If the term for which you take the loan is not longer than one year, i.e., 12 months, the loan will be considered short-term. On the other hand, the loan is long-term if the term is longer than 12 months. The most common short-term loans are cash loans, and the most famous long-term loans are housing loans. This is also logical since the repayment of apartments involves large amounts, which cannot be repaid quickly. Long-term loans, for example, include adaptation loans and car loans. However, cash loans can also be long-term.
But today, we will learn one new term:
What is a payday advance?
Payday advance represents a short-term, high-cost loan that can help you cover immediate cash needs until you get your next paycheck. Usually, it is less than a $500 loan.
Payday advice is described as the sum of money spent on a short-term basis and is significantly unsecured. The price involves writing a postdated check by the borrower to receive the lender’s payday salary. The borrower gets part of the payday sum on an urgent basis. The borrower will write you a portion of your salary from the next month and acquire it by applying high Interest on it. There are also known as cash advances or loans provided under high Interest and easily accessible to consumers. They are determined on the income level, delivered to the borrowers as pay stubs upon applying. Regardless, there have been specific regulations and statutes regarding the high-interest fee associated with the payment loans.
This short-term loan helps set out immediate needs until the next paycheque is received. Payments are due within two weeks or until the subsequent paycheque. Cash is charged with triple-digit annual percentage rates. Securing a payday loan is not an easy way out as the accumulation of loans could be challenging to repay, increasing the overall cost before receiving.
How to get a payday loan without a check?
To get a payday loan without a check or checking account, you can get it if you have proof of employment or a steady source of income and a savings account. Usually, when you need urgent medical treatment, or if you buy a car or you urgently need some cash, you can get a payday loan from $100 up to $5000.
How to get a payday loan without a bank account?
To get a payday loan without a bank account, you need to have a prepaid debit card and a lender who will provide a payday loan. Today, various websites offer payday loans and apps that you can download and quickly transfer money to your debit card.
The two main characteristics of the day advance loan are that they are operated on high Interest and are secured. The latter is because these loans do not require collateral and are guaranteed. They are also categorized as predatory loans because of high added interest fees and overlooking the borrower’s ability to repay. Such loans are hardly encouraged because they entrap the consumers in this vicious cycle of debts and loans. It initiates a never-ending process of loan repayment and cutting off the next paycheque; therefore, alternatives and looking for other options are preferred.
The immediate and prompt cash extracted from the pay is put on hold for future deposit and ducted from the bank account when the next paycheque or salary comes in. This involves borrowers writing a percent check for the desired amount and the finance charge. These are the stipulations and prerequisites of receiving cash. However, in some situations, borrowers would also be required to sign electronically to receive and repay these loans. The lenders expect the loans to be paid back and the finance charge in a lump sum.
How Do I Borrow Money From Cash App?
To borrow money from the Cash app using cash.app website (app), you need to do the following steps:
- Install cash app on your mobile phone
- Open Cash App application
- Find Cash App balance located at the lower-left corner of your screen and tap.
- Choose option “Banking.”
- Find the option “Borrow.” (if you have that ability)
- Tap on the option “Borrow.”
- Tap option “Unlock.”
- Cash App will provide you with information on how much money you can borrow.
How to obtain a Payday loan?
Payday loans or advance checks are provided by the emergence of providers, usually on physical stores, grocery, or convenience stores. Borrower’s credit application is analyzed and approved on-site, whereas some of the advance loan services and amenities are provided electronically or through the online payment system.
To kickstart a loan application, providing pay stubs approved by the employer is a precondition. This will indicate the current status of your monthly and annual income. This is important for lenders because the interest rate and other financial surcharges are depended on income. Therefore, some of the lenders also highlight the wages as collateral. However, borrowers do not necessarily have to indulge in a complete check of credit history or the ability to recompensate the paycheque.
Are there any payday loans that accept MetaBank?
No, there are no payday loans that accept MetaBank. Metabanks currently does not offer any payday loans. However, you can get a traditional loan from Metabank divisions such as afsibex.com and crestmark.com.
Applicable Interest on payday loan
The average level of Interest applied on payday loans goes as high as 780 percentage in the annual percentage rate. This accounts for an average interest range of about 400%. To contain and regulate, usury laws are applied in most states that monitor and control the interest rates applicable to payday loans to about 5% to 30%. However, payday lenders enjoy the complete luxury of deducting high Interest.
Payday lawns are considered quite popular because they quickly offer promising solutions without the hassle. This trouble-free system appears free of trouble for the time being, but this results in a never-ending cycle and makes situations uncertain by adding lots of financial burden at the end of the day. However, to fulfill your financial needs, modern technology has its solution as well. Specific finance apps guide, help and assist in providing monitory assistance via paychecks a few days before the salary day. This situation is ideal if you are out of cash and need emergency funds without the added interest rate and financial surcharge.
