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At Kallyss, we work with payday lenders to guarantee you the best and quickest payday loan that is suitable for you. However, how does a payday loan actually work,, how do online payday loans differ from payday loan stores in the US and what is a payday lender?

If you are short of cash one month before payday and you have incurred an unexpected cost or financial emergency such as dental treatment, medical bills, emergency home repair or car repairs, then it might be worth thinking about taking out a payday loan, particularly if you know that you can pay back the money after payday the following month.

Payday loans should not be used for unnecessary purchases such as non-essential shopping or store purchases and there are a few things to consider before taking out a payday loan, no matter where you are based and no matter which state you live in.

This guide will give you some more insight into what a payday lender is and how therefore payday loans work.

What is a Payday Loan?

A payday loan is a short-term loan that helps people pay for an unexpected charge and emergency expenses that need urgent payment. Payday lenders are there to lend money fast and help get borrowers out of tricky financial emergencies for when they need money fast, to get back on your feet. These loans from payday lenders are meant to help you have the money until you next get paid so that you do not have to pay back much more than you borrowed.

On average, most people who take out these types of short term loans will borrow for just two to three weeks and Kallyss can get you a payday loan to fix short-term financial problems. There is usually a high APR on a payday loan so if you cannot pay it back at the right time it can end up costing a lot more money than you originally borrowed. You should always make sure you can afford the loan you apply for no matter why you need it.

Payday loans are offered by both high street lenders in store as well as online lenders across the USA, that can offer a wide range of short and long term loans. Kallyss connects you to the best lenders available for your circumstances, regardless of whether you are unemployed or have a bad credit history.

What is a Payday Lender?

A payday lender is the place, person or establishment that gives you the money you need for the payday loan. More Americans than ever are finding that being able to borrow money online can help get them through those tough times when they just need a little more money to get through a short period of time before their next payday.

Once you take out a payday loan with any lender, they will be your port of call the place that you will need to repay when it comes to paying your repayments for your payday loan.

Payday lenders are in practice companies that lend customers small amounts of money at higher interest rates, on the agreement that the loan will be repaid when the borrower receives their next wages. Payday loans are a form of high-cost-short-term loan, which should only be used when absolutely necessary and in financial emergencies.
Payday lenders can be traditional high street banks but these can often refuse people easily on grounds of bad credit or other previous financial statements. People who apply for payday loans may often have negative credit histories and may have been refused credit in the past. Kallyss connects you with online lenders that can provide you with the money you need within 24 hours regardless of your financial history or credit background.

How Do Payday Loans Work?

Payday loans work like most other loans, that you borrow an agreed amount of money to be repaid with interest over an agreed timeframe. However, in the case of payday type-loans, they tend to run for a shorter amount of time and will usually be repaid by the next payday of the borrower.

Payday and short term lenders will ensure the money is paid directly into your checking account. Then, when the timeframe of the loan is over, the borrower needs to have repaid the loan plus interest in full. This can be done in increments and the exact details and conditions of the loan will be established early, and at the point that you apply and then agree to the loan with the lender you borrow money from.

There are many different types of short term loans which are designed for specific purposes and for specific borrowers. Some loans are designed to lend specific amounts of money whereas others are designed for specific purposes or speed of lending.

You can borrow for longer than just until your next payday but it may be worth looking at different types of loans if you do not think you would be able to repay the full amount after 12 weeks. Other types of loans to consider may include:

Payday loans are high-cost but they are short-term and therefore are often for just small amounts that people know they can repay when they receive money from their employer at their next payday.

It is always important to be aware of how you are going to repay your loan as it can become dangerous and expensive if you do not repay your loan on time and you may find yourself damaging your credit record and even ending up in court.

What to Consider Before Applying With a Payday Lender

There are many things that it might be worth considering before applying for a payday loan with any payday lender or short term loans provider to make sure that the loan you apply for and the amount you request from your chosen lender is the right thing for you to be doing:

  • Understand your repayment structure: Knowing when and how you are going to repay your payday loan before you get it is vital; you do not want to be in a situation where you do not have the funds to repay and you are taken to court by your payday lender for lack of payment
  • Look at payday alternatives: It may be worth looking at alternatives to payday loans such as borrowing from family and friends if you need to borrow for longer than 3 months or cannot repay the loan by the time of your next payday
  • Consider paying in installments: Kallyss puts you in touch with the best lender for your circumstances and it is worth making sure you talk about the best possible repayment structure with your lender, and consider paying for longer but in smaller amounts so that you can make your repayments
  • Make sure you have a regular income: You must have a regular income of at least $800 per month to be eligible to apply for a loan with a payday lender for any amount of money
  • Local and state lending laws: There are different laws in different states across the US when it comes to payday and other forms of short term loans. Therefore, make sure payday lenders are allowed to operate in your state and if so, what the limitations on them lending are