Payday Loans Online – Detailed Guide

If you have ever tried to read about Payday Loans Online, the first definition pops up in Wikipedia and after reading that definition, a person will clearly feel lost in so much unuseful content that the website provides to an average user who is not well aware of the financial jargons.

That’s why we came up with a blog to simplify the information for the common people.

So, Simply putting it in the straight and simple language we can refer to the definition of Payday loans as-:

Online Payday Loans is just the cash advance or the amount which is lent to anyone on the interest basis which will be repaid by the borrower on the next payday along with other charges.

Payday Loans Online

Now, naturally, the next simple question arises how to get this and what would be the benefits of getting this?

In case of an emergency in your family or your business, you can easily get a small amount for solving the problem and you can repay it when you get the salary.

Another benefit is that you can get the amount within a few hours or a maximum of 2 hours.

Different states have different rules regarding getting the payday advance online and many states have set the limits of getting the maximum amount of instant cash, for example, $500 is a common loan amount which you can get at maximum and below this amount, obviously.

Note: This rule is in some states only. So it is highly advisable to go through your state’s rules before applying for one.


There are mainly two ways of getting a loan -:

The first method is getting cash loans online through online merchants or lenders.

The Second method involves you being physically present at the lender’s office and getting the cash advance and now the thing is he can be a direct lender or someone who is getting money from someone else and then lending you.

Now in this blog post, we are going to talk about the first method which covers getting the loan online at the ease of sitting at your home.

Online Payday Loans Requirements


Anyone who wishes to get a small cash loan -:

  • Must have a working Checking Bank account in any of the banks in the state.
  • Must have a steady source of income and identification proof such as a social security number or any other identification proof provided by the government.

Note : You must have a checking bank account as the savings account is not accepted by the lenders.

Now, let me walk you through the steps of getting the Paycheck Loans .

Check out the video explaining the steps or you can read the content below.

Read the steps below :

Step 1 Apply for a payday loan by submitting an application online and you will need a valid ID, a verified source of income and checking account information.

Step 2 After submitting the application and confirming the information . You need to enter the loan amount you need.

Step 3 If you are approved for the application and depending upon how much you have asked for, you will be asked to submit your signatures online.

Step 4 Getting the cash from the lender which includes different methods (explained below)

Step 5 Now, as you have got your payday loan the last step is to simply repay the loan and the repaying of loan is according to the loan agreements and disclosures which you have set with the lender.

There are three ways of collecting the cash depending on the lender and the amount you are asking for :

  1. Direct Deposit: The amount is directly deposited in the bank account by the lender.
  2. Instant funding: This service is offered by only a few lenders in which they will send the money directly into your debit card which they have provided you.
  3. Cash In-store Pickup: You can pick up the cash from their offline store according to their pick-up time disclosed to you.

Now, there is a very common problem wrangling around that the payday loans online have a very high APR, now APR refers to the annual percentage rate. So, don’t let the high APR scare you,

First of all understand what is an APR, it is this the annual percentage rate which you will have to pay during repaying the loan amount, the high APR only effects you if you take the payday loan for the entire year or you extend the loan , but fortunately these loans are only for a few weeks so you don’t have to pay the high APR in majority of cases.

Let us understand this with a quick example :

let’s say you took a loan of $100 for 14 days at an interest of $17.50 per $100 then, your APR would be 640 % for the entire year.

The high APR affects you only if you take the loan for a shorter period of time and extends it.

Source : The balance

So, on a Side Note for a Safety Precaution, You Must Read All the Agreements and the Interest Rates Very Thoroughly Before Taking a Quick cash loan or Talk to the Representative in Complete Detail.

Payday Loans Online Fact

Now, let’s look at some of the FAQ

Why short term loans are needed in first place?

Payday loans are better known as the temporary solution for your short-term financial needs which can be anything for example medical emergency, paying for avoiding NSF fees for high interest on credit card purchases or cover an urgent bill.

Documents needed to apply for Payday Loan?

  • A Minimum age requirement in your state i.e. 18 which is in the most States
  • An Open and active checking account
  • A steady source of income
  • valid ID and delete the email address.

How much time does it take to get the loan amount?

It fairly depends on the amount you have asked for and the type of lender you have chosen .

If you have chosen the Same Day Direct lender you will easily get the loan within 24 hours or even less.

How do I pay off my loan?

Different payday lenders have different options to pay which includes repayment with a debit card, cash pay off, automatic payment from a bank account, or the post-dated cheque.

How much will I owe on my due date of the loan?

When you borrow an amount from the lender then you both agree on some common loan agreement terms and the interest rate on the late submission of the loan amount.

Which means that when you will repay the loan amount if you are submitting the amount after the due date then according to your loan terms you will be charged an interest and the principal amount.

I have a very Bad Credit Score . Can I get a Payday Loan?

Yes ,definitely you can get a payday loan even with a Bad Credit because majority of payday loan lenders don’t consider the credit score in evaluating the chances of you to repay the loan.

Unlike the traditional bank loans payday lenders don’t consider your credit score at all .

Will my credit score be affected if i apply for an Online Loan?

No, your credit score won’t get affected at all because most of the direct lenders follow the No Credit Check policy which means your credit report won’t get affected at all.

So we hope we were helpful in providing yo with the necessary information you need .