A single-pay payday loan is a short-term personal loan that’s designed to be repaid in a single lump-sum payment. It may also be called a cash advance or traditional payday loan. The loan amounts are usually less than $500 to be used to cover a short-term financial need. This kind of loan is usually repaid when the borrower receives their next paycheck.
What is a multi-pay payday loan?
A multi-pay payday loan is designed to be repaid over multiple payments. Our installment loan and line of credit are both examples of a multi-pay payday loan. These loans may be for a couple hundred to a couple thousand dollars. With an installment loan, a borrower repays the loan in smaller payments per a defined repayment schedule. A line of credit is repaid in variable amounts. It works like a credit card where you can borrow and repay your balance.
Alternatives to taking out a payday loan
If you need to cover an emergency or essential expense, you may be considering a payday loan. Before taking out a loan, it is helpful to be aware of all your options. Here are some things to consider before taking out a payday loan.
Get financial counseling. You can find non-profit organizations who provide free financial counseling. For more information, see nfcc.org.
Borrow from family or friends. Peer lending can be complicated. However, it may be worth asking friends or family to borrow before taking out a loan.
Use a credit card. It’s not ideal to take out several credit cards at once. But if you have access to a card, it may have a lower APR.
When deciding to take out a payday loan, there are several best practices. These practices are designed to help customers stay out of a cycle of borrowing. For a successful payday loan experience, the following are recommended:
Borrow only what you need.
Take out a payday loan only for emergency expenses.
Call your lender if you are having problems repaying.
If you have problems repaying on time, the best thing you can do is call your lender. We are here to help you and we have options to assist with repayment. However, it is difficult to assist our customers without communication. Our team is available and ready to help through call, text, email, and chat. Contact us, today.
It is important to work with legitimate lenders. Illegitimate lenders may compromise your information. This can lead to scams and fraud. In order to avoid fraud, you need to ensure that a company is legitimate. Here are a few ways you can tell if you should work with a lender.