The Top 10 Best Payday Loans

the best payday loan

Small, short-term loans are close at hand, but are not to take lightly. With many lenders and amounts that can reach up to one thousand dollars and more, a responsible approach will pay off. The top 10 payday loans on this page and all reviews and feature comparison charts within the site pages are key for responsible, reliable and smart financial decisions.

Top10OnlinePaydayLoans.com is a comparison site dedicated to helping you find the best payday loan for your needs. To offer this service, we may receive advertising profits from providers we feature here.

Representative APR Range

www.top10onlinepaydayloans.com is not a short-term lender and does not provide payday loans but refers consumers to lenders who may provide such loans. The site is unable to accurately represent the exact APR (Annual Percentage Rate) that you will be charged if you are approved for a loan. APRs vary from lender to lender, change from time to time, and are determined according to the information supplied by you and your loan details.

APR% is a commonly used way of expressing the fees of payday loans and other common loans (mortgage loans, auto loans, etc,). The figure represents an annual percentage rate, although your payday loan is not annual, nor should it be. Make sure that you review the terms and conditions of the loan that is offered to you so that it doesn't end up becoming an annual loan.

Nor is the APR the entire finance charge a loan will cost you. The finance charge rather is made up of the APR% and additional fees, such as loan fees, late payment fees, non-payment fees, loan renewal actions. The exact APR and complete finance charge will be given by your lender when you are redirected to your loan agreement in the loan request process.

The APR% range, as appears in the chart above, usually represents lender fees. Example:

Borrow $200 for 14 days with a $30 to $60 lender fee. Your estimated APR is 391% to 782%

The calculation: (lender fee / loan amount) x (amount of days in a year / duration of the loan) x 100

Low End of Range: ($30 / $200) * (365 days / 14 days) x 100 = 391.07%

High End of Range: ($60 / $200) * (365 days / 14 days) x 100 = 782.14%

What Are Payday Loans?

A payday loan is a short-term loan that is designed to help you with bills and expenses in between your paydays. In order to get a payday loan, you need to complete a loan application at a payday lender. There are also several eligibility requirements like your age and employment status that must be met in order to be eligible for the loan. These loans are quite different from traditional bank loans because even with poor credit you can still be approved and in many cases you will receive your loan the very next day after you apply. Generally these loans have a very short loan term and usually need to be paid back on or before your next payday.

Who Can Benefit from Payday Loans?

Many different people can benefit from a payday loan. First, if you have some unexpected expenses and simply cannot wait for payday then getting a payday loan is a good option. These loans are also a useful solution if you need money quickly and cannot afford to wait for a bank to approve a loan. In some cases you will receive your loan within hours after applying and at the most you will receive your money in 2 to 3 business days. Payday loans can also be beneficial for those who have poor credit, bad credit, or no credit history. If your credit is poor then it can be difficult if not impossible to get a traditional loan but because payday loans are based more on your ability to pay the loan your credit is not nearly as important in the approval process. Additionally, you can actually improve your credit score by paying the loan back on time.

What is APR?

APR or annual percentage rate is the interest rate that is applied to credit cards and loans. The APR is the total interest that your loan will incur if you held the loan for an entire year. In order to pay the loan in full, you must pay back the interest as well as the initial loan amount. The APR is generally very high for payday loans but because you usually will only have this loan between 7 and 31 days you will not incur a significant amount of interest.

How to Choose a Payday Lender

You should always choose a lender that is honest and upfront in terms of their eligibility requirements and loan details. In addition, you should compare a multitude of lenders based on APR, loan conditions and eligibility requirements in order to find the best choice for you. It is also recommended that you find reviews of the lender you want to use so you can see what other customers said about their services. Finally, you want to use a payday lender that has a professional, polite and helpful customer service team.

Important Notice

Short-term loans are usually borrowed for a limited amount of time, and intended to be paid back within a month, or by your next payday. However, payday lenders have diversified their offerings and some offer loans for higher amounts and longer periods of time. The APR is significantly higher than that associated with bank loans. Lenders often offer a higher APR for smaller loans and short terms, and a lower APR for large amounts and longer terms.

Either way, payday loans – short term, small amount loans or long term loans for large amounts –are an expensive form of credit. Payday loans are not a long term financial solution, a monetary resource, or a credit alternative. Consider the following implications of non-payments.

Financial Implications: Short or long, loans are for a limited time. Borrowers commit to a date by which the loan will be repaid in full (amount of your loan, cost of the loan, repayment amounts and all costs included). If you are unable to repay your loan in a timely manner, you may face late fees, administrative fees, non-payment fees, insufficient fund fees, and legal fees, while interest accumulates. The fees' limits are set by state laws and can reach thousands of dollars. All potential fees must be disclosed by the lender.

Collection Practices: Payday lenders have available to them a number of debt collection practices, which they may use in case you are unable to repay your loan. Collection efforts commence the moment a loan is in default and the borrower did not sign a loan extension. They can be aggressive, regulated and limited by the Fair Debt Collection Practices Act and applicable state laws. Loan and debt collection efforts may include the following: telephone calls to your home or place of employment, notices by mail, and visits to your door. They may access your checking account to withdraw the amount, even at the cost of creating overdraft charges for the borrower. Although they may not harass you or engage in any unfair practices, these measures are terribly uncomfortable and dangerous.

Credit Score Implications: In addition to the financial costs of payday loans and debt collection practices in case of default, failing to repay your loan on a timely basis could affect your credit score. If the lender reports your delinquency, you can expect your credit score to decrease, which makes any form of borrowing more expensive, difficult, or altogether impossible.

Renewal Policy: Borrowers may avoid default or delinquency if they reach an agreement with the lender for an extension. Loan renewals are not always automatic, but rather must be requested, or else the loan might enter default. Furthermore, loan extensions usually come with administrative fees associated to them. Along with the high APR, the loan cost may quickly increase, which makes renewals even less favorable. Payday loans regard timely payments very highly, and so should you.

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Source: top10onlinepaydayloans.com

Category: Payday loans

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