A payday loan is a consumer financial product sometimes called a cash advance loan, a payday advance, a payroll loan, or a small dollar loan. Though it has many different names, it is a short-term unsecured loan, usually for $500 or less, that is due for repayment on your next payday. Borrowers give lenders access to their checking account or write a check for the loan amount plus interest. Payday advance loans are usually paid back in one payment, but some are structured for installment repayment over a longer period of time. You can receive the money from lenders as cash, check, a prepaid debit card, or viaelectronic deposit into your checking account.
Payday advance loans are an excellent resource when you need cash for an unexpected emergency—something like a car repair or a medical bill. The loan allows you to have emergency funds for one-time expenses. This means youif don’t have a credit card, you still have a quick and easy solution to temporary money problems. These loans are often easy to receive for people with poor credit scores.Some online lenders offer fast processing for many loan types and repayment options. If you apply and are approved for a payday advance loan, some companies may also offer you a line of credit.
The most responsible lenders will make sure that you understand the seriousness of using their credit products and ask that you use their products responsibly. They will emphasize that these services are only a temporary solution and encourage you only to borrow only as much as you can repay with your next paycheck. Make sure to read all terms carefully before agreeing toany online loan. Find a company that you can trust before submitting your personal and bank information. When using an online lender, use a website like https://www.moneykey.com that offers top-notch protection and security for your personal information.
Some companies may even accept partial payments as a flexible option for repayment. These organizations may also offer installment loans that allow borrowers up to six months to repay, and may offer a line of credit dependent on the borrower’s net monthly income.
State laws influence borrowing limits and fees. Some states prohibit payday lending, but many states have laws that regulate the lending industry called “usury laws.” These laws dictate permissible lending terms and rates and can also regulate the amount a lender can lend and how much interest the consumer can be charged. Some states have outright bans against payday lenders. The NCSL has a summary of state-by-state payday loan restrictions to give you some insight into your area.