What is a Payday Loan?

A payday loan is a small amount of money loaned over a short period of time, usually less than a month. The collateral for the loan, and the payback method, is the borrower’s paycheck.

Payday loans are usually at extremely high interest rates. This is for two reasons. First, a payday loan is over a very short period of time. The lender generally demands a much higher “cost” for the borrowing period since it is short. Second, the people who have a need for payday loans are generally considered high credit risks. This means much higher rates. Most states that allow payday loans have state regulations that cap the amount of interest and fees lenders can charge for payday loans. Some states do not allow them at all, saying that payday loans are predatory.

There are very few requirements to get a payday loan. They are made as accessible as possible for the people who need them.

  • The borrower must be at least 18 years old with valid ID
  • They must have proof of income — paystubs from a job
  • They must have an active checking account – this is where the loan will be repaid
  • They must have a reliable method of contact such as a cell phone number

A payday loan does not require a credit check, and payday loans are not reported to any credit bureaus. Because there is no hard credit check required, payday loans are often a good option for people with no credit or bad credit. The downside, of course, is that paying back a payday loan does not help to create a payment history or raise your credit score.

Paying back a payday loan is generally as seamless as possible. Usually, the lender sets up the loan at the beginning to make repayment in full by automatic withdrawal from the borrower’s checking account. The old-fashioned way to do this was to write a post-dated check for the full amount, dated for the repayment date. Now that loans are increasingly digital, this process is done by ACH authorization. When the lender issues the money, the borrower signs a form allowing the lender to electronically withdraw the total repayment amount on the repayment date.

In the event that the borrower cannot repay the payday loan on the due date, the loan amount plus fees can be rolled into a new payday loan at the same interest rate. Due to the high interest rate on payday loans, this can quickly lead to interest and fees becoming more than the original amount of the loan itself.

Let’s look at an example.

Suppose a payday loan for $250 for 2 weeks. The interest rate is 20%, so the total repayment amount will be $300. If the loan is paid off at the original date, the borrower will pay $300. However, if the loan is not repaid and a new payday loan is issued for $300, the repayment amount will be $360. Two more weeks, and the debt is $432. One more time, and less than two months after the original loan date, the debtor owes more than twice the original amount of the loan.

A payday loan is often the last option for people who need money, but have no other way of getting it. If you choose to get a payday loan, make sure that you will have the means to pay back your loan on the agreed date, as interest and fees can quickly compound to a point where the loan becomes nearly impossible to pay off. Choose a reputable lender, either online or in person. Make sure that all the terms and conditions are disclosed to you – this is your right under the law.

Can I get a payday loan online in San Diego?

If you do not have access to a payday loan business near you, you can also obtain a payday loan online. The requirements for an online payday loan are exactly the same as a payday loan from a brick-and-mortar business – an ID, proof of income, an active checking account, and a reliable means of contact. The one difference between an online payday loan application and an in-person application may be a residency requirement. Since payday loans are illegal in some states, the online lender may be required to verify your state of residence through your ID or an additional form of documentation.

Most online payday loans will give you an instant credit decision through an online application. Once approved, the funds will be immediately deposited into your account. Depending on the lender and your bank’s policies, you may be able to access the money immediately or the next business day. Because of this slight delay, if your need for cash is very urgent, it may be better to visit an in-person location. However, if you can wait up to 24 hours for your money, an online payday loan is a convenient option that can meet your need.

Payday Loans Near Me in San Diego, CA

To find a payday loan near you (nearby), start with direct lenders in your town or general area. If you cannot find something that meets your needs, online lenders in your state can help you.

Top 10 locations of direct lenders where to get payday loans near me in San Diego:

Company Name

Address / Area / ZIP Phone / Fax
Oportun 517 E San Ysidro Blvd, San Diego, CA 92173 +16196314829
Oportun 1490 S 43rd St, San Diego, CA 92113 +18884072998
Speedy Cash 6686 El Cajon Blvd, San Diego, CA 92115 +16194641731
Payday Money Centers 4090 El Cajon Blvd, San Diego, CA 92105 +16195636543
Advance America 3145 El Cajon Blvd, San Diego, CA 92104 +16196401799
Moneytree 2702 El Cajon Blvd, San Diego, CA 92104 +16195636669
Checkmate 9211 Clairemont Mesa Blvd #102, 92123 +18582771000
ACE Cash Express 4874 Genesee Ave, San Diego, CA 92117 +18582735709
The Check Cashing Place 1255 Imperial Ave, San Diego, CA 92101 +16192322274
USA Check Center 1722 Euclid Ave, San Diego, CA 92105 +16192642805

Or find more stores on Google Maps

There are 12 states, plus the District of Columbia, in the United States where payday loans are completely illegal.

