Payday Loans

Life: It happens, and it isn't usually cheap. When sudden vehicle trouble, an unplanned medical expense or a hiccup with your job come up, you might find that your bank account goes down to near or below-critical levels. Sometimes individuals or families who face such situations simply need a little breathing room to make it to payday or to cover an immediate expense during an emergency. One option for dealing with such a need is to seek fast payday loans.

What is a Payday Loan

Traditionally, a payday loan is a small, short-term loan that comes due when you are next paid. These types of loans originated to help individuals cover emergency expenses or other obligations that might come up between checks when there was no money left from the previous payday. Usually:

• The amount borrowed is relatively small, typically under $500.

• The loan is paid back when you receive your next paycheck or another agreed-upon date, often within a two-week or one-month period.

• You provide a postdated check or access to your checking account so the lender can process payment for the balance plus fees and interest on the agreed-upon date.

How do Payday Loans Work?

Getting a payday loan requires just two main things: proof you have income and an active bank account. The lender needs either a post-dated check or permission to take money from your account when you get paid. Depending on your state's rules and what you earn you can borrow $100 to $1,000.

The real expense of payday loans hides in the fee structure. Instead of showing yearly rates lenders charge a set amount per $100 borrowed. A $15 fee per $100 might not sound like much but do the math and you'll find it equals a 400% APR on a two-week loan. Borrow $300 and you're paying back $345 in just 14 days.

Can't pay when the loan's due? Many lenders let you roll it over to your next payday but there's a catch. You'll pay another round of fees while still owing the first amount. Take that $300 loan with its $45 fee - roll it over and you're now paying another $45 on top bringing your total to $390. Some borrowers roll over loans multiple times and end up paying way more in fees than they borrowed in the first place.

Payday Loans - Finding the Alternative

Payday loans have been in the news a lot recently, but not all short-term loans carry the same risks. Through LendUp, you gain access to alternative payday loans provided by a network of licensed lenders.

How Do You Identify a Safe Payday Loan?

If you live in an urban or suburban area, you probably have dozens of nearby payday lenders to choose from. Even in rural areas, you can usually use the internet to find a business willing to lend you small amounts of money.

Unfortunately, not all of these payday lenders are reputable. The easiest way to tell the difference between a safe payday loan and a scam is to look for businesses that are properly licensed. All licensed payday lenders must follow strict laws passed by your state and the federal government. Since they have to follow these rules, you know you have more protections from fraud.

Most safe payday lenders will mention that they are licensed on their websites. You can always verify this information by contacting your state's attorney general. Keep in mind that an online lender licensed in one state may not have authority to lend money to people living in other states.

The benefits of using LendUp's platform include:

• No hidden fees. Our platform shows you the terms of your loan upfront. With LendUp, the terms of your loan are clear before entering into an agreement so you can make the best decision for you.
• No hard credit check. We work with many direct lenders who do not check your credit score via FICO.
• Get rewarded for good behavior. Traditional payday lending models offer you the same loan regardless of your payment history over time. Through LendUp's network, you might access benefits such as the LendUp ladder (where available), allowing you to access more money at lower rates over time as you repay your loans on time.
• No rollovers. Many payday lenders trap borrowers in a never-ending cycle of debt by forcing them to take out a new loan to pay off an old one - a practice called “rollovers”. Most of the lenders in LendUp's network do not allow rollovers. Instead, they work with customers to find a payment plan that’s best for them.
• Securing your data. LendUp's network of lenders will not sell your information to anyone. Many online payday lenders are actually lead generators who sell your information to other companies; LendUp ensures that customer data is secured inside our network.
• Quick processing time. When you apply through LendUp, you'll get an instant loan decision.
• Direct deposits. If approved through one of LendUp's lenders, the money could be deposited into your bank account in as little as one business day, depending on your bank and when you were approved.

What is a payday loan alternative?

As an alternative to traditional payday loans, LendUp through its network also offers several different types of personal loans. Traditional payday loans require you to repay the full value of the loan with your next paycheck, which could leave you in a financial tight spot. LendUp's network offers more time for repayment. The added flexibility makes it much easier for you to repay these alternative loans without failing to meet other financial obligations.

What requirements should I know about so I can apply faster?

The first step is getting a payday loan alternative is ensuring you live in a state where short-term loans are legal, and if you're seeking fast payday loans, you're in luck. If you can answer yes to all of the questions below, then you are ready to apply.

• Are you at least 18 years old?

• Do you have at least one source of regular, recurring income?

• Do you have an active checking account that can accept electronic transfers?

• Do you have a working phone number?

• Do you have a valid email address?

• Can you provide a mailing address?

• Are you not an active military member or a dependent of someone who is an active military member?

If you answered yes to all of the above, then you can take five minutes right now to apply for a short-term loan. While the lenders we work with can't approve everyone who applies, good credit is not required.

How our lenders make credit decisions

We and our lenders believe traditional credit bureaus don’t always give a complete picture of creditworthiness - particularly for borrowers with damaged or limited credit histories. Therefore, the lenders we work with consider other factors when evaluating each application, such as income sources and bank statements.

To further empower our customers, we built one of our credit education courses to specifically teach the importance of and mechanisms for correcting inaccuracies in bureau data.

How quickly can I get a loan if I’m approved?

The LendUp loan application process takes as little as five minutes for consumers online, and the lenders provide an instant decision based on a number of factors. If you are approved for a short-term loan, money can be transferred to you within a single business day. If your loan is submitted before 5 p.m. PT (weekdays), the lender may electronically transfer the funds to your bank account within one business day. See our FAQ for details.

In addition to a fast, no-hassle loan application process and transfer of funds to approved individuals, working with LendUp has other benefits. Our goal is to help our customers succeed financially, which means we work hard to provide you with the tools, like financial education, you need to manage money wisely and in keeping with your needs. In addition, we also don't have rollovers, which can lead to dangerous debt traps.

Why should you get your payday loan from LendUp's network?

Wide range of options. Through LendUp's network, you gain access to various lenders offering payday loans, installment loans, and personal loans, increasing your chances of finding the right loan for your needs.

Personalized offers. Based on the information you provide, you’ll receive loan offers that match your financial situation, allowing you to choose the best option without the need to apply multiple times.

Poor credit or a limited credit history can make it difficult to find financing from traditional sources.

LendUp's network helps by giving you access to financial educational materials.

How is LendUp different from direct payday lenders?

High rates often go hand in hand with short-term loans, and payday loans often come with some of the highest. LendUp's network is transparent, with no hidden fees. The total cost of the loan is shown upfront.

A streamlined and quick application process on LendUp's platform leads to an instant credit decision. Good credit is not a loan requirement, opening up access to those in need. All you need to get started is current contact information, including an email address and telephone number, employment or other income information, and a bank account that accepts electronic transfers.

Multiple Offers with One Application: By applying through LendUp's network, your single application reaches multiple direct lenders. This not only increases your chances of getting approved for a loan but also saves you time. Instead of applying individually to numerous lenders, you fill out one form and get offers tailored to your needs.

Frequently Asked Questions