Payday loans are one of the easiest ways to access short-term loans for as low as $50 to as much as thousands of dollars to solve your immediate needs and attend to other matters. The interesting part is that you can repay your payday loan with your subsequent paychecks.
Additionally, you do not need to have a good credit history. All you need is a stable source of income and a bank account in which your loan amount will be credited. Thus, there is no need to worry if you have poor credit. You can get payday loans and sort yourself out when things are tight till you grab your next paycheck.
Why Do You Need To Compare Payday Loans?
Getting a payday loan is much like the process of purchasing in the open marketplace. How’s that? Everyone looks for the best deals—the most friendly and favorable prices for goods and services received. In essence, knowing how different payday loans compare helps you get the best personal loan amounts at very friendly interest rates.
So, when you compare payday loans, you can weigh the features, terms, and conditions offered by different lenders and see how your income and budget stack up against the loan and its financial charges.
That being said, comparing loan offers from lenders opens you to greater transparency. For instance, you’re able to see how all your loan charges add up and how your lender uses continuous payment authorities to withdraw from your account, how to stop the CPAs, and many other insightful details. As such, you’ll be ready to embrace and satisfy your loan terms with zero stress.
Comparing Payday Loans
There are certain things you need to consider when getting payday loans. These factors will help you choose the best payday loan that aligns with your budget, saves you time, and delivers your dream payday loan right into your bank account with ease.
Here’s how to compare payday loans—things you should analyze before grabbing one to make the most worthwhile payday loan choices:
Minimum and Maximum Loan Amount
Loans range somewhere from $50 to as high as $2000+. Finding a payday lender that offers a loan range within your needs is key. Note that your loan amount depends on your state’s laws and your earnings.
For instance, it may not be in your best interest to get a one-month long loan of $1500 when you earn $1000 per month and your state’s payday lending cap amount is $500—unless, of course, you make it a long-term loan and pay in installments.
While it’s customary for a payday lender to consider your income when deciding the best amount to lend you, some payday lenders may not check your income and ability to repay. This may leave you financially strained in the end, which is not what you desire.
At Capital Pacific Loans, we link you to your choice payday loans, aligning with your income and general budget. For many states, maximum loan amounts are around $300 to $1,000. So it makes sense to go through your state’s payday lending statutes to see how much you’re allowed to borrow and prepare yourself.
Although you may be allowed by the law to borrow up to a certain amount of money, it still doesn’t imply your lender will give you that maximum. It’s their responsibility and in your own best interest if they compare your loan request with your income and other prevailing financial situations.
Minimum and Maximum Loan Term
One of the factors that determine your payday loan’s affordability is the loan term, and your loan term is often determined by your monthly budget. Your monthly budget represents an overview of what you have left (or can afford) after you’ve taken care of your regular bills.
For most payday lenders, loan terms usually range from seven days to 180 days (six months). If you can’t keep up with the loan repayment schedule, you may want to consider long-term personal loans instead. It will help buy you more time to pay it off while you’re able to execute your monthly budget seamlessly.
It is important to remember that longer-term loans usually attract more interest. But, it doesn’t really matter as long as you can afford the interest and keep yourself from the trouble of short-term loans that would otherwise be a hassle to settle.
APR (Annual Percentage Rate)
It is very important to compare the annual percentage rate of a prospective lender with other payday lenders. The reason is that although APRs are around 400% on average, they may differ slightly across state lines and between payday lenders. We are looking at between 391% to 600%+ APR.
Anyone applying for a payday loan naturally wants a lower, cheaper amount to save more money and get back at their previous loans or overdrafts. Interestingly, some states have cut down their payday loan interest rates to an extent to help customers benefit more from payday loans. States such as Virginia, Indiana, Illinois, Virginia, and Tennessee took the lead in 2021 to decrease payday loan rates.
Here’s why you must check out and compare APRs before making a deal with a lender: 18 states cap interest on payday loans of $300 at 36 percent, while 45 states, including Washington DC, have caps for loans of $500, some of which are high. So we’re looking at a median rate of 38.5 percent.
Then again, some states have no caps at all. For instance, the APR in Texas is not fixed and can reach as high as 662% on a loan of $300. That’s not meant to scare you; instead, it should give you a reason to compare payday loans within your state and among lenders to see how their APRs add up.
Additionally, APRs tend to drop when you take more significant payday loans, meaning that you would not have to worry about high APRs when you apply for personal loans that are considered in the higher ranges (usually in thousands of dollars).
