Quick Pay Day Loan: What You Need to Know

Are you in a tight spot and need cash fast? A quick pay day loan may hook you up with some dough within a business day. But before you jump on board, there are a couple of things you should know.

What this article covers:

What Is a Quick Payday Loan? 

A quick payday loan is provided by an online lender that comes in short-term instalments for people with less-than-perfect credit.

Depending on your payday loan type, you can get small amounts – $500 to $3,000. Depending on the type of lender, you might be able to negotiate to pay in more instalments, but usually, you’ll have to pay on your next payday.

quick pay day loan

How Does the Quick Payday Loans Process Work?

Most lenders offer a quick application process and the possibility of funding within one business day. You’ll have to investigate a bit, but you might be able to find direct lenders for payday loans that don’t have any early repayment penalties or ask for all of these credit and background checks. 

However, the interest rates can often be triple-digit, and the loan amounts are always limited.

To get a payday loan, you must be at least 18 years old, have a livelihood, email address, an active checking account, and live in a state where the company does business.

How “Quick” Is a Payday Loan?

Once you submit your online application, you’ll know within seconds whether you’re conditionally approved, and then you’ll need to verify your information to see if you’re officially approved. If you are, the loan funds may be available in just one business day as a 24hr payday loan.

But the catch is the interest rate is super high, with a maximum rate of more than 400%. That means if you borrow $1,000 and get a 378% APR and a 15-month loan term, your monthly payment will be $320.27, and you’ll end up paying more than $4,800 in total throughout the loan – more than four times the original loan amount.

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Sometimes, you can only apply for a loan of up to $1,000. But if you’re a returning customer, you may be approved for loans of up to $3,000. Most lenders offer loan terms of 10 to 26 months, depending on the loan amount. They don’t have any early repayment penalties but charge fees for missed, returned, or late payments. 

Is a Quick Cash Payday Loan worth it? 

Quick cash payday loans are pricey, so we recommend checking them out only if you’ve exhausted all other options to pay for an emergency.

Make sure to shop around and compare offers from other lenders to ensure you get the best loan for your financial situation.

How to Find the Best Payday Loan Lender?

Here are a couple of useful pieces of advice to get you set up with the best quick payday loan lender:

1.   Research different payday loan providers

 Compare interest rates, fees, and terms and conditions of various payday loan providers.

2.   Check if you meet the eligibility criteria

Most quick payday loan providers have certain eligibility criteria, such as having a regular source of income, being at least 18 years old, and having a valid government-issued ID.

fast payday loan

3.   Gather the required documents

Payday loan providers will usually require proof of income and a bank account.

4.   Apply online

Many payday loan providers have an online application process that allows you to submit your application and get a decision quickly.

5.   Study the loan agreement

Before your loan is approved, study the loan agreement carefully. If your loan is approved, you will be required to sign a loan agreement outlining the terms and conditions of the loan; if anything seems confusing, ask plenty of questions and be upfront. If you are suspicious of your lender, finding another one is best.

6.   Don’t take loans that you can repay

Even if the lender is very persistent, don’t get one if you can’t repay your quick loan. Doing this may lead you down the rabbit hole of endless debt cycles.

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Wrapping Up

A quick pay day loan may seem like a fast fix for those needing fast cash, but it’s important to remember that with great convenience comes great responsibility.

We hope we’ve helped you understand the ins and outs of this type of loan and the importance of being informed of the terms and conditions. If you still feel unsure about getting one, explore other options, such as borrowing from friends and family or seeking assistance from a credit union or non-profit organisation, before turning to a payday loan.

Remember, these express payday loans can come with high-interest rates and fees and potentially lead to a cycle of debt if not used responsibly. But if you decide to go for it, make sure you can afford the loan before agreeing to the terms and signing on the dotted line.

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