Get Quick Payday Loans Up To $500
Most U.S. residents are struggling to make ends meet. In fact, only 28% of Americans are considered financially healthy, according to a survey by the Center for Financial Services Innovation (CFSI). Forty-four percent of respondents stated that their monthly and yearly expenses exceed their income, while another 42% reported having no retirement savings.
Those who are struggling to make ends meet monthly can turn to small-dollar funding to mitigate costs. While large personal loan amounts can range from $1,000 to $50,000, consumers can take out $500 payday loans, $200 payday loans, and even $100 payday loans online.
Payday loans are cash advances that are typically taken out against a borrower’s next paycheck. To this end, loan terms are typically two to four weeks, at which time a borrower must pay back their full loan amount, plus interest.
These loans can be used for a variety of purposes such as unexpected medical expenses, unpaid rent or utility bills, home or vehicle repair costs, and other personal cash emergencies.
Payday Loan Requirements
Regardless of how much a potential borrower intendeds to take out, whether it is a $255 payday loan online or a payday loan of up to $500, the loan application process remains the same. While requirements may vary from lender to lender, most will require the following information:
- A photo ID document such as a driver’s license or passport to confirm the borrower’s identity
- A pay stub either from a regular paycheck or government benefits check
- A blank check to confirm the borrower has an active checking account
- Other documentation needed to verify the borrower’s physical address
Consumers should be cautious of online lenders that advertise “online payday loans for bad credit” or “online payday loans no credit check”, as such claims are usually false. Most state laws require that lenders verify applicants’ ability for loan repayment. This means that lenders will consider an applicant’s credit score and history, as well as their debt-to-income ratio, in some cases.
Further, while payday loans for SSI recipients and payday loans for those who are unemployed are viable, those who fall under such categories must be able to present an alternative proof of income that shows a flow of cash.
Short-term Loans Rules and Regulations
Short-term loans are state-regulated, thus each state has its own payday lending laws. While about 31 states permit payday lending, sixteen states, plus the District of Columbia, prohibit high-cost payday lending. States such as Georgia, New York, and New Jersey have loan rate caps that make it difficult for lenders to operate within those states.
Maine, Oregon, and New Mexico permit lower-cost payday lending meaning that there are caps on the amount a borrower can take out.
Additionally, lenders are often required to have appropriate licenses before operating in a legal payday state. Borrowers should be aware of the rules and regulations associated with payday lending in their state before opting for one. Consumers who find themselves in illegal or predatory pending situations can report lenders to their local state department or attorney general.
Payday Loan Risks
While payday loans of up to $500 can be viable options for those who need a little extra cash to tie them over, there can be risks connected with such shorter-duration funding.
Short-term loans often carry high-interest rates that make the loans more expensive than traditional or conventional ones. In some cases, APRs can be as high as 300% and borrowers may need to take out additional loans to cover prior ones. This can easily trap borrowers into deeper cycles of debt. Financial advisors recommend that borrowers only take out loans if they are able to manage them and meet full terms and conditions.
Individuals can consider cutting discretionary spending in order to save money and avoid taking out short-term loans.
Consumers should also be cautious of predatory lenders and collectors that threaten or scan unknowing borrowers. To avoid being a victim of a lending scam, consumers should keep an eye out for suspicious or irregular activities and behaviors such as calls and emails that request personal or financial information, pre-approval loan notifications or offers, or the threat of jail time for debts.