Loan takes many forms, such as personal loans, mortgage loans, car loans, house loans, home improvement loans, personal loans, and debt consolidation loan, for the specific purposes. Banks and financial institutions, however, extend loans only to individuals with a good credit score, as reported by the credit monitoring agencies. A good credit score requires a history of having availed loans in moderation, relative to the individual’s available credit limit, and making prompt payments. People who have defaulted on loans, or who have not availed any loans before, would not have a good credit score, and would therefore find it difficult to secure loans. Payday loan is an option for such people.
Find the Right Payday Loan for You!
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Payday loans, also known as cash advance loans, are loans issued to salaried employees, or people with other definite source of income, based on their paycheck or income source as guarantee. Unlike conventional loans, payday loans require no collateral, or extensive paperwork.
Very often, the only requirements are proof of income, an active bank account, a valid telephone number, and identity proof. Most payday loan providers process the application within few days, and some even offer same or next day processing. Since there is no collateral involved, payday loans are usually for small amounts, and have a short repayment time.
Payday loans have received some bad press owing to the high interest rates. However, when used right, it is convenient to meet short term cash emergencies, or tide over temporary cash flow problems. The key to leveraging pay-day loans is to consider it as a cash advance, to meet some immediate requirement, such as to make some payment in time, to avoid steep penal interest, or a bad credit score. A pay day loan may also be considered as loans for bad credit, as a poor credit score would invariably mean that banks would reject the application for conventional personal loan, mortgage loan, car loan, and most other type of loans.
Top US payday loan companies
- 100 Day Loans
- Net Loans USA
- Fax Free Cash
- My Cash Now
- Pay Day One
- Sonic Cash
- CashNet USA
- National PayDay
- My PayDay Loan
- Check n Go
Loan Company Comparison
100 Day Loans, NetLoans USA, and FaxFreeCash, are almost similar. All of them are available across 50 states, offer loans up to $1500, with a APR between 36 percent and 651.79 percent. A loan of $100 costs anywhere between $5 and $25 for two weeks. All of them offer anywhere from three to unlimited rollovers, depending on state laws.
MyCashNow, available in 39 states, offers a maximum loan of $1000, and the terms and APR vary considerably from state to state. There are no rollovers permitted.
Pay Day One, available across 31 states, has an APR of 586.61 percent. The cost of a $100 loan, for two weeks, is $22.5. No rollovers are permitted.
Sonic Cash is available across 50 states, but offers a maximum loan amount of only $500, at 651.79 percent APR. The cost of a $100 loan for two weeks is $25. The maximum rollovers permitted is three.
CashNet USA, available across 31 states, offers a maximum loan of $2250 at an APR between 243.25 percent and 683.04 percent. The cost for a two week loan of $500 is anywhere between $9.00 and $26.00. A maximum of four renewals or extensions are permitted.
National Payday, available across 50 states, offers loans from $300, at an APR of 651.79 percent. A $500 loan for two weeks costs $25. The company does not allow any renewals. MyPayDay Loan, like National PayDay, is available across 50 states, at an APR of 651.79 percent. The maximum loan limit is however, $1000, and it is possible to renew the loan unlimited times, subject to state laws.
Check n Go offer payday loans up to $1500, available across 1000 stores across USA, or online. The APR varies considerably, across states.