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Payday loans are generally short-term loans which are unsecured and usually tend to have quite high interest rates. The borrower writes a check for the lender which is postdated for the payday salary, but receives immediate cash equivalent to part of the payday sum. In this instance, the borrower receives the money early in order to overcome financial issues, and then has the option to repay the loan when they receive their salary at the end of the month.

 

Why Should I Take A Payday Loan?

 

Payday loans can be extremely beneficial for those facing financial hardships, allowing them to take loans to last them until the next paycheck. Payday loans are also one of the fastest ways of obtaining money, making them useful for those needing to cover bills or finance unforeseen circumstances.

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Am I Eligible For A Payday Loan?

 

In order to be eligible to receive a payday loan, you must be a US citizen and an adult over the age of 18. In addition to this, the recipient of the loan must also have a salary exceeding $800 each month and access to a live checking account where the loan can be deposited.

Approval for a payday loan is often dependent on credit scores. While it is more likely that you will be approved for a payday loan with a better credit score, you can be accepted for the loan without one as many companies including Dollar Hand accept applications from those with various types of credit history. It is free to submit a form for a payday loan and the submission should not impact credit ratings whatsoever.

 

What Can You Use A Payday Loan For?

 

Payday loans are ideally used for short term fixes for those having financial issues despite having a stable income. For example, payday loans can be used to cover veterinary or hospital bills or repair cars if unforeseen circumstances do occur. Payday loans are designed to help people until they receive a monthly salary and should never be used in order to make repayments on previous or alternative loans, or to make unnecessary purchases.

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Where Can I Apply For A Payday Loan?

 

It is possible to apply for a payday loan with Dollar Hand. This can be done completely online and there is no charge for submitting an application form. The process is relatively quick, taking just a few minutes, and requires applicants to provide basic details and information regarding the type of loan you are applying for.

After this part of the process is complete, Dollar Hand will locate the best options for you quickly and allows you to see instantly whether your application has been approved. Alternative banks do not always offer this option and can take several weeks to decide whether to approve a loan application, whereas Dollar Hand allows you to have a better picture of your finances and maintain control until the borrower receives alternative income.

 

How Much Money Should I Borrow?

 

Payday loans are available from $100 up to $35,000. It is important to keep in mind that payday loans should only be used for emergency and unforeseen circumstances, designed for one-off payments. Alternative loans or sources of income should be considered for more significant amounts of money, especially as borrowing excessive amounts of money may make it difficult to make the repayments within the given time. When deciding on how much money to borrow, always ensure you will be able to afford the repayments and review your income to check you are making the correct decision.

 

How Long Should I Borrow A Payday Loan For?

 

It is always crucial to take into consideration how long you will need a loan to overcome any financial difficulties. It is always possible to choose the 2-4 week period, allowing you to reach the next payday and then repay any money borrowed in one overall payment. It is also possible that people may need longer to repay loans, and it is therefore an option to take a loan for up to 5 years and pay it back on a monthly basis in equal instalments. If you take the second option, it is possible to make repayments early and consequently save money on the interest rates.

 

What Are Payday Loan Price Caps?

 

Payday loan price caps protect borrowers from paying excessively high interest. They seek to prevent predatory lending and vary by US state, as shown below:

State Max Interest Rate
Alabama 456%
Alaska 435%
California 460%
Colorado 36%
Delaware 391%
Florida 304%
Hawaii 460%
Idaho 652%
Illinois 36%
Indiana 382%
Iowa 433%
Kansas 391%
Kentucky 469%
Louisiana 478%
Michigan 370%
Minnesota 390%
Mississippi 521%
Missouri 527%
Montana 36%
Nebraska 36%
Nevada 652%
New Hampshire 36%
North Dakota 520%
Ohio 138%
Oklahoma 207%
Oregon 156%
Rhode Island 261%
South Carolina 391%
South Dakota 36%
Tennessee 460%
Texas 664%
Washington 390%

So where payday loans are legal, there are price caps of around 300% to 600% APR, but where payday loans are not legal, it is capped strictly at 36% APR maximum.

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