Best Short Term Loans 2018

Rank
Company
Loan Features
Amount
Our Scoreinfo
More Info
1
Cash Advance
APR Range: Up to 1,564%
Loan Term: 7 days – 12 months
Approval Time: 3 - 5 Minutes
Funding Time: 1 business day
$100 - $1,000
Cash Advance
our scoreinfo
Amount: $100 - $1,000
APR Range: Up to 1,564%
Approval Time: 3 - 5 Minutes
Funding Time: 1 business day
2
ACE Cash Express
APR Range: 65% - 1,400%
Loan Term: 14 Days
Approval Time: Instant
Funding Time: 1 - 2 Days
$200 - $2,500
ACE Cash Express
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Amount: $200 - $2,500
APR Range: 65% - 1,400%
Approval Time: Instant
Funding Time: 1 - 2 Days
3
Blue Trust Loans
APR Range: 471% - 841.5%
Loan Term: 6 Months
Approval Time: 60 Minutes
Funding Time: Next Day
$100 - $1,250
Blue Trust Loans
our scoreinfo
Amount: $100 - $1,250
APR Range: 471% - 841.5%
Approval Time: 60 Minutes
Funding Time: Next Day

What Is A Payday Loan?

A payday loan is a short-term loan designed to be paid back to the lender in a short amount of time, usually by the borrower's next paycheck. Payday loans are designed to allow the borrower access to funds for emergency purposes, such as getting a car repaired or to handle day-to-day expenses due to a medical bill. The exact amount allowed to be borrowed varies, usually between $100 to $1,000, and the funds are issued and collected through either a loan store or online loan service.

Payday loans are known primarily for two things: the simple application requirements and high interest rates.

Payday Lender Types: Brick and Mortar Lender versus Online Lender

There are two major types of payday lenders:

- Brick and Mortar Lender
With brick and mortar payday lenders, the borrower submits a post-dated check made out to the lenders during the application process. Upon approval, the lender will deposit the check on the designated repayment date. In exchange, the lender distributes cash to the borrower.

- Online Lender
Online lenders issue and collect funds electronically through a borrower's bank accounts, depositing and withdrawing funds according to the agreed-upon terms of the payday loan. This process occurs through the Automated Clearing House system, or ACH.

Both lenders operate with similar loan terms: a borrower receives funds and agrees to pay them back in a short amount of time. They both also provide varying levels of comfort and accessibility to the potential borrower: online lenders may be more convenient, but a physical building can be more reassuring.

What Do You Need To Be Approved?

The requirements to apply for a payday loan are very simple. A potential borrower must be:

- 18 years of age
- Have an after-tax monthly income of at least $1,000
- A valid checking account

By receiving a payday loan, the borrower becomes legally responsible for the financial transactions that occur. A guarantee of payback to the lender must be provided.

The Pros

There are many attractive qualities about payday loans, primarily in the simplicity of the borrowing terms. To apply and be approved for a payday loan can take less than half an hour. There is no credit check requirement for the borrower, the repayment terms are straightforward, and the loans do not carry the stress of additional fines or penalties associated with banks and credit cards. This means no additional charges for bouncing a check, overdrawing on a bank account, or going over a credit card limit. And by using payday loans to pay bills on time, a borrower can also protect their credit rating. When used responsibly, a payday loan can solve short-term financial problems.

The Cons

Oddly enough, the primary concerns about using payday loans are directly related to things that make them attractive. Because payday loans have neither security nor credit history, every borrower presents a high risk to the lender. To offset this risk, the interest rate for payday loans can be very high, in part to cover the difference for the loans not paid back. The payday loan industry also lacks consistent regulation, making rule enforcement and business practice transparency uneven. And because of the emergency nature of a payday loan, some lenders won't hesitate to take advantage of a borrower's situation by charging higher rates.

The largest danger of using payday loans is the potential for a borrower to fall into a debt cycle. Despite the simple requirements, a potential borrower should remember a payday loan is a very expensive form of borrowing and have a plan to pay off the loan as quickly as they can. If the borrower fails to pay off the loan at the next payday, they may be forced to take out further payday loans to pay off the others. This debt cycle can turn the original loan amount into a huge debt in a very short time.

Borrow Responsibly and Pay It Back Quickly

The best use of a payday loan should be as an emergency funding line when all other funding options are not available, the simple requirements underscored by the high interest rates and short repayment periods. If a borrower needs money for a week's vacation, they should consider a short-time job. If a borrower needs to pay the power bill but can't until the next paycheck, they might consider a payday loan.

However, the borrower needs to assess their financial situation and learn all they can about how payday loans work before applying. How much does a borrower need? Which lender has the best loan offers? How long is the repayment schedule? Can the loan be repaid quickly? A borrower should also consider multiple lenders before applying for a payday loan and, upon receiving the loan, work to pay it back quickly so as to avoid the debt cycle.

PaydaySpotter.com is an independent comparison service provider. Reasonable efforts have been made to maintain accurate information throughout our website; however, all information is presented without warranty or guarantee. PaydaySpotter.com may receive compensation from our partners, including, but not limited to, clicking on links and lead generation.
Our score is based off of
loan features, BBB
ratings, and complaint
data for this company.
Our score is based off of
loan features, BBB
ratings, and complaint
data for this company.