So What Exactly is a Payday Loan?

January 17, 2016

 

What is a payday loan and payday lender? Cashloancity.com is here to help explain so if this is your first time looking for a cash loan lender there's no need to worry.

 

How do payday loans work and where can I find information about them?

A payday loan is a short-term loan of a small dollar amount usually offered by businesses other than banks. It is called a payday loan because the amount of money lent to the borrower is supposed to be enough to help them get through to their next payday. Each state has its own laws surrounding payday loans, such as the amount of money companies can lend to their customers.

Available payday loan information varies by lender. All licensed payday lenders are required to make certain disclosures available to their customers. The information available may vary according to whether or not the payday loan is an online payday loan, or an in-store payday loan. Always consult the available information in your state to ensure you apply with a legally licensed lender. Any payday loan info that seems too good to be true probably is. Be careful and always choose a licensed, direct lender. Cash Loan City requires that an approved lender be a member of OLA "Online Lending Alliance".

 

How does the payday loan application process work?

You can apply for a payday loan, also called a cash advance, online or in a physical payday location. The application process to be approved for a payday loan is easier and faster if you apply for payday loan online because there is less paperwork and no faxing. For an online payday loan, you will need to provide personal information such as your Social Security number, banking information and your contact information.

  • When applying for a payday loan, the fees and interest should be clearly explained Too much fine print is usually a bad sign. Payday loans are not cheap, but the right payday loan will be upfront about costs.

How much does a payday loan cost and how do I know if the terms are correct?

Payday loan interest rates and the fees associated with them vary from state to state. Not all payday loans are created equally, so you must compare the interest rates, fees, terms, and conditions before applying. Once you find a low interest payday loan and you are approved, the money will usually be in your bank account the following business day. Make sure to stay on top of your spending to pay back your loan when it is due to avoid extra fees and unwanted consequences. Always refer back to the original pay day loan terms included in the contract you signed to take out the loan.

 

How do I choose a payday loan lender?

Not all payday lenders are created equally. To find a reputable payday lender online, look for the follwing criteria:

  1. Is the payday lender a Direct Payday Lender?  Look at the bottom of their page. If it says that they are not a direct payday lender, they may sell your information to hundreds of other companies, which means you may get many unwanted e-mails and phone calls. This is perhaps the most important part aspect of how to choose a payday lender.

  2. Is your lender located in the United States? Again, check on the bottom of the website or in the contact information section to make sure you’re dealing with a lender located in the United States. If the site lacks real contact information, don't apply.

  3. Is your payday lender’s website secure? Secure websites have a little picture of a green lock next to the website address. If you don’t see it, your application information isn't safe. You could receive calls and emails from third party marketers trying to sell you their version of a payday loan.

Now that you know what a payday loan is, how a payday loan works, how to choose a payday loan, we encourage you to borrow responsibly and thank you from cashloancity.com

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This service is not available in New York or to New York borrowers due to interest rate limits under New York law.

 

 

Material disclosure
APR Disclosure. Some states have laws limiting the Annual Percentage Rate (APR) that a lender can charge you. APRs for installment loans range from 6.63% to 225%, and APRs for personal loans range from 4.99% to 450% and vary by lender. Loans from a state that has no limiting laws or loans from a bank not governed by state laws may have an even higher APR. The APR is the rate at which your loan accrues interest and is based upon the amount, cost and term of your loan, repayment amounts and timing of payments. Lenders are legally required to show you the APR and other terms of your loan before you execute a loan agreement. APR rates are subject to change.

Material Disclosure. The operator of this website is not a lender, loan broker or agent for any lender or loan broker. We are an advertising referral service to qualified participating lenders that may be able to provide amounts up to $5,000 for installment loans, and up to $35,000 for personal loans. Not all lenders can provide these amounts and there is no guarantee that you will be accepted by an independent, participating lender. This service does not constitute an offer or solicitation for loan products which are prohibited by any state law. This is not a solicitation for a particular loan and is not an offer to lend. We do not endorse or charge you for any service or product. Any compensation received is paid by participating lenders and only for advertising services provided. This service and offer are void where prohibited. We do not control and are not responsible for the actions of any lender. We do not have access to the full terms of your loan, including APR. For details, questions or concerns regarding your loan please contact your lender directly. Only your lender can provide you with information about your specific loan terms, their current rates and charges, renewal, payments and the implications for non-payment or skipped payments. The registration information submitted by you on this website will be shared with one or more participating lenders. You are under no obligation to use our service to initiate contact with a lender, register for credit or any loan product, or accept a loan from a participating lender. Cash transfer times and repayment terms vary between lenders. Repayment terms may be regulated by state and local laws. Some faxing may be required. These disclosures are provided to you for information purposes only and should not be considered legal advice.


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