Payday Loans

Search and apply for payday loans online here with zaving today.

Last updated by Zaving Editorial Team, on April 26th, 2024

Are you looking for payday loans? If you need some urgent cash to get you through a tight spot, you can turn to zaving to help you explore your options. Our online service makes applying for a loan quick, easy, and hassle-free. If your loan is approved, cash can land in your bank account straight away – it's as simple as that! Start the application process right here today with zaving.

What are payday loans and how do they work?

Payday loans, also known as payday advances, are short-term, small-dollar loans designed to bridge the gap between paychecks. They are typically for small amounts, generally less than $1,000, and are repaid in a lump sum on the borrower’s next payday. These loans are intended to provide quick access to cash for unexpected expenses, such as car repairs, medical bills, or rent payments.

Payday loans can be easier to qualify for than other loans, even if you have bad credit or no credit history at all. This can make them a convenient option for people who need cash fast.

To get a payday loan through zaving, you will typically need to provide your name, address, date of birth, phone number, and bank account information. Your chosen lender will then verify your employment details and income. You may also be required to provide proof of identification. If approved, you'll receive the loan amount directly or through a deposit.

You will need to repay the loan, including the principal amount, fees, and interest, on your next payday or within a set time period. If you cannot repay the loan on time, you will likely be charged additional fees and interest, which can be substantial.

How much do payday loans cost?

The costs of payday loans are determined by a combination of factors, including the loan amount, interest rate, fees, and the repayment period.

  • Interest rate: Payday loans typically carry high interest rates, often ranging from 300% to 400% APR. This means that you could end up paying as much in interest as you borrowed in principal.
  • Fees: Payday lenders often charge a variety of fees, such as application fees, origination fees, and late payment fees. These fees can add up quickly and significantly increase the overall cost of the loan.
  • Repayment period: Payday loans are typically designed to be repaid in a single payment on the borrower's next payday. This short repayment period can make it difficult for borrowers to afford the payments, which can lead to additional fees and interest.

Here is an example of how the costs of a payday loan can add up:

Let's say you borrow $300 with a payday loan that has an interest rate of 391% APR and a $30 application fee. The total interest on the loan would be $117.30, and the total fees would be $30, for a total cost of $147.30. This means that you would end up paying $447.30 to repay a $300 loan.

What are the pros and cons of payday loans?

There are both pros and cons to payday loans. Advantages include:

  • Quick access to cash: Payday loans can provide quick access to cash when you need it most, often within 24 hours of applying.
  • Easy to qualify: Payday loans often have less stringent eligibility requirements than traditional loans, making them easier to qualify for, even with bad credit.
  • No collateral required: Payday loans typically do not require collateral, such as a car or house, which can make them more accessible to borrowers.

However, there are also disadvantages, such as:

  • High fees and interest rates: Payday loans have some of the highest fees and interest rates in the consumer finance industry, which can lead to a cycle of debt if not repaid promptly.
  • Risk of predatory lending: Some payday lenders may engage in predatory lending practices, such as hidden fees, aggressive collection tactics, and unrealistic repayment terms.
  • Short repayment terms: Payday loans typically have very short repayment terms, often requiring borrowers to repay the entire loan amount in a matter of weeks, which can put a strain on finances.

More of your frequently asked questions about payday loans

Are payday loans available in all U.S. states?

No, payday loans are not available in all U.S. states. As of 2023, 18 states and the District of Columbia have banned payday loans, while 32 states and Puerto Rico allow them with varying restrictions.

Can I get a payday loan with bad credit?

You may be able to get a payday loan with bad credit. Payday lenders often prioritize your income and repayment capability over your credit score, making it possible to obtain a loan even with poor credit history. However, it's important to note that having bad credit might result in higher interest rates or fees associated with the loan.

What happens if I default on my payday loan?

Defaulting on a payday loan can have serious consequences. If you fail to repay the loan according to the agreed terms, the lender may charge additional fees, report the delinquency to credit bureaus, and even pursue legal action against you. These actions can severely impact your credit score, making it harder to secure loans in the future. Moreover, continual non-payment can lead to debt collection efforts, including calls, letters, and potentially being taken to court.

If you are struggling with repayment, consider seeking financial advice and help from credit counseling agencies or debt relief organizations.

What are some alternatives to payday loans?

Alternatives to payday loans include seeking assistance from credit unions or community banks that offer small-dollar loans with lower interest rates. Additionally, exploring options like negotiating payment plans with creditors, seeking help from non-profit credit counseling agencies, or considering peer-to-peer lending platforms can provide more affordable borrowing options than payday loans.