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A safe payday loan is a short term and unsecured loan that must be repaid on an individual’s next payday.

It can be received against personal post-dated cheque which lenders cash out on a payday or is repaid when the due amount is withdrawn by a lender on due date.

Although safe payday loans have been there for a long time, they are a part of short duration lending sector hugely.

The high interest rate that is charged by the lenders of payday loans is criticized highly by consumers and government agencies.

But people, who are in sudden financial crisis, keep on opting for these loans and also do their best to repay them later on.

When you will apply for a payday loan, no credit check will take place. It will be helpful to people who have a huge number of debts and thus are unable to obtain any further credit.

So everyone who applies for a payday loan completely believes that they are in a financial crisis of short duration. Before you apply for this loan, you must seriously have a look at your financial condition and find out if any change can be made.

According to survey on payday loans, it was found that they include the following features:

  • Safe payday loans are cash loans that are offered in small amounts for a short duration with average APR 300-500% and are supposed to be paid back in 2 week time.
  • An average of 12 million Americans make use of payday loans and pay an average fee of $520 for a loan amount of $375.
  • 69 % of the people have used payday loans for covering recurring expenses.
  • 16 % used it for cases of any sudden expense.
  • The average median amount of the loan is $428.
  • The average median cost of the loan is $113
  • The average median term of the loan is 20 days
  • The average median yearly indebted days are 73.

A specific percent of the people are very much inclined for accepting the option of small cash that is offered by banks regardless that they are more costly than the offers of normal credit cards or alike products.

Paying Back

A post-dated check is signed for the total loan amount and the fee. If there is any electronic transaction then a lender will withdraw the entire amount form a borrower’s account who will pay it back in due time (next payday).

If required, the loan can get rolled to another pay time and have each and every finance charges properly included.

Loan Amount And Rate Of Interest

Safe payday loans come in small amounts starting from $100-$1000 on an average. The maximum loan amount will depend on the state and a borrower’s income.

These loans are very costly with respect to the rate of interest and it is their distinguishing feature. Since they are unsecured as well as can often be availed without any credit checks, lenders charge a huge amount for the ease and anonymity. So normally a rate of interest will range from $10-$20 depending on a state as well as a lender.

It will actually amount to 391 % APR for a loan of 14 day. The shorter will be the term of any payday loan, the more costly it will be in interest terms.


A payday loan is very popular because of its easiness as well as convenience to obtain it.

If you wish to qualify for a payday loan, you must meet some criteria that are very simple.

  • You must be aged at least 18 years
  • You must be a citizen of U.S.
  • You must be employed
  • You must have a source of income
  • You must have a valid checking account

The process of application will take few minutes and it is such a service that offers 100% approval.

A payday lender will probably not carry out hard credit checks. Thus your credit history and score will never matter in availing a payday loan.

Law Enactment

Safe payday loan are subjected to regulations of state laws in U.S. Thus every payday lending companies will be obliged to reveal the cost of loans and give the complete as well as transparent details about each and every financial charge related to a payday loan.

It includes rate of interest along with APR.

The APR must be provided in dollars and before the real agreement gets signed by a borrower as well as a lender.

Thus a payday loan can be a great thing for people who require immediate financing for a short duration of time. But having a stable cash income is essential to cover up the availed loan within a very rigid time period.