Updated: Nov 9, 2022
Let's face it, money is tight these days. The economy is slowing down and everyone seems to need a little extra cash.
So, let's tackle the question: "what are the best online payday loans?"
In this article, we're going to discuss:
The best online payday loans providers
How to apply for a payday loan
Alternatives to payday loans
How to boost your credit score
Table of Contents
What are PayDay Loans?
Payday loans are a type of short-term loan which are designed to help individuals meet unexpected expenses. Many people use payday loans to pay unexpected bills.
However, payday loans are short-term and are meant to be used only for emergencies. The loan amount is usually a sum of money that is far greater than what can be found in the average bank account.
A lender will fund the credit by giving the borrower an amount of money. The lender will then receive the amount back from the borrower. The lender will often charge interest on the amount provided by the borrower. This interest rate is usually higher than what you would pay on a credit card.
A majority of companies offering payday loans do not have a proper license or authorization. This means that the lender is not regulated by any government agency. It also means that you are unlikely to get any problems or issues with regard to your credit history or credit score.
That's why payday loans are relatively easy to obtain.
Alternatives to PayDay Loans
There are other non-loan options for certain people who are facing financial hardships. These two companies specialize in helping people with bad credit, or who need money as a result of getting sick or being hurt.
At the risk of sounding like a daytime infomercial: If you need money because of an injury or illness, you may be eligible for financial compensation.
Lawsuits against pharmaceutical companies, medical device manufacturers, and other companies who make or sell defective products are ongoing; and you can take action to get the money that you deserve without ever having to pay it back!
If any of the following scenarios apply to you, I strongly recommend that you contact Injury Review Legal to discuss your options for financial compensation:
Talcum powder linked to ovarian cancer
Elmiron linked to eye damage
Zantac usage linked to cancer
Baby formula linked to NEC stomach issues
Child sexual abuse by priests or clergymen
Paraquat linked to Parkinson's disease
Transvaginal mesh complications
Hernia mesh complications
3M Earplugs linked to hearing loss
Genesis Financial is unique is that they specialize in "second-look financing," meaning that they only deal with consumers that have been denied credit cards by larger financial institutions.
Their credit cards are accepted anywhere that accepts Mastercard, and come in three tiers. Each tier comes with its own application and approval odds so don't get discouraged if your first application doesn't go through. Each card is a seperate application.
The best part is that applying for these cards has no impact on your credit score!
Recover old 401(k)s
If you've ever had a job that paid into a 401(k) account for you, that money may still be out there waiting for you to claim it!
You can check to see if you have any 401(k) money from past employers with Beagle. It's free to check and they can help you recover thousands of dollars that rightfully belong to you.
How to PayDay Loans Work?
A payday loan is a small loan that is granted to be paid back at a later date, usually due within 30 days. The loan usually takes the form of a bill. The amount of money borrowed and the interest is usually charged on the day the loan is granted.
Whenever a loan is granted it is always with certain conditions.
The borrower must be over the age of 18
The loan must be paid off in full within a certain time frame, usually 30-90 days.
There are a number of other rules and regulations which affect payday loans. For instance: It is illegal to take out a loan that is more than 44% of your monthly take-home pay.
Payday loans are marketed as a quick and easy way to get money when money is needed. They are expected to typically have a fast application process.
You are usually able to apply online and your loan will be approved within 1-2 days. The loan is usually deposited into your bank account within 24 hours.
The Three Best Online PayDay Loans
There are A LOT of options when it comes to choosing payday loans. We've chosen our top three based on odds of approval and general customer satisfaction.
Personal Loans is quick-and-easy way to get your hands on up to $35,000. However, Personal Loans doesn't actually give you the money themselves.
They match you with a loan provider from a vast network of trusted lenders; thus dramatically increasing your odds of approval.
Many of their clients have the money in their bank account account that very same day that they apply.
Of all the payday loan providers that we surveyed, Personal Loans in most-worthy of our esteemed "First Choice."
If you need a loan, we strongly recommend starting with Personal Loans.
Bad Credit Loans is a perfect option for people who might not have great credit. As the name implies, they specialize in second, third, and even fourth chances.
If Personal Loans doesn't work out for you, give Bad Credit Loans a try. Their can help you secure a payday loan for up to $5,000 and they also have a reputation for delivering the money quickly.
Though it's not our first choice, Cash Advance does deserve a place on this list. Like the first two Payday Loan services. Cash Advance specializes in working with people who don't have great credit, and they're just as capable as the other two companies.
Their reputation for customer service and high approval rates have earned them a rightful place on our top three list.
Drawbacks of PayDay Loans
Payday loans have a number of negative connotations. These are caused by the negative image of the loan.
Payday loan companies are often accused of predatory behavior.
