Payday loans may seem like a convenient option for cash-strapped consumers who can’t find the funds they need elsewhere. These loan products aren’t without big risk, though. Traditional payday loans come with steep APRs (sometimes up to 600%!) and big fees.
But what if there was a way to get fast cash for free? It’s possible, thanks to a revolutionary cash advance product that’s turning the industry upside down.
Read on to learn more about how traditional payday loans work, why they’re risky, and how to get a cash advance with zero interest and no monthly fee and no credit check!
How Traditional Payday Loans Work
A quick search for payday lenders will yield tons of options in states where this form of lending is permitted. You can apply in minutes online or at a physical location. Some online lenders fund loans in one business day. If you apply in person, you can walk out with the cash in hand.
How are loan proceeds repaid? When the due date arrives, the lender will initiate a withdrawal from the account you included on your application.
Qualification Criteria
The qualification criteria for payday loans vary by lender. Most require that potential borrowers are U.S. citizens or permanent residents that are at least 18 years old. When completing the application, you will be asked to provide:
- Personal identifying information- name, date of birth, Social Security number
- Proof of income- most recent pay stubs; (the lender may also accept other sources of income that can be verified, like government benefits, self-employment earnings, child support or alimony)
- Driver’s license or state-issued identification number
Loan Terms
Loan terms are also determined by the lender. However, each state has stringent requirements to which payday lenders must adhere.
The amount you’re permitted to borrow may be capped at a set amount or percentage of your income. Most payday loans are payable by the borrower’s next payday, but some state laws call for extended periods of 30 days or more. Interest rates are also capped in most states but can still be sky high.
What happens if you can’t repay the loan? Some states allow payday lenders to extend rollovers to give borrowers more time to pay.
Credit Impact
No credit check is required for a traditional payday loan. For this reason, payday loans pose an elevated risk to lenders who in turn assess hefty interest rates.
Also, know that the loan won’t show up on your credit report unless you default and it’s converted to a collection account. Before this happens, you’ll receive correspondence and should have some time to work out a payment arrangement with the debt collector.
How Much Will a Payday Loan Actually Cost You?
While the process above might seem pretty straight forward, payday loans are deemed the riskiest loans you can get.
This is true because lenders have the option to charge their customers the highest possible APRs allowed in their state. These APRs can range between 300-800% depending on where you live. There are also also admin and finance fees that can be tacked on to your loan.
Free Access to Interest-Free Cash: A Safer Alternative for Your Finances
Sound too good to be true? It isn’t! In fact, you can get free access to interest-free cash advances up to $250 from MoneyLion in the next few minutes. There’s no credit check, and upon approval, the funds will be deposited into your bank account right away.
It’s easy to qualify for an interest-free cash advance. All you need is securely link a checking account that’s at least 60 days old and in good standing. There should also be a history of deposits. No need to worry if you’re currently unemployed – deposits from unemployment proceeds, other government benefits, alimony and child support will also be considered.
When you’re ready to apply:
- Download the MoneyLion mobile app.
- Create a free account using your email.
- Link your checking account – it’s secure and quick!
- Review your Instacash cash advance offer.
There’s no obligation to accept the offer. But if you decide to move forward, you will need to indicate how much cash you want to borrow.
No need to apply once you’ve repaid the initial cash advance in full. This feature is available 24/7 as long as your account is active. So you can request funds and receive them right away any time you’re in a bind.
How To Access a Higher Instacash Amount
Want to raise your Instacash amount? Open a bank account with MoneyLion and connect your direct deposits. With direct deposits into a MoneyLion account, you’ll be eligible for interest-free cash advances of 30% of your direct deposit amount (up to $250) each time you’re paid.
See if you qualify for an Instacash cash advance.
Apply for an Interest-Free Loan Today!
Don’t get taken for a wild ride by a predatory payday lender. Give the Instacash feature from MoneyLion a try. You won’t pay a penny in interest or membership fees, and the funds are available for use when you need them.
