Payday loans are small but short term loans that borrowers take from lenders. These kinds of loans are also referred to as cash advances but have a higher interest rate than taking out a cash advance from a credit card. Generally, payday loan APR is between 400% to 500%. This means lenders will charge you about $20 for every $100 borrowed.
Because of this, the government strongly advises not to take out payday loans, so do we. You can still get a similar amount from different options with a significantly less interest rate. Since payday loans are approved based on your credit, you will still have options available to you. For example, if your balance is not enough for what you need on your credit card, you can always request a higher credit line from your credit card company.
With that being said, you will have options to get funds without the payday loans. If that’s still what you’re looking for despite the high-interest rates, here is how you can get a payday loan online.
Payday Loan Direct Lenders
Payday loans aren’t granted by major credit companies. There are a couple of banks that give small and short term loans that are similar to payday loans. But to get the loan, you must be an existing customer. That is the case with U.S. Bank. You can get cash advances and if you don’t have enough on your balance, a credit line will be opened to you.
However, keep in mind that payday loans aren’t allowed in every state. In the following states, payday loans aren’t prohibited.
- New Jersey
- New York
- North Carolina
- West Virginia
If you’re a resident of the states above, you are very unlikely to get a payday loan. Although the residents of the rest of the states can borrow a payday loan, limits apply. These limits mostly include the loan amount. If there is nothing in your way, you can get a payday loan online from companies like Payday Me. But again, we do not advise because of the high-interest rates.
Instead, we recommend personal loans or credit card cash advances. As mentioned above, because payday loan approvals are based on your credit, if you can get a payday loan, you should be able to look for alternatives. Also, you will have the option to get a paycheck advance. Not all companies offer these types of short term small loans but it is best to check in whether your bank does.
All options are out of luck? You can always ask for friends and family instead of paying back up to $130 for every $100 you borrow for two weeks. Read our other articles from our front page to master your financial skills.