Payday loans are a big part of the American financial system, but they are not a one-size-fits-all product. In your search for a payday loan, you often want a loan that can close on the same day. While this is not always feasible, you should know your options. A variety of loan and cash management products are available to help you through a difficult financial situation. As you review these options, remember that each suits a different circumstance.
What is a Payday Loan?
A payday loan is generally a 1-time loan that pays you prior to the date when you receive a paycheck. These loans often come with high interest rates, and they are generally paid out in 1-2 days. However, each bank or lender that offers payday loans is different. You may find a lender that closes quickly with high rates and unfavorable terms. On the other hand, you might find a lender that closes slowly with better rates and terms.
Also, consumers should be aware that loans of this type often include quite a lot of paperwork before closing. Many banks, while working in the 21st century, might make you feel as though you are closing on a mortgage even though you only plan to borrow no more than a few thousand dollars.
At the same time, some consumers feel that these loans are predatory or associate negative feelings with these products. Yes, some lenders are predators making money off well-meaning, innocent people. At the same time, there are certain banks and lenders that hope to change the payday lending market.
Are There Payday Loan Alternatives?
If you want to get a payday loan online, you should also look at alternatives that may be more beneficial in your situation. Payday products may not help you because the rates are too high or you must wait too long to close.
Consider a few alternatives that will help you get the cash you need without immediately turning to an expensive loan. These alternatives allow you to take funding right away, and they are often much cheaper than a traditional payday loan package.
Try a Cash Advance
Cash advances are most often available from credit cards at a higher interest rate than you pay on purchases. However, you might also get a cash advance from your bank, financial platform or a digital lender. While these loans tend to be small, a few hundred dollars may be enough to help you get by.
Check the rates and terms of a cash advance before you accept funding. Traditionally, the advance will be funded immediately.
Reach Out to Your Employer
It’s possible that you could take a cash advance on work you have not yet completed. While this is rare in today’s work environment, contractors or freelancers may find that this sort of arrangement is possible.
Try a Microloan
Microlenders are often organized so that you can borrow small amounts of money from an individual or several individuals. Traditionally, microloans are given in Third World countries where traditional financing is not available.
Some loans have low rates while others are quite high due to the increased risk of default. While every microlender is different, they are worthy of your time and a little research.
Microloans may be especially helpful for consumers who manage their own businesses or are self-employed. A microloan will help you get the cash you need, but you might also look at the loan as a way to bolster your operation.
Early Payday Apps
Early payday apps and accounts allow you to get paid a few days before your paycheck should arrive. With these accounts, you register for an early payday, the entity pays you a few days before your paycheck arrives and the transaction is reconciled when your paycheck direct deposits.
A service such as this is most beneficial for people who get a regular paycheck every week, 2 weeks or 1 month.
Can You Rebuild Your Credit with a Loan?
If you take out a payday loan, faithful payments on that obligation will help increase your credit score. In some cases, you might find a bank or financial platform that offers credit rebuilding loans you can use to supplement your paycheck. The speed of closing depends on the lender and its processes.
While these loans do not specifically address your paycheck, their rates often beat payday loan interest rates.
- Prizes & Features
About MoneyLion
MoneyLion is a financial platform committed to helping “rewire” the American financial system. In doing so, MoneyLion offers a wide range of services, including:
- Mobile banking
- Cashback rewards
- Zero hidden fees
- Financial tracking
- Buy now, pay later
- RoarMoneySM payday advances
- Investment accounts
- Credit Builder Plus loans
- InstacashSM advances
- MoneyLion crypto trading
With these options, MoneyLion helps customers get payday advances if needed. Get paid early, build your credit with a loan, take a cash advance or invest. In all these things, MoneyLion helps “the 99% feel 100%” about their finances.
Finding Payday Loans that Could Close Today
When you hunt for a payday loan that can close today, keep your options open. There are several ways to get the cash you need, and you can match your needs to available products. For more financial information, you can return to Benzinga at any time. With every new article, you can learn more about managing your money and obtaining financial freedom.
Frequently Asked Questions
How long does it take for a payday loan?
The amount of time it takes to close a payday loan depends on the lender. Ask the bank or lender you’ve chosen how long their closing process generally lasts. At times, you can close the same day, but other times, you cannot.
Can you take out a loan for the same day?
There are situations where a bank or lender might close a loan on the same day, but that is a rare occurrence. Search for banks or lenders that allow microloans to close the same day, or look into cash advances that can be funded the same day.