At one time or another, most people know what it’s like to run out of money and not have enough to compensate for emergencies. Living paycheck to paycheck is a reality for many people, no matter how hard they work; that is where payday loans come in.
Today, payday loans are easier to apply for than ever in South Dakota, and can even be done online. All you will need to qualify for a loan is a job, and many don’t even run your credit, but it is important to make sure that you use state-approved businesses.
Now that you know you can apply for a loan online, it’s time to choose your best option. Below, we have listed the top 10 payday loans in South Dakota.
Table of Contents
- Payday Loan Laws In South Dakota
- 5 Best South Dakota Online Payday Loans
- How is a Payday Loan Different?
- Payday Loans: How do they work?
- Average Cost of a Payday Loan
- What about Your Credit Rating?
- What Happens if you Don’t Make Payments?
- What is the Difference Between a Payday Loan and an Installment Loan?
- Can I get a Payday Loan from Another State?
- What do I need to apply for a Payday Loan?
- What is Rolling Over Your Payday Loan
- Payday Loan Alternatives
- Bottom Line
Payday Loan Laws In South Dakota
Payday loan laws vary from state to state, so it’s important to make sure that you check up on the laws in your particular state of South Dakota. Lenders must have a license to operate, otherwise, they will be penalized by the state and should not be trusted.
Most licensed lenders in South Dakota will follow the following guidelines:
- Maximum amount: $500
- Loan term: varies – usually next payday
- Maximum APR: 36%
- Finance charge: a payday loan (14 days) of $100 costs $1.39
- Collection fees: vary
There is no specified number of payday loans you can have out at once, but remember that they will most likely all be due at the same time. Budget what you can afford, and only borrow the amount that you need.
5 Best South Dakota Online Payday Loans
1. PersonalLoans.com
Personal Loans is a lending company that offers payday loans, as well as larger personal loans, between $500 – $35,000. You will request an amount, based on what you can pay back on your next pay date, so you will want to focus on a lower amount; just enough to get you through your rough patch.
If you have poor credit, obtaining smaller loans that you pay back right away, will help build up your credit rating. Personal Loans find lenders who will agree to lend money to people with a low credit rating.
2. Zippy Loans
For those in South Dakota who are unable to put aside money for emergency use, Zippy Loans is there. You can apply for a loan through Zippy Loans online, and they will set you up with a lender who can give you the money you need, until your next payday.
Zippy Loans is not a lender or a bank, but they will help you find a lending institution that will put up the funds for up to two weeks. The typical cost is $10 – $30 for every $100 that you borrow, so a loan of $500 would need to be paid back at an additional cost of $50 – $150, plus the amount you borrowed.
3. B3 Cash Solutions
B3 Cash Solutions understands that you may need cash made available to you before your next payday. They have an easy application process online, where you can apply for a loan up to $1500 (keep in mind for South Dakota, a payday advance can be a maximum of $500).
There are no guarantees, but plenty of times when your expenses are far more than what you bring in, so B3 Cash Solutions will be able to help you get the cash you need to get through these unforeseen and often unavoidable times.
Payday loans are fast and offer credit to those with poor to bad credit in most circumstances. With a great team of professions who are willing and able to help, B3 Cash Solutions is only a click away, as well as financial help.
4. Cash Net USA
Cash Net USA has fast approval for their customers, which includes a same-day deposit. Their application process is quick and easy and can be done online for your convenience.
Even if you don’t have a perfect credit score, no need to worry. Cash Net USA considers your financial situation and tries its best to accommodate as many clients as possible. They believe in helping their customers gain financial independence and know that sometimes you need a hand.
Their customers have given them a 4.6-star rating and they are state-approved.
5. Cash Advance USA
One of our top payday loan lenders in South Dakota is Cash Advance USA. Customers can apply online and find out if they are accepted within five minutes. Even if you have bad credit, they are willing to look at your application and likely approve your application.
Cash Advance USA makes it easy to repay the loan with a lump-sum payment or installments. But remember that while this is convenient, it will add an extra cost. They do not complete a credit check and are a trusted lender and well-reviewed by their clients.
How is a Payday Loan Different?
Now that you know where to get a payday loan, let’s make sure that you understand what they are. Payday loans are a quick way to arrange money when you run into an emergency and need cash fast and are unable to wait until the next payday. But how is getting a payday loan different from other loans?
Firstly, a payday loan is for a lower amount than most other loans, beginning at $50 and going up to around $1000. Most people will end up borrowing $300 – $500 because that is the amount that they can repay. Each state has different laws from one another and each state’s maximum amount varies.
Unlike most other loans, payday loans are expensive to pay back, with a high-interest rate that varies between 100% – 700% APR (Annual Percentage Rate). Since payday loans are so expensive to pay back, often the high cost of borrowing the money will land a person a little short on cash the following payday, and the cycle continues.
One of the most appealing aspects of a payday loan is that even those with a bad credit rating are likely to be approved for one.
Payday Loans: How do they work?
