3 Times Payday Loans Make Sense
Payday loans are a form of borrowing that the vast majority of borrowers should stay away from; yet, there are certain circumstances in which this type of loan may actually be less expensive than other available options. The following are some of the situations in which applying for a payday loan might be the best option available.
- The cost of a payday loan is significantly lower than the cost of a bounced check
Some people, when they are in a tight financial spot, will issue checks even if they are aware that they do not have sufficient funds in their accounts. In light of the fact that many banking institutions are increasing the fees associated with overdrafts, it is possible that opting for a payday loan rather than incurring fees will be more cost-effective. It’s easy for overdraft fees to mount up, especially if you’ve made many checks from the same account. In this situation, getting a payday loan can be the best course of action to take. You can avoid spending a significant amount of additional costs by using a website such as CashNetUSA, which has cheaper transaction fees.
- A Payday Loan might be a better financial option than having to pay a Fine or Penalty.
If you have to pay a ticket or court expenses, but you don’t have the money to do so, it’s possible that getting a payday loan will be the more cost-effective option for you. If court costs and other fines are not paid when due, this can lead to further complications down the road. It is always in your best interest to settle your financial obligations as quickly as possible, particularly if doing so would allow you to keep your driver’s license or prevent you from incurring further fees. If you are going to need payday loans more than once, you should know that certain payday loan services will lower your interest rate if you have a history of paying on time. This can save you some money on your loan and will be preferable to taking on fines or penalties. If you are going to need payday loans more than once, you should know that certain payday loan services will lower your interest rate.
If you stop paying your utility bills and have your service cut off, it may be very expensive to get it turned back on. A cash advance from a payday lender is an option worth considering in this scenario. However, this is the kind of incident that should never take place more than once. If you find that you need to obtain a payday loan on a frequent basis, then you are not making the most of this available choice. If you are having trouble paying your utility bills on a consistent basis, it would be a good idea to seek assistance from a nonprofit organization or investigate alternative options for acquiring the necessary income.
Payday loans are not inexpensive, but there are times when they are less expensive than the other available options. It is imperative that you do everything in your power to avoid getting caught in a payday loan cycle. This is a situation in which the borrower either uses loans on a frequent basis or takes out additional loans in order to pay off previous loans. Payday loans have the potential to simplify one’s life if they are utilized in a responsible manner; yet, if they are not, the resulting financial harm might be significant.
The Finest Services for Payday Loans
There are a few different options available to you if you are looking for a trustworthy company that provides payday loans if you are currently in the market for one. The following companies are our top picks for payday loans. Both provide reduced interest rates and larger loans for customers who make their payments on time, and both are reputable firms that provide payday loans.
Best for Instant Loans: LendUp
Overview: LendUp is a very new company that provides payday loans; it was established in 2012. They are only active in 15 states at the moment, but their expansion efforts are ongoing. Because they provide a rewards programme that enables their customers to take out larger loans at a cheaper interest rate throughout the course of the loan’s term, LendUp is an excellent service for people who anticipate taking out multiple payday loans in the near future. Instant deposit is one of the many beneficial services that LendUp provides that is not provided by other online payday loan sites. With instant deposit, you can receive your loan in 15 minutes or less.
- The cost is $17 for every $100 that is borrowed.
- APR on loan: 36%-406% (depending on credit)
- The maximum amount that you can borrow is $1,000; however, you will need to begin with smaller loans, such as $250, and work your way up by making timely payments.
- The maximum duration of a loan is thirty days.
- The typical cost of a loan is as follows: if you borrow $250 for a period of 30 days, you will be responsible for paying back $293.40, which includes $43.40 in interest.
- You are required to provide evidence of your income, have a checking account, and provide a plan for when you will be paid, in addition to providing standard identifying information such as your social security number and a photo ID. A credit check is not necessary to borrow money through LendUp.
- Features: You can get direct deposit right to your checking account, much like with the vast majority of payday lending services. Deposits can be made the same day or the following day through LendUp, and repayment of loans can be handled by automatic withdrawals. If you are unable to make a payment on the due date, the company will extend the payment period for you at no additional cost. Additionally, there will be no penalty for paying off your loan early if you choose to do so in order to save money on interest.
Customer service is provided by LendUp via email, telephone, and a nice Frequently Asked Questions (FAQ) section; however, there is no live chat option available.
Best for Larger Loans: Rise
In brief, Rise was launched in 2013, making it even more recent than LendUp. In addition to attempting to alter the process by which payday loans are administered, Rise is working to improve the client’s overall level of financial knowledge. You can earn rewards for making on-time payments, enrolling in financial education classes, and signing up for the company’s credit score improvement program. In addition, they provide a rewards program that has the potential to lower your APR over time. Because of their dedication to educating their clients, it is clear that they are really concerned about their clients’ financial well-being.
Cost: $2 – $14 for every $100 that is borrowed
APR on loan: 125%-363.86% (depending on credit)
The maximum amount that can be borrowed is $5,000.
The loan can be taken out for a maximum of 14 days.
Price of a typical loan: With an interest rate of 225% and a loan amount of $2,600, you would pay a total of $6,173.16 for the money borrowed.
Requirements: Very similar to those of LendUp, you will be required to provide evidence of your salary, a checking account, and a schedule of when you will be paid, in addition to the standard identifying information such as your social security number and a photo ID. The main distinction is that in order to get authorized for Rising, a credit check is necessary.
Advantages: Rise provides the same kinds of features as LendUp does, such as a direct deposit into your checking account, automatic withdrawals for paying the loan back, payment extensions, and there is no penalty for early payoff of the loan. They do not accept deposits for the same day but do accept deposits for the following day.
Customer service is provided by Rising in the same ways as other companies, including via telephone and email, as well as through informative frequently asked questions (FAQs).