Payday Advance Solutions
An online payday advance is the most popular type of short-term loans. Small amounts from $100 to $2500, typically due within two or four weeks when you receive your next paycheck.
Key Features
Understanding what makes payday advances the right choice for emergency funding
Quick Access
Get cash advance funds deposited as soon as the next business day
Small Amounts
Borrow only what you need, typically $100 to $2,500
Short Terms
Repay on your next payday, usually within 2-4 weeks
Unsecured Loans
No collateral required - based on your income and ability to repay
Payday Advances are Unsecured Loans
Online lenders do not require collateral because the credit is unsecured. Collateral is an asset that a lender receives as a guarantee for a loan. It serves as a form of insurance for the lender. In other words, if the borrower fails to make payments, the lender may repossess the collateral.
How to Get a Payday Advance with ShinyLoans
Payday advances are intended to be quick and easy to obtain if the applicant has a source of income and meets all other prerequisites. They are designed to provide consumers with quick cash to tide them over until their next salary or income arrives.
If you have informed yourself enough about this product and truly believe that it is the right solution to the problems you are currently experiencing, then the only thing left to do is to click the Get Started button. To qualify for a ShinyLoans payday advance, our clients must complete three simple steps:
Fill Out Online Form
Complete our simple request form with no attachments or paperwork required
Get Matched with Lenders
We send your information to our network of third-party lenders for review
Receive Your Funds
Once you sign the agreement, funds are deposited directly to your account
Payday Advance Basic Requirements
According to the government's Consumer Financial Protection Bureau (CFPB), payday lenders only require consumers to:
Requirements
- Be at least 18 years of age
- Provide contact information
- Have an active checking account
- Be a permanent resident of the US
- Provide proof of income
- Share Social Security number
Credit Requirements
Payday loans are available to people with bad credit and do not require a hard pull. According to the Pew Charitable Trust, approximately 12 million Americans use cash advances each year, and the majority of them do not have access to a credit card or a savings account.
Repayment Process
When the loan is due, the client should either pay it off or authorize the lender to cash a postdated check or make another withdrawal from the borrower's account.
Interest Rates for Payday Advances
Understanding APR
Cash advance payday loans are typically associated with high-interest rates. Many states, however, have passed cap laws that limit interest rates and authorize small credits in most areas without increasing loan sharking. Quick small credits usually have an annual percentage rate (APR) of 400 percent or higher. To borrow $100, the interest rate ranges from $15 to $30.
Calculate Your APR:
1. Divide the amount of interest paid by the amount borrowed
2. Multiply by 365
3. Divide by the length of the repayment term
4. Then multiply by 100
Payday Advances in The States
The availability of this credit via the Internet has significantly increased in recent years. To protect consumers in this area, the Federal Trade Commission (FTC) enforces a number of laws. Moreover, online payday lenders are typically subject to state licensing laws and rate caps in the state where the borrower obtains the cash.
Permitted States
Have specific statutes that allow payday lending
High-Cost Lending
Permit high-cost payday lending by state laws or regulations
Protected States
Protect borrowers through rate caps or other prohibitions
Lower Rate Options
Offer lower rate caps or longer terms for less expensive loans
Some states have laws governing how much payday lenders can lend and how much they can charge for loans, while others, such as New York, outright prohibit the practice.
Payday advances that are due on the borrower's next paycheck are legal in states where legislative bodies have either deregulated small loans or excluded payday advances from the traditional small loan or usury laws or passed laws to authorize loans based on the borrower's check or electronic payment from a bank account.
How to Use a Payday Advance
When an emergency arises and no savings are available, most Americans will take out a payday advance. Payday advances can be used to help pay for a wide range of expenses.
Emergency Expenses
Home or car repairs, medical bills, utilities, or rent payments
Debt Consolidation
Pay off multiple smaller debts with one payday advance
Bridge Financial Gaps
Cover expenses when no savings are available until next payday
What is Debt Consolidation?
