payday Loans: LendUp
LendUp is an online lender with rates that compare to those
offered by storefront lenders. Some online lenders are brokers, but
LendUp is a direct lender that provides the funding itself, so you won’t
have to worry about getting constantly emails with offers. While
applying for a payday loan online is simple and can help you avoid any
stigma associated with going into a store, know that online payday
lenders aren’t all equal. Many are brokers that sell your information to
other lenders, resulting in a flood of calls and offers. LendUp doesn’t
sell your information, so you won’t be hounded by salespeople.
Best for Flexible Terms: Rise
Best for Unemployed Payday Loans
If you’re unemployed but still need a payday loan, you may
still be able to get one through Check ‘n Go, provided you have another
source of income and can offer proof of that income to the lender. Many
lenders allow you to use Social Security or Disability benefits to
borrow. Additionally, if you are self-employed, work freelance or
contract you may also be able to take out a payday loan through Check ‘n
Go.
Proceed with Caution
Since the payday loan industry is highly regulated, it’s not
uncommon for even the most reputable of lenders to have lawsuits or
regulatory fines in their pasts. Mergers and acquisitions are also
common, so if you take out a loan, check periodically to see if your
loan is still owned by the company you originally borrowed from. Make
sure you stay current on your payments; payday lenders make frequent use
of collection companies to collect delinquent loans.
Avoid Roll-Overs
This is one of the biggest risks of taking out a payday loan.
If you can’t pay off the loan, you may have to roll over that loan by
taking out another one to pay it off. This can get expensive fast and is
how these lenders trap you in a debt cycle. The specifics of rolling
over a loan depend on the state you live in. Some states don’t allow it
at all, and some require a percentage of the original loan be paid off
when you roll over. Some states also have cooling off periods or other
restrictions on how many payday loans you can borrow at once. In
general, you can expect to pay an additional fee to roll over the loan,
and it’s possible for those fees to cost you more than the original loan
itself.
How Do I Apply for a Payday Loan?
A payday loan is often used as a cash advance on a paycheck.
Payday lenders add a finance charge to the loan when you sign up for
one, and you’ll know the exact amount you’ll need to pay back. The
average service fee is $15 per $100 borrowed, but it varies with the
lender and the state you live in. So if you need a $300 cash advance
loan, you’ll need to pay the lender $345 when it comes due.
Unlike most other loans, a payday loan is payed off all at
once. You’ll know the full amount when you sign up. The finance charge
acts as the interest on this loan. When you see rates quoted, know that
those rates are extrapolated over an entire year. But even though these
are short term loans, you’ll still be paying a premium.
How you apply and repay depends on whether you apply online or in person.
In-person
To apply for a payday loan at a store you’ll need to meet the minimum requirements for the lender, which typically include:
- Proof of employment or income
- Being at least 18 years of age
- Having a valid ID
- Some lenders may have additional requirements such as a minimum amount of income. Requirements vary by state.
When you’re approved, you’ll sign a check for the loan amount
and finance charge, post-dated to the end of the term. So if you’ve
gotten a loan for $300 with a $45 finance charge, you’ll write a check
for $345 post-dated two weeks from the day you sign up. When those two
weeks are over, the lender will deposit your check.
Online
The requirements for applying for an online payday loan are similar to a storefront loan. You’ll need:
- A steady source of income
- A valid Social Security number or Individual Taxpayer Identification Number
- An active checking account
- An active email address
Once your application is approved, your loan will either be
directly deposited into your bank account (which usually takes one
business day) or available as a prepaid debit card. If you apply online
at a lender that also has stores, you can pick up your money yourself.
Payday Loan APRs
Unlike a traditional loan, with a payday loan you know how
much you’ll pay upfront. Payday lenders apply a service charge to each
loan. The current industry average is $15 per $100, which would be an
APR of 391% if extrapolated over an entire year. So even though these
loans are for a short period of time (usually 14 days), they are still
more expensive than credit cards and other types of loans. The average
APR on a credit card is around 20%.
Think of it this way: If the 391% APR on a payday loan
amounts to $15 over a two-week period, a 20% APR amounts to an $0.80 fee
on that same amount. So you can see that payday loans are an expensive
option.
In 18 states, these loans are illegal. In the remaining 32
states where payday loans are legal, rates and the amount you can borrow
vary depending on the state you live in.
What to Know When Applying
Here are some other things to watch out for when considering a payday loan.
Look for Direct Lenders: A direct lender
administers the loan themselves, as opposed to a broker that uses your
information to find a lender willing to give you a loan. Brokers tend to
be more expensive, less secure and extra persistent with solicitations.
