A payday loan is usually the go-to for you if you have a steady job and cannot access loans in any inheritance way. Bad credit customers are more likely to get this type of loan primarily because of its nature and accessibility.

However, you must understand the interest rates and other possible risks before you get a payday loan. At FastLoanCA, we offer payday loans for bad credit and online payday loans in California.

Payday Loan: What’s That?

A payday loan is usually small dollar loans, short-term loan that you must repay on your next payday. This loan does not typically require a credit card cash advance, so people with bad or poor credit can get it.

Some of the distinguishing characteristics of a payday loan are that it is usually payable as a lump sum on the next payday. Lenders typically do not take installments, which is part of the reason the loan sum is small.

The amount is small, with lenders giving as small as $1000 as a maximum amount. Some states exceed this amount, and others rely on the payday lender to increase the amount based on request. However, each loan has a financing charge; you must pay it along with the lump sum during repayment. This may affect the amount you pay the lender back, which may vary from lender to lender.

It is a type of secure loan because the lender has access to your checking account. You must give a note to authorize a debit from your account or write a post-dated check. The repayment period can vary depending on the state and employer. Some last only one week, while others may last a month or two.

When Is It a Good Idea to Take a Payday Loan?

Taking a payday loan is a good idea when you have poor or bad credit. Bad credit customers typically have difficulty securing loans due to their credit history. Lenders hesitate to work with such bad credit borrowers, especially if there is proof of a lack of payday loan debt or loan repayment. How much does a payday loan cost? The costs of payday loans vary depending on the state and lender.

They need a way to ensure they will get their money back k, and if you have a history of skipping payments or have a significant loan amount to repay, nobody will lend more to you. However, a payday loan is somewhat secure because the lending platform can access your account. They can make a debit once the loan is due without waiting for your authorization.

Another time it is best to take a payday loan is if you have a steady job. No lender can give you a payday loan without proof of regular income. Your checking amount must show a regular inflow of a specific amount per week, two weeks, or month to show you can pay it back. Some credit union have a minimum income amount that borrowers must meet to qualify for a payday loan before they borrow money. The amount varies, but it is a criterion that typically cuts across payday lending platforms.

Possible Risks

So, how does payday loans work? Well, remember a payday loan is short-term and may come with some risks. You must ensure you can afford to finance the loan when due to avoid hurting your credit or increasing the amount you repay. 

It is best to choose other loan options if you can because a payday loan may attract high-interest rates. Short-term loans typically attract high rates, and payday loans are no exception. Therefore, you must prepare to finance the full amount, including the charges and interest. It helps to calculate the potential lump sum at the end of the loan duration before taking it.

Additionally, ensure you need this personal loan before opting to take it. There may be other options to secure the necessary funds for a particular emergency.

Application Process

You must first select a lender and visit their official website to apply for a payday loan. Selecting a lender must be strict to ensure you avoid scams. 

It is crucial to provide all the details and documents the lender requires during the application. This helps speed up the approval time so you can get the money you need. Some lenders take 24 hours or less to deposit the funds.

Please fill out the application form, which usually takes less than five minutes, and provide all the necessary details. Submit it, and then the lender will review the application. They may contact you if there is a need for additional information, but it is not a regular occurrence. Once the application is approved, the lender will provide a contract for you to sign. The funds are deposited into your bank account within 24 hours after approval.

How to Get the Best Payday Loan

  1. Check the laws surrounding payday loans in the state and city where you live. There are usually strict rules for states that allow payday loans, while some states do not allow them.
  2. Do not exceed the amount needed for the emergency. If you already have issues paying loans back, you may want to opt for other options to secure the money. Ask your employer for a salary advance or speak with your family for financial assistance. Otherwise, you risk increasing your backlog and incurring higher rates.
  3. Ensure you thoroughly check every lender you choose. They must have a license to practice within the state and follow the regulations. A banking regulator or attorney general of the state can help you find credible lenders for payday loans legal. Check several lenders to enable you to compare their annual percentage interests (APR). The APR usually includes the interests and other fees, which may significantly increase without a clear knowledge of what they comprise.
  4. Lastly, carefully read the contract terms before signing it. Check for roll-over terms and possible fees for late payments. Some online lenders write them in fine print; in some cases, only a trained eye can tell what each term means and how it applies to your loan.


Payday loans are exceptionally useful for short-term use and provide people with instant relief shall any emergency befall them. Payday loans are usually very flexible and provide their users with the opportunity to get an advance on their next paycheck. Applying for payday loans is very simple, and FastLoanCA helps you find the best deal — rest assured, it’ll be smooth sailing thereafter!