The act of taking out a new loan to pay off debts is referred to as debt consolidation. Multiple debts are combined into a single debt, such as a loan, with more favorable payoff terms. Debt consolidation can help you manage your student loan debt, credit card debt, and other liabilities.
Payday advances are also used to pay off previous debts. Debt consolidation entails borrowing money to repay multiple loans, with the goal of breaking the cycle of re-borrowing high-interest debt.
What is The Procedure for Consolidating Payday Loans?
When a borrower is unable to repay the loan, he or she may obtain a new credit to repay the original one. This process is known as rolling over the loan. A rollover, on the other hand, will result in additional fees and an increase in the cost of borrowing.
How to Avoid Payday Loan Consolidation
Debt consolidation is not the best option for all borrowers. Fortunately, it is possible to obtain debt relief without incurring new debt. Here are a few ideas to consider:
Contact Your Lender for Extended Payment Plan
Many payday loan lenders are CFSA members and can offer Extended Payment Plans (EPP) to repay over longer periods without additional fees or interest.
Seek Non-Profit Credit Counseling
Work with certified financial advisors who help determine your situation and debt-reduction options. Most nonprofit debt counseling services are provided at no cost.
Credit Score Impact
Do Payday Advance Loans Aid in Credit Building?
Even if you make your payments on time, it will not improve your credit score because the information will not be reported to any of the three national credit bureaus — Equifax, Experian, and TransUnion. As a result, these credit options will not help you increase your credit scores.
Do Small Loans Have a Negative Impact on Your Credit Score?
Borrowers do not have to undergo a hard pull to obtain a cash advance loan, thus it does not have a negative impact on their credit score unless the borrower fails to make payments on time. If the clients do not make timely payments, the lenders may send the case to a debt collector.
Collection Impact
These agencies provide information to credit bureaus, which may result in their payment information appearing on the credit reports. Accounts sent to collection agencies surely have a negative impact on credit scores.
What Else Can Happen in Case of Default?
Depending on where you live, lenders can also:
Attempt to contact you by calling your family, friends, and employer
Sue you
Garnish your wages
What is a Wage Garnishment?
Wage garnishment is a court order that requires you to transfer a portion of your income to pay off a debt. Wage garnishment occurs when a court orders a portion of your wages to be withheld and sent directly to the lender or person to whom you owe money until your debt is paid off.
What are The Advantages of Payday Advance Loans?
Payday advances can be used to help pay for a wide range of expenses, including almost any unexpected expense you can think of. Let's look at their benefits and see how they work:
Easy Online Access
Apply online in minutes and get funds transferred to your bank account the same day, unlike traditional banks
No Paperwork
Online applications save time with no waiting in lines, no bank meetings, and no documentation required
Bad Credit Accepted
Less stringent criteria than banks - borrowers with bad credit and low incomes commonly approved
Zero Collateral
Unsecured borrowing means you don't need to put your car, home, or other valuables at risk
Payday Advance Loans Come with a Cooling-off Period
In general, you can cancel your loan agreement within two business days of signing it. Payday loans, like all forms of borrowing covered by the Consumer Credit Act of 1974, have a cooling-off period. This means that if you change your mind, you have the right to cancel the agreement within two days.
This is known in the industry as the cooling-off period. Maybe a friend or family member can now lend you the money instead. It doesn't really matter why you want to cancel because you aren't required to tell your lender why.
Summing up, this credit allows you to borrow the amount of money you need in a matter of hours. Thus, it may be a valuable option because being denied for other types of credit may have a negative impact on your credit.
To summarize, payday advance loans, if obtained under the right conditions, can help you in a short-term financial crisis.
ShinyLoans is Here to Help!
Whatever your reason for borrowing money is, ShinyLoans can help you get it quickly and easily in the form of a payday advance. We work with a large network of reputable lenders who have been carefully selected and are ready to provide the necessary funds. Our platform is secure to use and operates in a transparent manner, and is accessible to all of its clients. Furthermore, we work without any extra fees and our services are completely free of charge.