If you are looking for small cash loans with a short-term payment schedule, then a payday loan can be an option 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 (see below the table) 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 with no credit check, 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 or even more.
Most loans are taken up to $500 and it’s not so small amount. We have checked all states where payday loans are legal (check also the map of store locations and households income), and almost all states don’t have min limit for such loans, just Indiana has a $50 min limit.
These are short-term loans that will need to be paid back with interest in a shorter amount of time.
Payday loans are usual unsecured. Unsecured means that collateral is not needed.
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 loan organizations 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
Use our Payday Loan Calculator
What Issues Might You Have When Applying for Payday Loans Online?
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 a law that in some states if a payday loan is made by an unlicensed business, 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 licenses. If this is an issue for you, you can turn to a lead generator site that can help you submit an application and choose the right lender with the license. This is the easiest way to get in touch with lenders that are prepared with a 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 a 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 online 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 the credit scores of lenders.
A lender will, however, look at your credit first before making a loan. The same applies to 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.
Is Instant Approval Possible for Payday Loans Online?
It’s possible, at least that’s what the payday loan online lenders promise if you leave your application online. This is possible not only during working hours but 24 hours a day and on weekends.
After the application has been left, you will need to wait several hours (usually even up to 1 hour) to receive a positive or negative answer.
The application can be left directly on the lender’s website, as well as on a special system (lead generator). The only difference is that if you leave an application with a direct lender, then after refusal, you will need to leave a new one on another site. When leaving on a special system, your application will be sent to several lenders at once, which also saves you time.
Which Online Lender is the Best?
It should be noted that the payday loan online lender must have a license to provide a loan online.
An important factor is the level of commissions that the company takes for a loan.
Let’s look at the example of the state of Texas, companies with online licenses and their prices:
|Check Into Cash||$100||$25.47||664.04%|
The difference from the table is insignificant. For every $100, you will pay approximately $25. The best company in the table is AceCashExpress, which charges the least fee ($25.38).
Our advice: also look at the reviews and the average rating.