How Long Does It Take to Get a Payday Loan?
Payday loans are fast. That’s one of the reasons people love them so much. But how long does it take to get a payday loan?
The answer to the question of how long it takes to get a payday loan depends on two things: how fast you can fill out your application and how quickly your lender processes it. Let’s dive in deeper and find out all about the cut-off times of different application methods.
Table of Contents
- Ways to Apply for a Payday Loan
- Basic Requirements for Payday Loans
- Risk of Payday Loans
- Payday Loan Interest Rates
- Can Payday Loans Affect My Credit Score?
Ways to Apply for a Payday Loan
When you’re looking for a payday loan, you may be wondering how long it will take to get your money. The answer depends on a number of factors, including the application method.
Apply at a Store
If applying in-store, you write a personal check for the amount borrowed plus the finance charge and receive cash immediately. The lender holds the check until your next payday when the loan and the finance charge must be paid in one lump sum.
Apply Online
If you apply online, it can take up to one hour for the lender to process your application and send an email with instructions for getting the money. But the funding takes up to one business day from submitting a loan application. It is also possible with some lenders to get a payday loan online while being out of your state.
Apply By Phone
If you apply by phone, the process is similar to the online process. Payday lenders will typically get back to you within 24 hours with the funding.
Apply Through App
There are many payday loan apps that allow you to borrow money through your smartphone with certain app fees that don’t exceed $5 – $10. Choose one, download it, complete the application and link your bank account to your app. The funding also takes up to 24 hours from approval decision.
Basic Requirements for Payday Loans
Payday loans, also called deferred deposit loans, are available to any adult who is over 18 years of age and has a steady source of income. You have to have a bank account, and you need to be employed for at least 3 months. You should also be in good financial standing. It’s important that you have no outstanding debts or two payday loans at once.
Risk of Payday Loans
Before asking yourself “how long does it take to get a payday loan”, start with its risks. A payday loan is generally designed for short-term borrowing, not long-term. It is because the payday loan amount doesn’t usually allow you to borrow more than $1,000. This amount definitely is not a long-term financial solution.
The second reason why these cash advance loans are risky is because they can be unaffordable if used incorrectly. A $500 loan can seem like such a small amount of money when it’s spread out over two weeks, but remember payday lending comes with steep interest rates that can add up if you don’t pay them off quickly enough or at all (read more about what it means to default on a loan).
Payday Loan Interest Rates
Payday loans typically have an annual percentage rate (APR) of 400% or more, which means they are more expensive than longer-term loans. But payday loans are not paid in monthly installments. You’ll have to pay at least $15 in fees per $100 borrowed, so be sure to factor those into your budget before taking out a payday loan.
You may want to consider alternatives like borrowing from friends or family members before resorting to payday loans. Or you can get a few hundred dollars by selling unnecessary staff or getting a part-time job. If none of the above suits you, you can take out a pledge loan backed by collateral.
Can Payday Loans Affect My Credit Score?
Yes, but not directly. If you don’t repay your check advance loans on due date or your next payday, your credit score may suffer. The longer it takes for you to pay off your debt, the more likely it is that the lender will report late payments on your credit report to the credit bureaus (like TransUnion, Equifax and Experian). And those missed payments can have a negative impact on your credit scores.
