Payday Loans in California can be a real life saver for many folks who are in need. Payday loans have been rising in popularity because it does not take a long time until someone can get a hold of the cash to satisfy their needs. How would it work for you? Read this article until the end so that you will be able to make an informative decision later.
Payday Loan Definition
Payday loans are short-term loans and can tend have a high cost rate. With this type of the loan, it should normally be paid within your next paycheck. Hence the term ” Payday Loan “. It’s a type of loan that is intended to be a short term solution.
Every state has different rules in terms of payday loans. Usually the amount you can borrow ranges from $100 – $1000. However, for California Payday Loans are based on the following rules:
California has a $300 loan amount limit on payday loans in the Golden State. Payday loans can be taken for a period of not longer than 31 days with the maximum finance charge of 15% for every $100 and 460%* APR. No additional charges are allowed for the extension of a loan. Rollovers are not allowed, and there are no cooling-off periods between 2 consecutive loans. There is a $15 NSF fee that is allowed for non sufficient funds.
Keep in mind that just because CA allows a maximum loan of $300.00, it doesn’t guarantee you’ll be able to borrow that much. They will check on your details such as the monthly income,expenses, as well as your payday lending history. If it is the very first time for you, the process will be much quicker.
The payday loans application is a very simple process compared to other types of loans (i.e. a personal loan, reverse mortgage, or conventional mortgage). The institutions only require your income and bank account. And the application will be accepted in no time. Payday loans are usually a great option for people who have bad or zero credit. That’s also why you want to pay it back in a timely manner because the APR is much higher than personal loans, credit cards, and mortgages.
How Does the PayDay Loan Application Work?
The payday lenders are offering the payday loans ranging from $100 to $1,000 in most states. Every state has unique rules pertaining to payday loans, but again $300 is the max payday loan amount in California.
You just need to submit your payday loan application which can be done right online. Then the lender will confirm and verify your income and check your account information. Then they will deliver the cash in no time. Depending on how fast they can provide the service, it shouldn’t take more than a day (or less) to get your money.
The lender will ask for a signed check or permission to withdraw your money from the bank for repayment.
The Online payday loans in California have made it easier for most people because they don’t even need to travel to the lender’s offices etc.. Just look for a reputable and trustworthy company to avoid issues (we have a list below in this post).
The Qualification of Payday Loan Applications
Attaining the payday loan from a trustworthy lender is simple and straight forward, but there are some basic qualifications that each potential borrower needs to meet.
First things first, you have to be of legal age to enter a binding contract. In other words, you have to be age 18 or more. Also, you will need to have an active bank account which you can connect to your payday loan account. They will auto debit your payments right out of your account so you don’t have to worry about writing checks for payment etc.. Also, since many payday loan applicants have limited qualifications, an auto debit makes the loan a little less risky for the lender. Then you will need an ID and the proof of income.
So, there are basically three important things to prepare to get the loan: an active bank account, real ID, as well as a pay stub as proof of income.
The payday loan program might reject you if you don’t have one of the terms mentioned above. But, it can also be happening because of other factors such as:
- lack of income: your income might not be viable for the term. Most lenders commonly require at least $500 monthly net income per user. You will want to ask the lenders’ representative to make sure about this.
- You already have many loans: if you are dealing with regulated and legal lenders, you must know that they have good resources to do the cross-checking. They can track loans in real time. And they get this data from their networks. So, if you already have abundant loans, it might be harder to get past the Payday Loans California application.
- Military members: it is difficult for military members. Including in California, the law prevents payday lenders from charging more than 36% APR to military members. Some military members might meet the qualifications because the lenders can work around with the APR. But in many cases, military members are excluded from being the customers of payday loans.
There are other factors that can impact eligibility sometimes as well such as bankruptcy, bounced checks, short employment, or younger bank accounts.
The variables above might be burdening your application. But as long as you have good income, the chance is usually much better. Enough income also lets your lenders know that you are capable to pay them back. After all, they won’t risk their businesses to jeopardize by lending money to those who can’t pay.
Payday Loans and Your Credit
Payday loans won’t necessarily affect your credit.
It is common that the lenders do not report on-time payday loan payments to the credit bureaus.So, even though you have a great history of the payday loan payments, it won’t necessarily affect your credit score or help in terms of building credit. It won’t help nor build your credit in the opposite way.
However, if you don’t pay the payday loan back, your credit will be tarnished. Now, if you miss payments on payday loans, the lender can report the default to the bureaus. This WILL impact your credit scores.
Payday Loan & Personal Loan Lenders
Remember, payday loans have terms that are not as favorable as other means of borrowing like personal loans, auto loans, and mortgages. It probably should not be your first choice if you have good credit. If you find that you can’t get financing by other means, here are a few good choices for payday loans:
1. YourPayDay.com (USA)
Your PayDay is another reliable source of getting a payday loan online. These guys actually do payday loans AND installment loans. Easily apply for the loan that best fits your needs at YourPayDay.com.
Excluded States: NY, AR, WV, VT, DC
Remember, you want to try and get the best terms possible if you’re borrowing money. PayDay Loans are a good options for some, but not everybody. If you have decent credit and / or decent an installment or personal loan might work better. Below are a couple of reputable lenders that can help with personal and installment loans:
Bad Credit Loan.com offers personal loans for individuals that may not have the best credit profile. If you are a US resident with not so perfect credit, you may find a successful loan approval with them. Click on the image below to apply.
2. OppLoans.com USA (full state list below)
OppLoans has a great reputation. In fact, at the time of this writing they have an average of 4.9 out of 5 stars on Google, A+ rating on BBB, and 4.8 out of 5 stars on Kredit Karma. At OppLoan, you can potentially get up to $4,000 by tomorrow! Doing an application does NOT affect your credit score and you can be approved today! Also, in terms of their interest rates, they are up to 125% cheaper than other lenders!
Visit OppLoans and get qualified here –> OppLoans.com
Here is a list of states they can help you in; Alabama, Arkansas, Arizona, California, District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Kansas,Kentucky, Mississippi, Maryland, Minnesota, Missouri, Nebraska, North Dakota, New Mexico, Ohio, Oklahoma, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, Washington, Wisconsin, and Wyoming.
2. PickALender.com (USA) (full State List Below)
Pick A Lender is a great way to connect you with the right lender for your needs. It doesn’t matter if you’re looking for debt consolidation, money for travel, credit card consolidation, home improvement, or auto financing! They can connect you. Loan amounts range from $100 to $40,000 and the application process is simple, secure, and done online.
The offer is not available in the following states: Connecticut, New Hampshire, Washington and Vermont.
Apply securely right here –> PickALender.com
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