Payday loans can offer a fast and effective way to borrow money quickly for an emergency. Whether it’s $300 or $500, the idea is that you can get a cash advance on your upcoming paycheck and use this money to pay for any pressing bills, then repay the loan in full on your next payday or spread repayment over multiple installments.

Payday loans are legalized in 37 US states and currently there are over 20,000 stores where you can physically apply and receive funds on the same day, mostly in states such as Nevada, Texas and California

Applying for payday loans online is often more convenient, with an application taking less than 5 minutes followed by an instant decision and funds that are transferred within a few hours, or sometimes minutes.

This article provides information on payday loans, whilst highlighting 4 companies that offer the best payday loans for anyone looking to make an online application and get a decision today.

Top 4 Payday Loans Online

1. DollarHand

2. Pheabs

3. DimeAlley

4. FingerFinance

Why Have We Selected These 4 as The Best Payday Loans Companies?

We have chosen the top 4 payday lenders on the following basis:

Clear eligibility requirements – Our proposed lenders have a very clear criteria including being over 18 years old and having a social security number.

Transparency in fees – The lenders clearly state the cost of the loan. This is a representative example and the rate you are charged may be higher or lower depending on factors such as your credit score, income and other debts that you may have.

No fees for applying – The companies don’t charge any fees for applying and completing an application will not have any impact on your credit score.

Same day loans – Subject to further checks, if your loan application is approved, you can receive funds to your bank account on the same day of applying or within 24 hours.

Data protection – Your data is protected when you apply via a secure server and your information will not be sent to any other lenders or third parties without your permission.

Follows guidelines – The payday loans industry in the US is heavily regulated and the companies listed uphold the highest standards in adhering to these regulations.

What is a Payday Loan?

A payday loan is a type of short term finance which involves borrowing a few hundred dollars, often used to tide someone over until the end of the month when they receive their paycheck from work. These products are offered by private companies, lenders, startups and apps, and regularly help those looking for bad credit loans.

The average payday loan is around $300, which is transferred from a lender to the customer’s bank account in one lump sum. Payday loans typically last around 14 to 30 days with the entire loan and interest often repaid in full on the borrower’s next pay date.

What is the Eligibility Criteria for a Payday Loan Online?

Customers must:

• Be over 18 years old

• Have a social security number

• Be employed with a minimum income of $500 to $1,000 per month 

• Own a bank account, email address and cell phone

• Be able to afford repayments

How Much Does a Payday Loan Cost?

Based on an example of borrowing $500, this will cost you $46.23 in interest for 2 weeks, or $92.27 in interest over 4 weeks, or $273.95 in interest on top for 12 weeks.

This is based on a rate of 500% representative APR (Source: and the longer you keep your loan open for, the more interest that accrues.

The rate of interest and APR that you are charged depends on multiple factors including your age, credit score, income, residential status and other outstanding debts. Whilst the 300% to 500% APR rate is offered to around 51% of payday loan customers, this can vary depending on your circumstances.

How Do Repayments Work?

A payday loan is usually repaid in full on the customer’s next pay date from work, which is usually the last working day or Friday of the month.

Repayments are collected from the lender via ACH authorisation which automatically collects the payment from the customer’s bank account (and not directly from the employer).

Some payday loans are repaid in monthly installments, with customers given the option to repay over 3,6,9 or 12 months, or longer depending on the lender and the loan amount.

You always have the option to repay your loan early and this does not usually incur a fee. The amount is calculated on a daily interest rate, so if you have the loan open for 14 days, you will pay 14 days worth of interest.

What Are Payday Loans Used For?

• Emergencies

• Car repairs

• Credit card bills

• Medical bills

• Household repairs

• Rent

• Funeral expenses

• Child expenses

Can I Get a Payday Loan for Bad Credit?

Yes, it is possible to apply for a payday loan with bad credit scores, with the majority of lenders open to all kinds of histories. Typically if a customer had a perfect credit score, they might consider a personal loan or a credit card, so payday lenders realize that their customers are more likely to have fair or poor credit histories.

To be eligible requires a stable income and being committed to repaying your loan on time. Whilst you may have missed payments in the past, you could be improving your financial situation and starting to pay things on time – and the lender will acknowledge this and help you get the funds you need.

Are Payday Loans Guaranteed for Approval?

Guaranteed payday loans are unlikely as there is usually a series of credit checks and affordability checks to ensure that a customer is appropriate and can afford to repay their loan without falling into financial difficulty.

However, suppose your loan is not approved. In that case, you may be recommended alternative products to suit your requirements, whether it is something like a title loan secured against your car, a home loan or working with a credit union.

Is it Possible To Get Payday Loans With No Credit Checks?

Suppose you are looking for payday loans without credit checks. In that case, this is also unlikely since running credit checks is one of the first things that lenders do to determine the customer’s eligibility.

A way to get a loan with no credit checks is to use an alternative product where credit scoring is not considered. For instance, title loans, pawn shops or secured loans against your home which take the value of your asset or collateral over traditional credit checks.

But even for these products it is still common for the lender to check your credit score and if there is a long history of missed repayments or bankruptcy, this could make it difficult to get a loan and you may need to contact a professional to help get your finances on track.

What Happens if I Cannot Repay My Payday Loan?

Failing to repay your loan on time can result in late fees, added interest on top and it can negatively impact your credit score.

Extra fees will be added if you do not speak to the lender and explain your situation. You should therefore contact the loans company as soon as you have any issues, since they may be able to freeze interest, delay repayment or set up an arrangement to spread repayment over a longer period.

Some payday lenders in the US will offer extensions or rollovers to people who are struggling to repay and this can be helpful, but it can also cause the interest to add up and for many, this becomes a loan which mounts up and they cannot pay it off.

It is very rare to be taken to court over an unpaid payday loan unless you have racked up a huge debt that has been overdue for some time. Equally, you will not go to prison over an unpaid loan.

Is a Payday Loan Right For Me?

If you have a one-off emergency and your payday is a little too far away, getting a payday loan can be a fast way to borrow money – often much quicker than a traditional bank or credit union.

When using a payday loan, you want to have a clear repayment strategy in mind and know that you can afford to repay it and are not simply using the loan to pay off other debts – since this could cause a debt spiral.

Whilst effective, this type of finance is more expensive than options such as credit cards or borrowing from family and friends. 

But if you have considered your repayment and have a regular income, you can use a payday loan to pay off a bill, make an important purchase, and find yourself more financially in control once it is all repaid and sorted!

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