Payday loans are short-term loans — typically in relatively small amounts — designed to help people cover unexpected emergencies or expenses. Understanding your options when it comes to payday loans and alternatives can help you make the best financial choice for you or your family when you’re faced with such a situation.
Keep reading to find out more about online loans and what the best “payday loan” is.
In this post, we will review the following:
- Are there legit online loans?
- What is the easiest loan to get approved for?
- What is the best online payday loan?
- Online loan FAQs
Are There Legit Online Loans?
Yes, many legitimate lenders offer loans online. You can find options for personal, car, mortgage and student loans online, and many major banks now offer some services in fully digital formats to meet their customers’ needs.
At the same time, there are definitely online loan scams, and it’s important to be aware of potential red flags to avoid those. Some red flags include:
- Confusing fee structures. Legitimate lenders provide ample documentation that spells out fees, interest and all costs associated with a loan. They’re also available to answer questions to ensure you understand the costs. If a lender doesn’t seem willing to talk about these factors or is providing you with explanations that seem purposefully confusing and dense, it’s a potential red flag.
- Loans offered via email or phone when you didn’t apply. If you didn’t apply for or express interest in a loan, look at these offers with suspicion. That’s especially true if they seemed to come at just the right time when you needed them most. Scammers often troll social media and other outlets to find people who might need money badly. They then contact these individuals with a too-good-to-be-true offer in a bid to steal money or get personal information that can be used for identity theft.
- Lenders who aren’t registered in your state. If a lender isn’t registered in your state, it should not be offering you a loan.
- Requests that you immediately wire money. Legitimate lenders will not demand that you wire money to a specific person immediately or request deposits in the form of nontraditional payments like gift cards.
What Is the Easiest Loan to Get Approved for?
The easiest loan to get approved for is one you’re qualified for. Take time to research online loans, looking for information about credit, income and other requirements. Some common requirements include:
- Having an address in a specific area. Wise Loan, for example, can offer loans in Delaware, Idaho, Louisiana, Mississippi, Missouri, South Carolina, Texas, Utah and Wisconsin. If you’re outside of the states Wise Loan is licensed to provide loans in, we won’t be able to approve you for a loan.
- A certain credit score. Many lenders have a minimum credit score requirement. If your credit score falls below that requirement, they may automatically deny you. Wise Loan doesn’t require good credit and works with people with all types of credit histories, helping them build credit by reporting timely payments on Wise Loan loans to two of the three major credit bureaus.
- Appropriate income. You should always ensure you have enough income to make the payments on any loan you take out. Many lenders ask for proof of income to ensure this is the case.
- A checking or savings account. Online loans are typically funded with a transfer to your checking or savings account. If you don’t have one of these accounts, you may not be able to receive funds even if you could be approved for the loan.
- Photo ID. In most cases, you do have to prove your identity by uploading a picture of an approved form of photo ID.
What Is the Best Online Payday Loan?
The best online payday loan might not be a payday loan at all. There are differences between traditional payday loans and installment loans like those offered by Wise Loan, and typically, installment loans offer more benefits and fewer drawbacks than payday loans.
Overall, though, the best loan for you is one that:
- You can afford to pay back. Read the fine print and ensure you’re not getting caught up in a payday loan cycle that can trap you in increasingly expensive rollovers. Instead, consider installment loans that come with affordable weekly, biweekly or monthly payments.
- Offers the lowest fees or interest. Shop around and find a loan that offers the best possible rates. If you don’t have good credit, you won’t be able to access the best rates on the market, but you can find the best rates for you.
- Reports to all three credit bureaus. This is especially true if you’re trying to build credit for the future. Wise Loan reports to all three credit bureaus to help you demonstrate you can pay your bills on time. That can provide a positive impact on your credit score.
If you’re interested in a short-term loan that won’t trap you in a payday loan cycle and can help you build your credit, apply for a Wise Loan loan today.
Online Loan FAQs
How can you get cash immediately?
Online loans with instant funding options let you get cash almost immediately. First, you have to qualify for the loan. Wise Loan offers options that don’t require great credit.
Second, you have to apply early enough in the day to ensure instant or same-day funding. Try to apply before lunch for the best results.
Finally, you typically need a bank account associated with a Visa or Mastercard debit card. This is because instant funds are sent via the card networks, which is faster than normal ACH transfers. Those can take a day or more to process.
