Top 6 Ways to Get Instant Cash Loans from Online Payday Lenders
If instant cash loans aren’t an option at your local bank, you may consider getting them from a payday advance company.
These instant cash loans are referred to as payday loans (also referred to as a payday advance or cash advance loans) because they allow you to borrow funds against your next paycheck, or pay day.
Payday loans provide you with immediate access to money so that you can take care of financial obligations that are short term. But just how do you gain access to these instant cash loans without being scammed online?
This guide will discuss ways to get instant cash loans from online payday lenders as well as the legitimacy behind instant online loans.
You’ll learn about the requirements and what some of the advantages and disadvantages are of getting instant cash advance loans. Now, let’s take a look at what instant online loans are all about and the different ways you can access them.
What People Want to Know About Getting Instant Cash Loans from Online Payday Lenders
There are a number of individuals with questions about payday loans, and it’s understandable. According to a 2012 study by Pew Charitable Trusts, roughly 12 million people use payday loans every year, and some even use instant cash advance online services.
However, many individuals do not know how to go about getting instant loans online. Here are a few concerns people have regarding instant cash payday loans and instant cash advance online services:
- How do instant online loans work?
- Are there any age requirements to get an instant cash advance online?
- How do you find instant payday loan lenders?
- Can you get instant bad credit loans with no job?
- Are instant online loans legit?
- What qualifies as proof of income if I want to get instant bad credit loans online?
- Are there any instant bad credit loans?
Pros and Cons of Instant Cash Loans
There are several advantages and disadvantages that you should be aware of when considering getting instant cash from an online service.
It’s important to assess these points so you can determine if instant loans found online are the best option for you. Here are a few points to consider about instant online loans.
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You can get cash immediately from instant payday loans online.
To get an instant cash advance from certain providers that offer instant loans, all that will be required is showing proof of your last paystub.
Many of these instant cash advance websites would not even require you to show a certain time of employment, unlike banks, but rather the most recent paystub and a way to verify that you do currently work or have some form of consistent income to sustain paying back the instant cash advance.
Instant cash loans have fewer requirements than standard loans.
Credit card companies and banks will require a certain credit score to obtain a loan. Also, these same financial institutions will require you to show proof that you have lived at a certain location for a specified period of time to show stability.
On the other hand, instant cash loans will overlook that requirement and just focus on requiring that you show your most recent paystub to get the instant cash advance.
If you’re looking for instant bad credit loans, instant online payday loans can be an option.
Countless banks and even credit unions will turn down clients that are in need of money due to their credit history. However, providers that offer instant online payday loans don’t require a credit check.
You don’t have to be a longtime customer with the prospective provider of instant online payday loans in order to get a better rate or be approved for instant online loans.
New and existing clients that want instant loans online will be treated in almost the same manner. In contrast, if you’ve been with a bank for 20 years, it can still easily reject you from getting a loan.
Many instant payday loan lenders don’t play fairly or by the rules.
For example, the Consumer Financial Protection Bureau found that a payday lender that offered instant loans online was not fully disclosing the loan details to its clients.
Clients that took out a loan from the company prior to it shutting down were unaware of the extra interest rates and countless fees that were being tacked onto the loan.
The company did not state any of these extra costs in its terms and agreement.
Using instant payday loans online can get you into more debt if you miss your payments.
One of the main reasons people use instant payday loans is to quickly obtain money of a small amount in order to pay off a debt.
The issue with these small loans and even instant online loans are that interest rates are above 20 percent, and some of the rates for these instant loans are based on weekly rates rather than monthly rates.
Furthermore, you can be hit with multiple fees if you are late in making payments, in addition to the high interest rates, which can make a $500 loan quickly turn into nearly $1,000.
Instant online payday loans often have exuberant interest rates.
As noted previously, payday lenders will give their clients a rate of over 20 percent on their loans.
For example, in South Dakota, there is no cap on how much payday loans can charge clients. Due to that, the average payday loan in the state is at 652 percent. With interest rates that high, most clients that take out these loans will be unlikely to pay back the loans.
Instant online loans from payday lenders often target financially disadvantaged individuals.
As noted prior, some states, such as South Dakota, don’t allow a cap on the interest rate payday lenders can charge.
Unfortunately, this helps contribute to the reason why low-income workers end up being primary targets for payday lenders.
However, some states have prohibited the use of payday loans. New York, for example, has banned payday loan companies from providing any type of service in the state, regardless if it’s in person, over the phone or online.
