If you are looking for small cash loans with a short-term payment schedule, then a payday loan is the ideal choice for you. Traditionally, you will find these loans available online from lenders for a value of $500 or less. You can choose the amount up to $500 that you might need loaned to you. This is a legitimate form of loan in most states.
You may also know this type of short-term loan called ‘cash advance loans’ as they allow you to get some much-needed cash prior to your payday to pay for bills or any immediate purchases.
What Does SMALL Payday Loan Mean?
Small payday loans are normally categorized as cash loans, as they get you instant access to cash to pay for bills or emergency expenses as needed. These amounts are typically restricted by the lender or state policy at an amount under $500.
These are short-term loans that will need to be paid back with interest in a shorter amount of time.
What is the Maximum Loan Amount In Each State
According to the laws of every state, here is how much you can receive:
|Nevada, Oregon||Limited to 25% of income|
|Utah, Wyoming||No limitations|
|Idaho, Illinois, Delaware||$1,000|
|Alabama, Florida, Rhode Island, Kansas, North Dakota, Iowa, Missouri, |
Kentucky, Tennessee, Mississippi
|Indiana||$550 ($50 Minimum value)|
Utah and Wyoming have no limits on the value of a payday loan. These two states allow loans over $1,000 if necessary.
California has the lowest maximum borrowing capacity at just $225. While the rate in this state is very low, the interest rates are very high. California has a standard rate on payday loans of 460% APR.
Indiana is the only state in the USA with a minimum loan limit of $50.
If you are pursuing an online payday loan, most lenders will not accept amounts less than $100. This is considered the unwritten lending minimum by lenders rather than state governments. You may still have a chance to get less than $100 if needed from certain lenders.
How Can You Calculate the Cost of a $50 Loan
Now that we know that most lenders will give payday loans of $100 or more, but let’s do the math on the costs of a $50 loan.
Using Indiana as an example, lenders have a 15% fee for all payday loans.
You will pay $7.5 for the fee of the 14 day payday loan.
To calculate the final amount including the ARP, we will use a short equation:
$7.5 (fee) / $50 (amount lended) / 14 (days) * 365 (days in a year) * 100 = 391% APR
What Issues Might You Have When Applying for an Online Payday Loan?
Modern legal regulations require all online and physical lenders to have financial licenses for lending. These licenses also include regulations on payday loans (differences applying online and in-store).
When taking out a payday loan online, some companies may hide the information of the licenses and may not say which exact state they are licensed in. It is law that in some states, if a payday loan is made by an unlicensed business, that the loan will be void and therefore valueless. If this is the case, then the lender may not have the legal right to collect the repayment or requirement to repay the loan’s value.
An online payday loan company will often decline the loan application from states where companies don’t have licencees. If this is an issue for you, you can turn to a lead generator site which can help you submit an application and choose the right lender with the licence. This is the easiest way to get in touch with lenders that are prepared with small loan to provide at a moment’s notice.
These lead generator sites will collect all of your essential information needed to apply for the loan. This includes:
- Date of birth
- Social security number
- Checking account number
- Loan amount requested
The application that you submit will then be forwarded to the lender that is willing to provide you with the requested loan amount. However, this does not stop you from receiving emails or calls from other lenders that have seen your application.
Keep in mind that lead generators might not find you the ideal loan, in terms of repayment requirements and costs. Be sure to do the proper research to find the most affordable and manageable loan for your needs. Be cautious of websites that promise only the lowest cost loans.
Requirements to Get an Small Online Payday Loan
In order to apply and be considered for a small payday loan, there are some general requirements across the country: If you obtain payday loan online, you need to have some requirements:
- Be of legal age (at least 18 years old)
- Own a checking account with ACH Authorization
- Currently Employed
If you try to apply for a loan on a lender’s site or on a lead generator site without meeting all of the requirements, your application will be thrown out. There is absolutely no way around these requirements to get a payday loan.
Payday Loans – The Loans With No Credit Check
Payday loans are famous for not being impactful on your credit reports in most cases. It is very important to remember that these are useful for those with low credit ratings or no credit history, but the high interest can lead consumers into debt.
The three major national credit reporting companies do not report payday loans to consumers, so they do not negatively impact credit scores of lenders.
A lender will, however, look at your credit first before making a loan. The same applies for lenders that specialize in loans for customers who have no or little credit history.
Some lenders will pull a credit report or search for additional information from credit reporting agencies in order to confirm your identity and see if there were previous declarations of bankruptcy.
Lenders can also check loan databases online. In some states, such as Alabama, Florida, Delaware and others, there are restrictions on the amounts of payday loans you are able to receive. If the software reports that a consumer has had more than one loan in the year, the consumer may not be eligible for the next payday loan until a specific date.