There is rarely a need for the payday loan company to do a credit check when you apply to borrow funds, but that doesn’t mean that you are automatically approved. Approval or decline depends on your proof of income, identification process, and proof of chequing account. Once you have submitted all of your personal information, the application will be quickly approved or denied.
If you are approved for the loan, you will be asked to give the lender authorization to withdraw the money from your bank account on your next pay period. The lender will agree to lend an amount they see fit, and by the restrictions of each state; in this case, South Dakota.
Average Cost of a Payday Loan
The amount charged to take out a payday loan is significant; be sure to consider whether it is worth it to pay $45 – $300 on top of the money that you will be borrowing. Since the loan is to be paid on your next pay period in a lump sum, you will be losing a chunk of your paycheck. Be careful not to run into the need to get another loan right away.
Depending on personal circumstances and the size of the loan, the cost of borrowing is on average, $15 for every $100 but can go all the way up to $35 per $100. Carefully read the amount that they are charging to ensure you can pay it back, and remember, the higher the cost, the less likely the company is to be a reliable one.
Of course, a payday loan is a great option if you are stuck and have nowhere else to turn, but be careful not to find yourself in a borrowing loop.
What about Your Credit Rating?
The fact that, more often than not, your credit rating is not checked when you apply for a payday loan, makes it an appealing form of a loan. If you pay back your loan on the predetermined date, then a payday loan has little to no effect on your credit rating.
With a payday loan, it is best to repay it all at once instead of making smaller payments. While some companies will try to entice you by saying this will help build your credit rating, the fact is that it will end up costing you more in the long run.
What Happens if you Don’t Make Payments?
If a customer does not comply with the agreement set up with their payday loan provider, the company will likely try to help the customer by breaking the payments into smaller chunks.
If the loan still isn’t paid, the lender will send it to a collection agency, which will affect your credit rating. If the borrower still doesn’t pay the loan back, it will likely be sent to court and be a lot more hassle and detrimental to the person’s credit rating.
What is the Difference Between a Payday Loan and an Installment Loan?
A payday loan is for a small amount with a high-interest rate and is usually paid back in one lump sum. An installment loan is for someone who needs a larger sum of money, usually in the thousands, which is often too much to pay back at once, so the loan is paid back in installments.
Installment loans have a predetermined date that payments are made, and while the interest rate is still quite high, it isn’t as high as with a payday loan. Like a payday loan, there is usually no credit check or collateral (such as a vehicle) to apply.
Each state will have its own set of regulations regarding installment loans, although the regulations will not be as strict as with a payday loan. Make sure you check over any additional fees that are charged with an installment loan, as these will be in addition to the APR fees.
Can I get a Payday Loan from Another State?
Since every state has its own set of regulations regarding payday loans, you are not able to get a payday loan from a lender in another state than the one in which you reside. In Georgia, payday loans are forbidden, while in most states, there are few restrictions.
Each payday lender will have a list of which States they operate in so that you don’t have to wonder.
What do I need to apply for a Payday Loan?
While there are few requirements for a payday loan, there are some common necessities that most lenders require:
- Be 18 years or older
- Currently employed for no less than 3 months
- Have a monthly income of at least $1500
- Have a phone or access to a phone
- Must have an active checking account for 30 days or more
When applying online, these requirements may vary, but they are the same in most cases, with the addition of a social insurance number required for online loans.
The interest rate varies by state, not based on your credit rating. If you apply for a payday loan in person, you will get your money immediately; if you apply online, it usually takes up to 24 hours.
What is Rolling Over Your Payday Loan
When someone can not repay their payday loan on the agreed date, they do what is known as rolling over. Rolling over is when you pay back the fee (say $45) and repay the loan the following pay period, but with an additional fee of $45 attached, making a $300 loan $390.
If you doubt that you will be able to pay the money back at once, arrange to make smaller payments to the lender so that you do not fall behind. While this may cost more over time, it will spare you from further arrangements or falling behind on your payments.
Payday Loan Alternatives
If you require money, a payday loan is an option, but if you can get a loan elsewhere, you should try to utilize a less expensive route first. Some options may include:
Peer-to-Peer
Peer-to-peer lending lets you borrow money directly from other people, cutting out the middleman. The lenders will earn money through interest rates, and borrowers can get a much more manageable interest rate. Peer-to-peer is an excellent option for all parties involved.
Advance on your Paycheck
Some employers will allow you to take an advance on your paycheck, and take the amount owing right out of your earnings. An advance from work is a good option because it allows you to use your own money and there is no interest fee.
Credit Card with 0% Interest
With a 0% interest credit card, you can use it for emergencies without worrying about interest piling up for a while. As with all credit cards, you need to pay it back, and applying for a new card will show on your credit report.
Bottom Line
While a payday loan is a good option as a last resort, it is always wise, no matter what your credit rating, to go through your options thoroughly before applying for a loan. Understand your rights, what a fair interest rate is, and learn the legitimacy of the lender.
Everyone comes by hard times, and there is no shame in needing help. The most important thing is to make sure you do not keep repeating the trend of borrowing money each paycheck. Choose your lender wisely, and keep in mind that you ultimately choose the loan you decide to take.