How do online loans work?
Online loans work like any other loan, except that the approval and funding process takes place via digital methods rather than in-person options. You have to complete an application and the lender reviews it against its approval guidelines. If you meet those requirements, you can be approved for a loan. Funds are typically sent via electronic funds transfer or other digital means.
What is the quickest online loan?
The quickest online loan is one with minimum requirements that’s easy to apply for and allows instant funding. Wise Loan offers this type of loan. Find out more about instant funding.
How do you get a loan when no one will give you one?
Credit can be a Catch-22 paradox that’s hard to get out of. You need good credit to get approved for many types of loans. But you need a loan to build good credit. Some ways to get out of this conundrum include:
- Applying for a loan that doesn’t require great credit, such as those offered by Wise Loan
- Asking a loved one with good credit to cosign a loan for you
- Waiting to apply until you have time to improve your credit by making consistent timely payments on existing debt and paying down balances on credit cards
Frequently Asked Questions
What app can I use to instantly lend money?
An idea for a business should not only focus on the benefits, but also the features. It’s about solving problems for people. You need to start by identifying what problem you are going to solve. The next step is to identify who your customers are and how you can help them. Only then do you move on to developing an MVP (Minimum Viable Product).
How can I borrow money fast?
We are an online loan company that helps customers get loans for any reason. We offer short and long-term loans, with low-interest rates.
Since 2010, we have been serving this community and have earned our reputation as an honest lender.
We offer fair rates on all loans that we provide and ensure that you receive the loan you need.
What is the fastest loan you can get right this moment?
A small-business owner may request a line from his bank. The banker must know the owner’s requirements and how to structure the loan. A professional who is experienced can help him if he lacks the necessary experience. He doesn’t need to do this himself.
If you want something less risky, consider taking out an unsecured personal loan. These loans are simple to obtain and require little paperwork. They have higher interest rates than secured loan but they are generally easier to get.
How is the payday loan interest calculated
Payday loans are often used as an alternative solution for short-term credit when customers need cash fast but have a poor credit history.
These loans usually have interest rates between 300% – 1000%.
Payday loan interest rates are typically based on the borrower’s credit score and repayment capacity.
The interest rate will be lower the higher your credit score.
As a rule, you should avoid borrowing money if your monthly income is less than $1,000.
If your available monthly income falls within this range, your best option would be to consider other forms of financing, such as personal loans.
Consider looking at other options such as auto loans, bank accounts, credit cards and bank accounts if you earn more that $1,000 per month.
Statistics
- A typical two-week payday loan with a $15 per $100 fee equates to an annual percentage rate (APR) of almost 400 percent. (consumerfinance.gov)
- Unlike other personal loans, payday loans often feature interest rates ranging from 391% to 600%. (timesunion.com)
- The loans usually can be rolled over for additional finance charges, and many borrowers—as high as 80% of them—end up as repeat customers.89 (investopedia.com)
- In California, for example, a payday lender can charge a 14-day APR of 460% for a $100 loan.6 Finance charges on these loans also are a significant factor to consider, as the average fee is $15 per $100 loan.1 (investopedia.com)
- Upgrade The company offers a 3 percent cash back on Auto, Health, and Home categories and a 1 percent cash back on the rest. (abcactionnews.com)
External Links
consumer.ftc.gov
ncsl.org
How To
How to get Car Title Loan
A car title loans is a service that allows those who need cash fast to borrow against the security of their vehicle. The lending company will usually present themselves at the borrower’s residence with a completed form, along with proof of vehicle ownership. After all of these documents have been verified, a cash-advance can be granted. It is usually between $500 and $3500. However, this depends on the state laws. The funds are then deposited directly into the borrower’s bank account, minus a small fee charged by the lender.
Here are some benefits of car title loans:
- Quick Cash Advances: Most lenders require borrowers that they repay the loan within 7 Days. This means you can get the money you need quickly and without waiting for your bank’s approval.
- You do not need collateral to qualify for a vehicle title loan. Additionally, most lenders do not accept checks or creditcards so there is no risk in getting your check returned or having your card declined.
- Easy Application Process: Online applications are often easier than filling out forms and waiting to be approved by lenders.
- Low-Interest Rates: Many car title loan providers charge very low rates, sometimes even offering free interest!
