Getting a payday loan means getting cash quickly, solving a short-term financial problem, paying back the loan in a couple of weeks and getting on with life. Borrowers who understand payday loans know that if you have an expense that hits at the wrong time, payday loans are the best way to stay out of hot water, keep a credit report intact and avoid future financial hardship. No one needs to take on long-term debt because of a short-term lack of liquid cash.
Personal Money Network protects you
We help borrowers find trustworthy, safe, fairly priced payday loans because our business depends on it. We thoroughly research online lenders to make sure they are legit and in compliance with federal and state financial regulations. Our system acts as a shield to protect customers from taking out bad loans, a researcher to save customers time and a loan adviser to make sure customers can afford to take on a short-term debt. Our company exists and survives because we provide safe, fair lending transactions that result in the best experience for customers in this industry.
What to expect when taking out a payday loan
Quick short-term financial solutions
The first step in taking out a payday loan is much like applying for a traditional loan from a bank, except with payday loans bad credit is often approved. The borrower provides basic personal information, requests a loan amount and submits it to a lender. Unlike a traditional bank loan, a payday loan gets cash to the borrower within a day, sometimes within just a couple of hours. Typically, with payday loans no faxing of identification documents is required either. Applications take 3-7 minutes to complete and processing takes around 1-3 minutes.
The typical payday loan
Most payday lenders offer loans in amounts of $100 to $1,500. We recommend that borrowers consider the amount of their next paycheck and the other expenses that will have to come out of it and only borrow an amount they will be able to repay with that paycheck. The average loan is $300-$500. Borrowers must also factor in the lenders fee, which will need to be paid at the time the loan is due. Fees differ based on lender, regional regulations and the loan amount, but a minimum of 15 percent of the total loan amount is usually what lenders require. A fair price for a payday loan, depending on the situation, can be $15 to $30 per $100 borrowed. If a lender asks for more than that, don’t take the deal. Keep in mind these are not APR fees but per loan fees.
The average payday loan customer
Because of various groups and institutions manipulating the media, most people have a very inaccurate view of what type of people take out payday loans. The average customer who gets approved for a loan is 36 years old and makes above average wages, at $47,260 per year. The average online payday loan borrower has been at the same job for at least four years, and 45 percent of our customers are homeowners. Only 3 percent of customers approved for payday loans through our loan matching process were on disability or Social Security. In short, average Americans with high-paying jobs get payday loans every day.
How payday loan applications are processed
Our system submits applications to multiple lenders, one at a time, until we find a lender that has underwriting rules that match the applicants personal circumstances. Online payday loans get directly deposited into the borrowers checking or savings account after the lender and borrower reach an agreement regarding the loan amount, the fee for the loan and the date when the loan will be repaid. That information is provided on what is called an ‘e-signature’ page that is shown to the borrower they are matched with a direct lender.
More facts on American’s use of payday loans
Payday loans have been around, in some form or another, for as long as modern currency. The idea of lending cash on a short term basis for a fee that will be paid later is older than credit cards and big banks. Its a simple concept, yet modern payday loans get bad press because giant financial institutions wield their power and influence to try to eliminate their cheaper direct lending competition. They want you to believe that using credit cards and borrowing from banks is the only way to use credit, but that is not true. They like getting your credit report even though too many hard inquiries can cause all kinds of credit problems.
Geographical information on payday loans
Not surprisingly, the largest state in the contiguous United States takes out the most payday loans. Texas accounted for 20 percent of the payday loans approved through our system, and California is in second place. Interestingly, the tiny and relatively wealthy state of Maryland is third on our list for number of online payday loans approved. Its true that online payday lenders tend to be more selective than brick and mortar payday loan stores. Online payday lenders approve loans only for clients who they know can afford them. News organizations and competing financial organizations say that payday lenders exploit their customers, but nothing could be further from the truth. Payday lenders benefit from helping their customers make good financial decisions.
Avoid payday loan scams
In the financial industry, there are con artists lurking around every corner, looking for opportunities to scam people. Unfortunately, the payday lending industry is not immune from being targeted by scammers. Our main priority is making sure lenders are legit to protect customers from getting scammed. We also publicize any payday loan scams we’re aware of on our Money Blog at personalmoneynetwork.com/moneyblog/. We also provide in-depth news on the financial industry as a whole and other current events.
Payday loan wrap-up
Payday loans get money in borrowers’ bank accounts faster than any other type of loan. We do all the necessary research to make sure customers are as safe as possible. We make sure the lenders we work with are legit, trusted companies that will keep your personal information safe, through a selective screening process. The online payday lenders we work with make sure customers don’t take on loans they can’t afford because otherwise people default and they don’t get their money back. To learn the history of payday loans, read up on more statistics and find out the truth behind all the “predatory lending” rumors, check out the research in our Payday Lending Statistics Report..
The next step you should take
The all-online process of taking out a payday loan starts by clicking on Apply below. If taking out a loan is absolutely essential for you, and you’re ready to take on the financial responsibility, we are here to find the best lender for you and make sure your payday loan experience is a good one. Please use this short term loan product responsibly.