20 Payday loan apps list
- Albert
- Axos Bank
- Branch
- Brigit
- Chime
- Klover
- DailyPay
- Dave
- Earning
- Empower
- FlexWage
- Go2Bank
- LoanSolo
- MoneyLion
- PayActiv
- PockBox
- Rainy Day Lending
- Sofi Money
- Varo
- Wealthfront Cash Account
The services offered by payday advance apps are contrary to a loan. Payday advance check provides a chunk of salary a few days earlier for the services or responsibilities you have accomplished. As it suggests, extra payment is provided to the borrowers in times of need which is not a loan, but the services and jobs you have performed are recompensated and supplied to you earlier in the form of cash. For example, if a few days remain to acquire the check-in your hands, and you are in dire need of some dollars, you can take help from the payday cash concept. This amount is then deducted and withdrawn from your next salary.
This concept is slightly similar to a payday loan, but the only difference is the absence of Interest. For example, if you need a hundred dollars in cash, you would be asked to deduct a hundred dollars from the next paycheque, but this situation would not be applied to payday loans. Instead, you would have to pay more than a hundred dollars to compensate interest rates used by the lenders. This may also include other financial charges, tips, and monthly fees.
Getting used to advance paycheques may sound appealing, but it also has its limitations. With the amount being deducted from your next salary of the check, you would be left with a small amount of money, therefore, putting you in a vicious cycle of acquiring advance amount again and again. This increases the dependency of borrowers on advanced apps, making it a frequent habit. Therefore, one should always make sure that this app is utilized in dire need to help achieve a stable period.
Top Payday advance apps
Certain payday advice apps provide the necessity advance check earlier than anticipated. These apps are also versatile and multifunctional as they operate on online banking services, have the option of cash back shopping, and invest in online forums and electronic tools to assist employers in keeping a check on their financials. The following are the most used and reliable payday advance apps.
Does Chime make cash advances?
The Chime banking app offers payday loans (cash advance) but not everybody. Payday advance apps that work with Chime are Cleo, MoneyLion, Earnin, Branch, Albert, Klover, Empower and Chime SpotME.
Does Brigit work with Chime?
No, Brigit doesn’t work with Cime currently. Additionally, there are three banks that Brigit doesn’t work, and they are Chime, NetSpend, and Varo because of issues with maintaining connectivity.
Does Moneylion work with Chime?
Yes, Moneylion works with Chime bank. To receive MoneyLion advance cash, go to “Transfers,” click “Add Account,” select Chime, and add account. After that procedure, you will receive some money in your Chime account.
Brigit
This app is highly accommodating and flexible for payday advance requirements. It can offer up to to $250 of your salary directly deposited to your bank account the following day without the requisites of having a credit check. This app will automatically extract money from your next paycheque. However, users of this app also had the option to return the loan earlier. You can also ask for a date extension on the first loan without any penalty. As part of its convenience, users can further extend the due date deadline three times, allowing you to delay the loan repayment and making this experience flexible. This app will also inform the users about the diminishing account balance prompting you to take exams paycheque. Similarly, you can customize the settings and acquire advance paycheque if your account balance gradually lowers to prevent overdraft fees. However, this facility is for premium users only for $10 per month.
Brigit App requirements
It would help if you had a stable monthly income to use this app. The payment must be acquired through a single steady source, and employers and users of this app would be required to provide financial proof and three preceding paychecks from the employer. Furthermore, the users should have a checking account more than 60 days old. There should be noticeable activity within the account validating that the account is typically used to make cash deposits, withdraw cash, and other transactions. Lastly, you would be required to fulfill the individual eligibility criteria set by the app. They have a unique scoring system that is similar to credit scores. This is drawn on the account’s earnings, withdrawals, and spending rate. You need to have at least 70 points to be eligible for advance paychecks.
Go2bank
This is another advance payment app with multiple perks and facilities. This is a subsidiary of GreenDot and has a variety of features. This app works on an interest rate of 1% APY, more than ten times the standard rate. There are no additional or hidden monthly fees applied as long as users utilize this app on direct deposit. If the app is being used without a direct deposit, another $5 per month is required. You will get constant updates if any suspicious activity is found in your account. Users can make the payment to the online facility with the option of avoiding overdraft fees to up to $200 with direct deposit. This app also has direct access to different ATMs. However, for this, you would be required to pay three extra dollars for withdrawals, especially if they’re out of network. Users can also secure monthly credit scores from Equifax. Finally, there is an option to perform cash deposits at different retail stores by convenience platforms with a small surcharge.
Empower
With this app, you can enjoy an interest-free rate of still up to $250. The flexibility of the spectrum allows you to enjoy no penalties, late fees, and no credit checks. The money can be directly sent to your bank account with an additional $3 fee. Additionally, you can also book an Empower card with multiple benefits customized to suit individuals’ needs. You can receive up to 10% cashback on different stores and items with this card. This involves a list of restaurants, convenience stores, and gas stations. In addition, you can use ATMs across the country without an additional fee.
Furthermore, you can get the advanced paycheck by direct deposit in the amount of the Empower card. This is a different concept than the payroll advance, but its function is similar to other advanced apps. This platform of receipt highest quality of flexibility with no overdraft fees, inadequate funds, and no fee requisites of account minimums.
After leaving Wells Fargo Bank in 2014, Daniel began a career as a finance consultant, advising companies and individuals on economic policy, labor relations, and financial management.
At Promtfinance.com, Daniel writes about personal finance topics, value estimation, budgeting strategies, retirement planning, and portfolio diversification.
Read more on Daniel Smith's biography page.
Contact Daniel: daniel@promtfinance.com