What are the common types of loans?
The most popular loan products are payday loans, mortgages, student loans, auto loans and personal loans.
What is an installment loan?
An installment loan is a loan that is repaid over time with a set number of scheduled payments.
What is an installment loan example?
Common examples of installment loans include mortgage loans, home equity loans and auto loans.
What are payday loans?
Payday loans are short-term cash loans that are typically due within 1-3 weeks or close to the day you get your next paycheck.
How do payday loans work online?
Getting a payday loan online is similar, but you are entering into the transaction via the Internet instead of in person.
What is the usual method to repay a payday loan?
You’re generally required to pay off a payday loan with a single payment by your next payday.
Do payday loans hurt your credit?
Payday loans generally are not reported to the three major national credit reporting agencies (Equifax, Experian, and TransUnion), so they are unlikely to impact your credit scores.
What are the pros of payday loans?
- They’re easy to access;
- They have fewer requirements than other loans;
- They don’t check your credit;
- It’s an unsecured loan.
What are the cons of payday loans?
- They’re expensive;
- Payday loans are considered predatory;
- It’s easy to get trapped in a debt cycle.
How can I get approved for a payday loan?
To qualify for a loan, most payday lenders only require that borrowers:
- be at least 18 years old;
- provide some proof of income as well as valid identification;
- have an active checking account.
Can you be denied a payday loan?
While not all payday loan lenders check your credit history, some do. If your credit score is low, or your debt-to-income ratio is unfavorable, the lender may deny your loan application.
What happens if you don’t repay your payday loan?
Defaulting on a loan can drain your bank account and trigger collection calls. This can also lead to collections calls, bank overdraft fees, damage to your credit history, a day in court and garnishment of your paycheck.
Can payday loans take you to court?
Yes, a lender can sue you in court if you default on your debt.
How long does it take to get a payday loan?
The loan can be approved in as few as 10 minutes. In most circumstances, you should expect to get your funds as soon as the next day or even the same day.
What is the average payday loan amount?
The average payday loan ranges from $100 to $1,000. In some cases, the amount can reach $5,000.
What is the best online payday loan?
We partner with the best payday lenders online. To get the best loan offer, use our referral service.
In what states are payday loans legal?
Payday loans are legal in Alabama, Alaska, California, Delaware, Florida, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Michigan, Minnesota, Mississippi, Missouri, Nebraska, Nevada, North Dakota, Ohio, Oklahoma, Rhode Island, South Carolina, Tennessee, Texas, Utah, Virginia, Washington, Wisconsin, and Wyoming.
In what states are payday loans illegal?
Payday loans are illegal in Connecticut, Maryland, Massachusetts, Pennsylvania, Vermont, West Virginia, and the District of Columbia.