  • Arizona
  • Arkansas
  • Connecticut
  • Georgia
  • Maryland
  • Massachusetts
  • New Jersey
  • New York
  • North Carolina
  • Pennsylvania
  • Vermont
  • West Virginia

If you live in one of these states but need fast cash or a short-term loan, you still may be able to find other financing options. Some states that don’t allow payday loans do allow other short-term loans or credit solutions that have a similar result, but different loan terms. You may need additional paperwork or have different requirements to get a short-term loan from a lender or credit union.

San Diego Emergency Payday Loans

Payday loans are often used as a financial solution to emergencies. Most payday loans are good for quick cash; almost all of them have an application that takes only a few minutes to fill out, instant credit decisions, and same-day cash. This can be a good option if you have a bill that absolutely must be paid or some other desperate situation.

If you need an emergency payday loan, find an online or in-person payday loan business that can give you same-day cash. This is important because some online payday loan services have a turnaround time of one business day before you can access your money. Find the payday loan that fits your needs.

However, please be aware that emergency payday loans are only a short-term solution. If you find yourself looking for a payday loan every time you reach a financial emergency or need fast cash, this can be indicative of a larger problem in your financial life. Most states that allow payday loans have industry regulations, including how often consumers can get a payday loan. If you already have a payday loan, whether it is active or whether it was recently paid off, you may be required to go through a “credit cool-down period” or a credit counseling program before you can take out another loan. While this may seem like an inconvenience, it is for consumers’ safety.

I need $1,000, quick!

With a payday loan, speed is not an issue. If you qualify for a $1,000 payday loan, you will be able to get the money the same day.

The amount you can get in a payday loan depends on several factors. The most important factor is your paycheck. If you make enough money to qualify for a $ 1,000 payday loan, you will be able to borrow that amount of money. However, depending on your income and other outstanding debts, you may not be eligible for a $1000 loan. A lender can help you to determine how large of a payday loan you can take.

Payday loan amounts may also be limited by your state’s regulations. In Alabama and Missouri, for example, you can only borrow up to $500 in total payday loans. Other states, like California and Louisiana, have even lower limits. California’s limit is $300 and Louisiana’s is $350.

Other states, like Ohio and Virginia, do have limits over $1,000, potentially allowing you to obtain a payday loan for $1,000 in those states.

Nevada is the only state where payday loan limits are income-based. In Nevada, the payday loan cannot exceed 25% of your monthly income. If you had a $4,000 per month income in Nevada, you would be able to get a payday loan for $1,000.

Same Day Approval

Almost all payday loans are same day approval loans. Since the requirements for payday loans are so few, it is easy to fill out a quick application, show your ID and a paystub, and receive your cash.

It is easy to get same day approval because payday loans do not require a credit check. Conducting a credit check can take days or weeks for a loan approval decision. Since a payday loan has no such requirement, it can be approved and processed much more quickly.

I need $500 cash in San Diego, CA, USA!

Most payday loans can go up to $500. Since payday loans are based on your income and other debt, the amount you can borrow is specific to your situation. If you have no other outstanding short-term loans, and have an income that can support a $500 repayment plus fees, you will qualify for a $500 loan.

Most states that allow payday loans have loan limits, but most of them are $500 or above. There are only a few states where you would not be able to get $500 in a payday loan.

Installment Loans (up to $5,000)

Generally, payday loans are not installment loans. They are small enough that they are generally paid back in one lump sum through ACH on the due date. However, if you need a larger amount of money, it is possible to get installment loans for small amounts of money.

The easiest way to do this is to get a personal loan from a local credit union. If your checking account is at a credit union, you may qualify for a personal loan. This is a bit more complicated than a payday loan – it may require a credit check or other paperwork.

If you are unable to get a payday loan but have a credit card with a high enough limit, you may also be able to use the card’s cash back feature to get cash quickly. There are a couple benefits to doing this. First, the full amount will not all be due back at once as in a typical payday loan. It will be added to your credit card balance and you can make minimum payments on it. The other benefit to this is that if you pay it back over time, you will end up paying much less in interest than a typical payday loan. On paper, the interest rates may look similar – 20-25% is common – but the time period is very different. With a payday loan your effective APR may be twice the stated interest rate on the loan, and the consequences of not repaying the entire amount will be much higher. Choosing to structure your loan as an installment loan on a credit card with payments can be a way to avoid a huge financial hit.