Same Day or Instant Approval: One of the
main appeals of a payday loan is the ability to get quick cash. Signing
up for a loan in a store will give you immediate cash, and an online
lender will usually deposit your cash in one business day at the latest.
Payday Loans for Bad Credit: A credit check
isn’t involved in applying for a payday loan, and repayment isn’t
reported to any of the main credit agencies. These loans do nothing to
build credit, but failure to pay them back can result in the loan being
sent to a collection agency, which does have a negative impact on your
credit.
Lenders on Tribal Lands: In recent years,
several lenders have found a way to skirt laws restricting predatory
lending by incorporating on Indian reservations. These are typically
online payday lenders, and they charge high rates. If you use an online
lender, check where they are based.
Watch Out for Overdrafts: Since the payday
lender will have either a post-dated check or access to your bank
account, the company will deposit the check or withdraw money from your
account when the loan comes due. The lender will do this even if you
don’t have enough in your accounts to cover the amount, which can lead
to overdraft fees. If you don’t have enough to pay back your loan, it’s
very important to contact the lender and work out either an extension or
a payment plan. We don’t recommend rolling over a payday loan by taking
out another one to pay it, but even that may be preferable to paying
repeated overdraft fees.
Payday Loan Alternatives
Before getting a payday loan, we recommend exploring
alternatives. While payday loans bill themselves as being for
emergencies, the vast majority of people use them for day-to-day
expenses. Because of high interest rates, using these loans excessively
can result in having to roll them over by taking out a new loan to pay
off the existing loans. If you find yourself in one of the following
situations where you’re considering using a payday loan to pay regular
bills, we recommend exploring some of these options.
If You Have Bad Credit: One of the main
reasons people turn to payday loans is that there is no credit check
involved. So people with low credit scores often find themselves with
few options when they need a loan, especially since credit is often a
requirement to get a personal loan.
We Recommend
Credit Unions: Local credit unions often
have less strict credit requirements than large banks. A personal loan
from a credit union may have a short term, but it will have a lower
interest rate.
Finding a Cosigner: You may want to find a
friend or relative with good credit to cosign with you. Having a
cosigner will give you better terms and a lower rate. Remember that
you’re not the only one on the hook for the loan though – if you fail to
pay it back, your cosigner will be responsible for the debt and you
could put their credit score at risk.
If You Need an Advance on Your Next Paycheck: One reason you
may consider a payday loan is you need extra money because of a smaller
paycheck. If you depend on tips, work as a freelancer or work part-time,
your pay fluctuates from paycheck to paycheck. And if you have a low
week, you may need to find a way to get cash until your next paycheck.
We Recommend
Even: This mobile app averages your paychecks and ensures that you always have a standard amount in your bank account.
Activehours: This relatively new app gives you immediate access to money after you complete a shift.
If You Need to Roll Over Loans: Payday loans are a temporary
solution and are not meant to be long-term. If you find yourself in a
situation where you need to take out another payday loan to pay off a
previous one, we recommend exploring other options to improve your
financial health.
We Recommend
Credit Counseling: A credit counseling
agency can help you set up a budget and will work with you to negotiate
lower payments. Many will enroll you in a debt management plan, which
will combine your debts into a single payment you make to the credit
counseling agency.
Alternatives to Avoid
Not all payday loan alternatives are created equal, and some
carry just as many risks as your regular cash advance payday loan. Below
are some examples of alternatives to watch out for.
Title Loans: A title loan operates on a
similar principal to payday loans to provide immediate cash for those
with bad credit. With a title loan, you sign over the title of your car
as collateral. If you don’t pay back the loan, the lender seizes your
car. Title loans have high APRs and a variety of fees, as well as the
risk of losing your property.
No Credit Check Loans: These loans, also
called payday installment loans or no-credit-check installment loans,
are very similar to payday loans, but have longer terms. You may be able
to borrow more and will have more time to pay it back, but the APRs are
comparable to payday loans, so they can be more expensive in the long
term.
Do you need personal or business loan?
Do need a personal loan?
Do you want to buy a car?
Do you want to refinance?
Have you lost hope and believes there no way out, and your financial situation burden still remains, please contact Mr Steven Ryan for more information,email him on Stevenryanfinance@gmail.com
Do you need personal or business loan?
Do need a personal loan?
Do you want to buy a car?
Do you want to refinance?
Have you lost hope and believes there no way out, and your financial situation burden still remains, please contact Mr Steven Ryan for more information,email him on Stevenryanfinance@gmail.com