Questions

Online Installment Loans

How can someone get an installment loan online?

In order to learn if you can receive an installment loan in your state, you will need to learn if these types of loans are available in your state. Not every state allows installments loans.

How can I tell if I am getting an online payday loan or an online installment loan?

An online payday loan, cash advance loan, or short-term loan are all the same type of loan that offer a one-time fee that is based on the amount of money you borrow. The money will need to be repaid when you receive your paycheck. These types of loans are for small amount of money usually not over $1,500.

An online installment loan allows borrowers to obtain more money from the lender with the repayments spread out over a longer amount of time. The payments will be based on the dates you receive your paycheck. These types of loans are not available in every state.

Industry FAQ

Do payday loans have unfair high interest rates?

Payday loans are unlike other lending services as they charge a flat fee and do not have accruing interest rates. They normal fee for a payday loan is around $15 for every $100 borrowed which is a set price for a short term cash loan transaction.

The Federal Truth in Lending Act requires that all financial companies must disclose their loan fees as annual percentage rates referred to normally as APR. To stay in accordance with the requirements, Paydloans.com reports the APR of a payday loan, which is the amount of money the consumer, would pay in fees if they renewed their payday loan every 2 weeks for a year. On the other hand, the loan term on average is only 2 to 4 weeks. APR is a better way to measure the fees that are associated with any loan that lasts for one year such as car loan or mortgage. When you compare the APR of short term cash advance loans or payday loans to bounced checks, late payments, bank overdrafts, and reconnecting your utilities, the cost is considerably lower.

Why do consumers use payday loan services instead of using a bank?

The main reason consumers turn to payday loans is that most banks do not provide short-term small money amount loans. The average amount of a payday loan is $350, which is quite a bit lower than what a bank will loan.

Other reasons that consumers turn to payday loans over banks, credit unions, or other lending companies is due to past experiences where they were charged other fees that were not disclosed at the time of the application and obtaining their loan.

Our payday loans and fees are transparent, therefore before obtaining a payday or cash advance you will know exactly what fees you will need to pay.

Will a payday loan put me into a cycle of debt?

Competitors of payday loans often use “cycle of debt” to make consumers wary of small term loan companies. At PaydLoans.com, we work with our customers to try to help ensure this does not happen as it will be bad business for us when we have customers that are unable to repay their loans.

At Paydloans.com, if a borrower is unable to pay back their payday on the date agreed upon, we work with them to help them find a solution to repay their loan.

What are the regulations on payday loan lenders?

Cash advance and payday loan companies are extremely regulated on both state and federal levels in order to protect both the consumer and the lending companies.

The regulations and laws are as follows:

State regulations – State laws limit the amount a person can borrow from payday or cash advance lenders, set maximum fees, require certain disclosures, and limit the renew of a loan. In the majority of states, the law stipulates that a customer can cancel the loan before the end of the business day on the day for which they applied.

Federal Regulation – The federal government has several laws as well as agencies that regulate lending companies and to protect customers, which includes the Consumer Financial Protection Bureau (CFPB).

Fair Debt Collection Practices Act (FDCPA) – Paydloans.com works with collection agencies that use professional, legal, and are not aggressive in the collection practices.

Federal Truth in Lending Act (TILA) – Federal law stipulates that all lenders must define their main terms when it comes to the lending agreements as well as disclose all charges and fees so consumers are able to compare the costs associated with all their credit options.

Equal Credit Opportunity Act (ECOA) – We do not discriminate based on national origin, religion, race, sex, color, marital status, or if the consumer receives public assistance.

Fair Credit Reporting Act (FCRA) – We strictly adhere to all policies that regulate dissemination, collection, and the use of all information we receive from consumers, which includes their credit information.

Gramm-Leach Bliley Act (GLB Act) – This act was created to protect personal financial information of consumers that are held by any financial company. The act does not allow sharing of personal information.

John Warner National Defense Authorization Act – This act restricts the charges on a small loan of 91 days or less to 36% Military Annual Percentage Rate. We do not offer military loans.

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