The image of payday loans as a loan that extracts money from people when they are most vulnerable is very strong. Even some politicians have referred to payday loans as a ’Roulette of Poverty’.
The image of payday loans as a loan that extracts money from people when they are most vulnerable is very strong.
The Problem with Payday Loans
The problem with payday loans is that not everyone should be able to use them. There is a growing consensus that payday loans are a bad deal.
A lot of payday loan users end up falling into a cycle of debt. They take out a loan, pay it back and then take out another one. This cycle puts borrowers in a negative financial situation - a veritable spiral of debt.
They take out a loan, pay it back and then take out another one.
If the borrower is unable to pay the loan back in full, then the loan provider will sometimes offer to extend the loan. This extension is almost always at a cost. This can lead to a vicious cycle of borrowing.
The problem is not just that borrowers are running out of cash. The problem is that they are completely unable to stop the cycle of borrowing.
People begin using payday loans as a crutch; and that is a difficult cycle to break
Payday loans are something that a lot of people need. They are a good short-term solution when you need money for an emergency. The problem is that payday loans are being used too much.
Before we look at what you can do to improve your credit, let’s look at what credit is and how it works.
Credit is a monetary tool that allows people to borrow money. Think of it this way, credit is like loans that people can take and use.
The big difference is that with credit, you do not have to pay the full amount back right away. Instead, you pay it back over time.
The way it works is when you go to a bank or other credit provider, you provide them with a document showing proof of your cash flow.
This proof is in the form of things like income documents such as your pay stubs or bank statements.
The lender will then use this document to assess your creditworthiness. If you pass their test then they will issue you with a credit limit. It is at this point that you can start looking at different credit cards, loans, and mortgages.
How to check your credit score
When it comes to checking your credit score, nothing beats FREE. Credit Karma is the only credit monitoring company that will let you check your score without asking your for a credit card.
Yes, they offer other more expensive services for anyone who wants to improve their credit score, but if all you need to do is check to see where you're at, Credit Karma is the place to start.
See the chart below for help in deciphering your credit score:
How to raise your credit score
If you're not happy with your credit rating, there are ways to improve it. The quickest and most-efficient way boost your number is by hiring a reputable credit repair service.
These agencies employ armies of lawyers who specialize in credit repair and who will reach out to creditors and settle your old debts.
They can pull old charge-offs and closed accounts off of your credit report and help clean-up your file. I've used these services myself, and I have to say, they do deliver.
The credit repair service that I recommend is Credit Saint. They have over 15 years of experience restoring people's credit. They also offer personal restoration plans that are customized to meet individual needs.
Credit Saint also provides educational resources to help you stay on top of your credit after you improve your score.
Another cheaper but also slightly less-effective option is Credit Nerd. Their service is much less expensive than Credit Saint because they don't do any of the work for you.
They just monitor your credit and tell you who to call to settle your debts.
However, if you don't mind reaching out to your creditors yourself, Credit Nerd is a great way to save on credit repair.
How long to hard inquiries stay on your credit report?
A hard inquiry is a deliberate review of your credit file by a lender or company that occurs during the loan application process.
Unlike soft inquiries from credit repair services, hard inquiries do negatively affect your credit and will stay on your credit report for two years - but will only negatively impact your credit score for one year, in most cases.
The good news is that hard inquiries don't typically impact your score in a significant way. However, repeated and frequent hard inquiries are a different story.
How often does your credit score update?
Credit bureaus update your credit score once a month. However, there are rare cases where updates may happen slightly more or less frequently.
Do medical bills affect your credit?
Most healthcare companies do not report medical debt to the three major credit bureaus (Equifax, Experian, and TransUnion) which means that most of the debt accrued for medical expenses does not affect the credit score of the patient.
What does your credit score start at?
We all start off at 300. After 6 months, if you've managed your credit responsibly, your score will improve.
Does refinancing hurt your credit?
Yes, although only in the short-term. On a longer timeline, refinancing can be a excellent way to get out of debt for good.
Refinancing lowers your overall debt amount and reduces your monthly payment. Both of these things will have a positive effect on your credit score after a few months.
Does closing a credit card hurt your credit?
Not necessarily. But it is essential that you pay down your other credit cards first, not just the one you're cancelling.
Paying off your other credit card debt will send a signal to potential lenders that everything is under control and that you're closing the credit card on your own terms.
You Need a Budget!
Let's face it, what you really need is a way to get out of debt once and for all! You Need a Budget is a financial literacy platform that will help you stop living paycheck to paycheck and put you on the road to real financial security.
Their award-winning personal finance software will help put you in total control of your finances. With just four simple rules, You Need a Budget can help you overcome your financial challenges and get you out of debt for good!