Many people come to us looking for a 1000 payday loan. Our service can help you find a payday lender who is willing to provide you with the cash you need, and do so now – in some cases less than a few hours! However, before you decided to apply for a 1000 loan payday, I would encourage you to read our information below so you:
- Understand how your payday loan for $1000 is going to work (fees, repayment structure, etc.)
- Know how to avoid the ‘payday loan debt trap’ that many people fall into
- Learn how to avoid needing to take out small loans like this in the future (I only say ‘small’ in the sense that it is small in relation to a home loan or car loan)
Understanding How 1000 Payday Loans Work
Applying for, and being accepted for a payday loan for $1000 is actually fairly quick and easy, as long as you qualify. The steps for applying are:
1) Make sure you can pay the loan back when it will come due, which is typically around two weeks.
2) Fill out the application form, which requires the following:
- Name
- Address
- Drivers License
- Phone number
- Checking account information
- Income amounts (will be verified)
- Lack of income. If you only make $1000/month you are not going to qualify for a $1000 payday loan. Typically, you need to make about 3 times the amount being borrowed – so $3K if you need $1K.
- Other current payday loans. No, a payday loan company will not do a standard credit check (i.e. a check with Experian, Equifax, or Transunion), but they will check other consumer databases to ensure you don’t currently have existing payday loans. Before you apply for another payday loan you need to pay the past loans off (which is financially smart anyways).
- State Restrictions. This one can be very frustrating for people, but each state has it’s own requirements, and you will be limited accordinly. For example, California does not allow payday loans for 1000 dollars – the max you can borrow from them is $255.
The first thing you need to understand is very simple: Payday loans are meant to be used as a SHORT-TERM funding solution. In most cases, short-term = 2 Weeks, max. In some rare cases you will find a company willing to extend you a 30 day payday loan, but that is very rare.
What Are The Rates On A $1000 Dollar Payday Loan?
The rate on your loan will vary according to the state you live in. However, typical rates will be around $17 per $1000 borrowed, due by your next paycheck. IF you annualized this rate you would see that it comes to over 450% APR (of course, that’s only if you annualized the rate, which should never be done because this is a two week loan – remember that!).
Here is a graph that represents what you would pay in fees if you were to borrow the typical $1000:
*Note: this rate is only to be used as an example. Your lender may charge a much different rate according to many factors, including the state you live in*
After You Take Out The Payday Loan
**THIS IS VERY IMPORTANT**
After you take out your loan, you need to make sure you follow through on paying it back. Studies have shown that many people don’t do this properly. Let me be clear – if you don’t pay off your loan on time you will be hurt financially (which is why we recommend to not take one out in the first place unless it’s an emergency, you have no other options, and you are 100% sure you can pay it back). Essentially, you will have to pay all the fees over again, thus doubling your interest cost in most cases (again some states limit this).
Instead, pay off your loan and start planning for the future. My suggestion is very simple:
- Start saving $25 month.
- ‘Pay’ this money to you at the beginning of each month, no matter what.
- Put this money in an account where it is separate from your other accounts, and don’t use it. I recommend using ING Direct.