What is a Payday Loan?

Payday loans are high-cost, short-term loans typically meant to be repaid with your next paycheck. There are cheaper alternatives to this risky loan.
A payday loan is a loan for a small amount — typically up to $5,000 — that’s meant to be repaid with your next paycheck. Payday loans require only an income and bank account and are often made to people who have bad or nonexistent credit.

Financial experts caution against payday loans — particularly if there’s any chance the borrower can’t repay the loan immediately — and recommend that they seek one of the many alternative lending sources available instead. Payday loans look different in nearly every state. They may go by names such as cash advance, deferred deposit, deferred presentment, or credit access business.

Why should I get my payday loan from Minute Loans?

Online payday loans that advertise no credit checks can be misleading and may be used by some companies trying to gain your business. If you are looking for no credit check loans or bad credit loans, give us an opportunity to connect you to a lender that may be able to help. A number of our customers could have a poor credit history, though some may be approved for payday loan depending on their credit situation. There is no such thing as no credit check or guarantees when it comes to payday loans, although you may have read it elsewhere. We work with many lenders, which can improve your odds of receiving a decision. Whether you need $300 or $500, people with bad credit can use payday loans to help make ends meet.

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we provide a service that aims to quickly connect customers with a lender that offers loans that may work for them

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Benefits of payday loans

Here’s why some people turn to payday loans, despite the often negative consequences :

Easy to access : The number one advantage of payday loans is that they’re easy to access. In fact, many cash advance lenders promise access to cash within 24 hours and an immediate lending decision. Some are even available 24 hours a day, 7 days a week and have online applications. Unlike traditional loans, which can take time to apply for, these loan applications can take as little as five minutes.
Fewer requirements than other loans : Traditional lenders usually require a Social Security number, photo ID, proof of income, a credit check and will verify your ability to repay a loan. Unlike traditional personal loans, most “fast cash” loans have fewer requirements to apply.
- Be at least 18 years of age
- Have a government-issued ID or Social Security number
- Have a regular job or other regular source of income
- Have an active bank account

Don’t check your credit : Unlike traditional loans where you need good credit to be approved, payday loans don’t require a credit history. Since they don’t pull your credit, that also means no hard credit inquiry, which can lower your credit score by several points. Except in rare cases, however, payday loans won’t help build the credit you need to move onto higher quality financial products in the future.

It’s an unsecured loan : Unlike a car title loan, traditional auto loan or mortgage, payday loans are not secured by personal property. This means that if you default (don’t pay), the lender can’t seize your property as a consequence. While not secured, payday lenders often have access to your bank account as a condition of the loan, which is a different type of risk. They can also take other measures, such as sending your debt to collections or taking you to court over outstanding balances.