Other states, such as South Dakota, are currently looking to place laws that will restrict the maximum amount of interest that the instant cash company can charge a consumer. The downside to this is that if the company takes a financial hit, then it may not be around much longer as this will hurt its profit margin.
Many states are looking to ban instant payday loan lenders from ever operating in their states.
Currently, 18 states and the District of Columbia have banned these types of companies from operating.
If you take out a payday loan and later learn that the company is banned, you may run the risk of the company requesting its money back much sooner than the expected deadline.
Other states, such as Colorado, have put a limit on the period for paying back instant cash advance loans.
Due to the short time frame and the credit risk of its customers, a company usually adds very high interest rates and fees to make a good profit margin off each of its clients.
If you’re unable to pay back the loan, you run the risk of having your wages garnished in certain states.
If you think you can skip out on paying back instant cash lenders, then think again.
There are known cases where payday lenders took clients who were unable to pay the debt to court and even had the judge garnish their wages until the loan was paid off.
What makes it worse is that, during the time to pay it off, you could incur even more fees and take even longer to pay off the loan.
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6 Ways to Get Instant Cash Loans from Online Payday Lenders
1. Check with reputable sites to find instant payday loan lenders.
It is very important that you research the company and ensure not only if it can legally operate in your state but also that it has a high customer service review on reputable sites such as the Better Business Bureau. Many online companies provide instant loans and are legally registered with the state they operate in, but make sure you verify their legitimacy with the state. This will help ensure that once you pick an instant cash advance lender that you will not have any unwanted surprises.
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2. Shop around to find instant payday loans online.
Consider your options and don’t rush your choice. Compare the reviews of multiple providers of instant payday loans online and see which ones have the best reviews. Even though you may feel the need to get a loan quickly, you want to ensure that you don’t make a bad decision due to impatience. Take the extra few minutes to see which one is best suited to fit your needs.
3. Meet the minimum age requirements for your state.
Prior to applying for a payday loan, check with your state law to see what the age requirements are. Some states will be okay with applicants ages 18 and older while others might require you to be at least 21 or older. The provider of instant payday loans online offering services in your area must abide by state laws. If you do find one that allows you to bypass this, you can clearly identify it as a shady loan vendor and should steer clear from it.
4. Have your paystub ready for verification to get instant payday loans online.
Make sure that you have your latest paystub and a phone number that the instant cash loans company can directly call to verify your employment. Having a paystub you made yourself from a computer will not work.
Self-employed workers might have a difficult time with this process, so it’s best to contact the loan provider prior to filling out the application to find out what is considered an acceptable form for a paystub.
It is also important that you provide a number that the instant loans company can contact to directly talk to someone that can verify your employment. If this is not done correctly, you could delay receiving your loan or have your loan declined. You may also not be able to get another loan from the company due to inaccurate information.
5. You need to have a checking account.
In order to pay back the online lenders of instant cash, you will be required to have a checking account. If you’re unable to obtain a checking account, due to bad credit or owing another bank, and don’t have the money yet to pay, you will simply need to look up banks that will overlook that.
There are many banks you can find online that will still allow you to open a checking account regardless of your past history but might have a monthly fee to retain the account.
Check with the instant loans online provider you pick to see if it can use another source of payment to pay off your loan. Some will only allow checking accounts, and you must have it set up for automatic payments. If you are unable to meet these deadlines, it is in your best interest not to obtain the loan as the fees and high interest rate could be too much to overcome.
6. You must be a U.S. citizen or permanent resident.
If you are on a work visa and in need of quick cash, instant loans may not be suitable for you. That’s because instant cash advance companies will require you to be a U.S. citizen or a permanent resident in order to fill out the application.
This is for the company’s protection as you could easily take the money and leave the country. Also, check the guidelines of the company you plan to use to view its requirements for residency in your states because some only allow U.S. citizens as applicants.
You must also have a Social Security number to get an instant cash advance. This is because it’s required to verify your identity and for a quick check of your history for any major red flags. For example, if you have taken out many payday loans and never paid any of them back, a lender would want to see that before making a decision to approve you.
So, if you’re still wondering if instant payday loans online are legit or not, you can keep your worries at bay. There are several instant cash advance loans that are legal.
However, many of these instant cash advances have high interest rates due to the risk involved in distributing instant bad credit loans or instant payday loans online.
If you’re in need of cash right away and lack good credit or you just can’t wait for loan reviews, pursuing instant loans online can be an option for you to explore. However, this should be a last-resort option.
Prior to signing the deal to get a loan, triple-check the terms and agreement, and make sure you are clear on all the fees and interest rates you will be charged during the course of the loan.
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