Fast Short-Term Loans in San Diego CA

Emergencies happen. And when they do, you often need cash fast. Economists estimate that close to 40% of Americans do not have the cash to meet an unexpected $400 expense.

When you’re already short on money and barely paying the bills, even the thought of an unexpected expense or emergency can be enough to make you panic. While you may not like the idea of going into debt to meet an unexpected expense, you should still be aware the option is there. A fast short-term loan can be a way to cover bills or emergencies and get you back on your feet at the next payday.

San Diego Cash Advance for Bad Credit

If you have bad credit, it can be tricky to find loans or lines of credit that will accept you as a customer. However, you still have a few options. If you have an existing credit card with enough of a credit limit, you may be able to get some cash back from this card. If your credit score is low but not extremely poor, you also may be able to negotiate with the credit company to get a higher credit limit for the card. This is especially possible if you have a long credit history with that specific card. The advantage of doing this is that you will pay less in interest and fees over time than you would with a payday loan.

Another way to get a cash advance when you have bad credit is to use a payday loan. These short-term loans are usually paid back in a month or less, although it is possible to get payday loans with longer payback periods. This can be a good option if you know you will have the money to pay back the loan in a few weeks, and only need immediate cash to get out of a pinch. This is the most accessible option for people with bad credit, as a payday loan does not require any form of credit check. If you have a very low credit score, or even no credit history at all, you will still be able to get a payday loan. The other advantage of a payday loan is the speed. Payday loans are same-day or next-day loans, allowing you to access the money you need when you need it. The only drawback is that not every state allows payday loans, and where they are legal, they are highly regulated. If you live in one of the 12 states where payday loans are illegal, or if your state limits the borrowing amount to less than what you need, you may need to find another option to finance your needs.

No Fax Payday Advances (San Diego, CA)

A “faxless” payday loan means a loan with no paperwork or documentation required. Usually, the only information you need to submit is a brief online questionnaire. You still have to list the same basic information online – name, contact information, and proof of employment – but there is no physical paperwork and no in-person contact. “No-fax” may seem like an outdated term in this day and age, where very little is faxed, but that used to be the preferred method of sending paperwork remotely. In an online payday loan application nowadays, you may be asked to upload a picture of your ID or paystubs along with your application.

The advantage to a remote, paperless loan application is no travel. This could be very valuable if, for instance, your car was broken and you had no transportation. Because everything is done digitally, there is another advantage – social distancing. As we approach another cold and flu season, it’s especially important to watch your health. You don’t need to add a health emergency on top of your other problems!

What if I need a longer loan term?

Most payday loans are very short term – two to four weeks. However, some states allow longer payday loan periods – even up to a year. Some states allow short-term loans with terms of 1, 3, 6, 9, or 12 months. These loans are usually paid back in installments rather than one lump sum. They are still at the high interest rates of a payday loan, but not as high as on a very short term loan.

You will have to check with your individual lender for your state’s requirements. A reputable lender will be licensed in your state, and will disclose your rights under the law before the loan is completed. This person will be able to tell you how long of a loan term you can have within the limits of a payday loan.

24-Hour Cash Advance Loans

Need cash fast? When it comes to a tight spot, you need money sooner rather than later. You don’t have time to gather documents, wait for credit approvals, and meet with lenders. Short-term loans with 24-hour turnaround times offer some quick relief for your financial pinches.

Payday and Title Loans

So, what is the difference between a payday loan and a title loan?

Both are ways to get cash fast.

Neither requires a credit score.

The main difference is the collateral. A payday loan uses your future steady income as collateral for the loan. A title loan uses the title on your car to secure the loan. If you have a paid off car, this can be a solution that can get you more money, over a longer period of time, than a payday loan could. However, if you don’t hold the title to your car, a title loan will not be an option for you.

Another difference between a title loan and a payday loan is the requirements. A payday loan requires you to have a checking account from which the loan can be automatically repaid. A title loan, on the other hand, has no such requirement. You can leave a title loan office with cash, or check, in hand.

Both loan methods are designed for people in great need of cash. You will have to choose the method that fits your circumstances.

No one wants to be in circumstances that require a short-term loan or 24-hour fast cash. However, the reason these services exist is to meet people where they are. If you find yourself in a tight place, a financial emergency, or just need cash quick, you can get the money you need.

References:

  1. https://www.consumerfinance.gov/ask-cfpb/what-do-i-need-to-qualify-for-a-payday-loan-en-1593/
  2. https://www.ncsl.org/financial-services/payday-lending-state-statutes
  3. https://fortune.com/2023/05/23/inflation-economy-consumer-finances-americans-cant-cover-emergency-expense-federal-reserve/