As you can see, there are a lot of key factors to remember when searching for payday loans. This is why utilizing a payday lending platform like Capital Pacific Loans can help you significantly and ease any stress you may be feeling. You don’t have to do all the hard work. Our lending platform has built-in algorithms which allow our service to compare payday loans among lenders all over the US and within your state in particular.
In essence, Capital Pacific Loans pairs you with a suitable lender based on the information you provided during your registration on the website. It is important to note that we do not provide loans at Capital Pacific Loans. Instead, we are a connection service that takes on the hard work for you. Our service includes comparing loans and lenders’ conditions, matching your application to the right network of lenders, and helping you decide the best fit for your loan needs and budget.
Capital Pacific Loan charges you a subsidized fee to link you to the right lender. A payday loan matching service like ours is a worthwhile solution if you want to save time and energy. All you’ve got to do is submit your application, and you’re able to compare loan offers from reputable lenders in the United States within a few hours.
Other Finance Charges
Finance charges include, but are not limited to, the percentage interest rate you pay to the lender as an incentive to offer you their service, origination fees, loan extension fees, default fees, and early repayment fees. These fees are all ways of compensating your lender for the service offered.
You may want to go through the features of any payday loan you want to borrow from, such as how much they charge for origination/acquisition fees, monthly maintenance fees, etc. You can find the general laws guiding these fees under your state’s payday laws. Plus, you can compare them with the payday loan you want to opt for to see whether or not their charges align with state statutes.
The federal Truth in Lending Act (TILA) mandates payday lenders to disclose all interest rates, penalty fees, and standard fees to consumers. It’s the federal government’s way of making lending more transparent and protecting you against unfair credit charges.
However, it’s imperative to know how all the finance charges on your loan add up so you can better prepare your expectations ahead of time and repay the loans from a transparent perspective.
While it’s easy to reach out and grab a payday loan from any lender, not all interest rates from payday lenders out there are friendly enough to align with your budget. According to a Pew Charitable Trusts report, it takes borrowers about five months to repay loans with several hundreds of dollars in finance charges—which is why you must weigh properly between lenders to see how their interest rates add up.
You don’t have to be in the dark as to how much interest you’re paying on your loan, plus the service fee charged by your lender. Maybe you’re wondering how to go about comparing service charges and additional fees among lenders.
Not to worry, Capital Pacific Loans has got you covered. You don’t need sleepless nights of scouring every resource out there for payday loans with friendly finance charges. All you’ve got to do is send in your application, and then we connect you to legitimate and reputable lenders with the best finance charges.
Loan Requirements, Terms, and Conditions
Before you get a loan, you must read the features of the loan according to the lender. Such info should cover how you will pay back your loan, what happens if you don’t pay back, and extra fees you may incur by not paying at a certain time. The lender should also provide info on the suitability of the loan for long-term borrowing.
Information such as how lenders use continuous payment authorities (CPAs)—recurring payments used to get money from borrowers’ accounts—should be contained in the terms and conditions so that borrowers are not taken by surprise when they begin to see withdrawals from their accounts. Lenders must also explain how these CPAs can be canceled.
Here are the requirements for a payday loan as laid down by the Consumer Financial Protection Bureau:
- You must be at least 18 years old.
- You must have an active bank account, credit union, or prepaid card account. An account will be a point of contact to deposit your funds and draw repayments when it’s time.
- Provide proof of income from your job or elsewhere, which will help your lender to make the best loan decisions for your interest.
- A valid means of identification.
- A working phone number that receives text messages.
- You must live in an eligible state.
It’s also important to skim through your online lenders’ terms to see if there are options for early repayment of loans. If so, we recommend checking whether there are any advantages attached to paying early such as reducing your finance charges.
Grabbing any payday loan without doing the research could prevent you from getting the best deals that fit your needs and budget.
There are many factors that play into comparing loans such as loan term, loan amount, finance charges, requirements, terms, and conditions. This requires a lot of work and can quickly become overwhelming, which is why seeking assistance can be your best option.
With Capital Pacific Loans, you don’t have to bear the burden of comparing hundreds (or even thousands) of payday lenders and their offers. You can get your loan before you know it by filling out our online application and meeting all of the general requirements for payday loans as highlighted above. With just one simple application, Capital Pacific Loans will compare and find the best payday loans that are most suitable for you.