Here's the situation: You need to quickly come up with a couple of hundred dollars to pay some bills, but payday is still a week away, and it can't wait until then. What do you do?
If you don't have a rich uncle that can lend you a few bucks, your only immediate option might be a payday loan. Online payday lenders usually offer same-day approval, and the money is deposited in your bank account the next day.
I've come to the point of screaming against payday loans on the blog and prefer peer-to-peer lenders for even bad credit loans, but sometimes you don't have an option.
If your credit score is below 520 FICO, even some of the lenders on our Ultimate List of P2P Sites might be unable to help you.
When that happens, I can only recommend one online payday lender.
CashNetUSA online payday loans may be your last, best choice for bad credit loans
CashNetUSA is one of the largest online cash advance lenders and a good option when nobody else will lend you money. Payday loans are notorious for charging high-interest rates. With add-on fees that can make a $600 loan quickly balloon in size if you don't immediately pay it off. Still, CashNetUSA seems to be one of the few to charge affordable rates.
Pros of CashNetUSA
- They make instant lending decisions- within minutes, not hours or days
- Next day money deposit
- Don't have to drive to a local payday lender
- Interest rates and fees start at 260% APR
- Not available in every state
What is CashNetUSA?
CashNetUSA is a legit online-only payday loan lender. They currently offer loans in 38 states if you're 18 years old and have worked with your current employer for at least one month.
You might be familiar with your local brick-and-mortar payday lenders like Check Advance and Advance America. CashNetUSA can be a more convenient option because you can apply online from your home in five minutes or less. They deposit the money in your bank account the next business day.
Where interest rates at most payday lenders approach 500% when you add up all the fees, rates at CashNetUSA are about half as much.
Despite being super convenient, should you apply for a CashNetUSA loan?
Who Can Make Use of CashNetUSA?
Suppose you're facing financial problems that have struck you so suddenly and unexpectedly. In that case, CashNetUSA must be right in time. When you are short of money for emergency expenses, CashNetUSA can provide you with a short-term loan. As per the loaner's experience, it's far better than getting a title loan because title loans require collateral like your car or any property title. It can be relatively scary because, of course, just the thought of it creeps you out. It means the lender can repossess your property if you can't pay the amount at a given time frame before the loan agreement.
Also, it's not that hard to apply. As long as you are a U.S. citizen or a permanent resident with a clear source of income and a checking account, you can apply for it. The best part is that CashNetUSA can give you the amount of funds you're borrowing on that same day of application if they can verify your financial background. So it would be better to prepare all requirements beforehand.
CashNetUSA Flex Loan
The only loan offered by CashNetUSA is the Flex Loan, which is just a fancy name for a payday loan.
Here are the basic requirements for a Flex Loan:
- 18 years old
- Must be a U.S. citizen or permanent resident
- Verifiable, steady income stream
- Active checking account
How much you can borrow depends on your state's payday loan regulations, but here are a few general rules of thumb:
- Borrow up to $1,500
- You must repay the loan within 8 to 35 days, depending on your next pay date.
- Interest rates start at 260% APR depending on the amount your borrow and how long it takes to pay off your loan
Each state has different borrowing limits, so you'll need to check the CashNetUSA website to verify your potential loan terms.
The next day's cutoff to receive your loan is an approved application by 6 p.m.
Otherwise, the lender will deposit them two business days from today. So if today is Monday, your application must be approved by 6 p.m. for the money to appear in your bank account on Tuesday.
The above picture lists the rates and terms for a CashNetUSA Flex Loan if you live in Tennessee. Your loan terms depend on your credit score and state of residence.
Can CashNetUSA Garnish My Wages?
One of the significant downsides of payday loans is their aggressive repayment schedule. CashNetUSA can only garnish your wages with a court order. However, you should still try to repay your Flex Loan as quickly as possible to eliminate the monthly payment and have more disposable income sooner.
Every day, your remaining balance accrues daily interest and a customary fee that roughly amounts to 0.75%. If you have an $800 balance initially, you tack on $6 in interest and fees each day. Any payment you make gets applied to these fees first, and any remaining amount goes toward the principal.
Paying the interest first is typical of most payday loans, even the ones that charge an upfront fee. The only difference is that traditional payday lenders calculate all your fees upfront for the two-week repayment terms and charge for it all at once. By calculating your fees daily, CashNetUSA allows you to pay off the loan sooner and save.
Your minimum monthly payment with CashNetUSA is at least $35 or the sum of these three factors:
- 5% of your outstanding principal balance
- Accrued interest
- Customary fee
CashNetUSA requires biweekly payments—every 14 days—so your initial payment on an $800 loan will be $124 every two weeks. Your account remains in good standing as long as you keep making the minimum payment. Still, your cumulative interest and fees paid are to be as much or more than the original amount borrowed.
Keeping your account in good standing is another benefit of the online payday lender versus traditional payday loans. Your loan turns over every two weeks instead of taking out another loan to pay off the last.
While a single loan might be affordable, you can run out of money quickly if you need to apply for more payday loans to pay the bills. Eventually, these high-interest rates become too much, and that's why these types of loans are about the worst kind of debt you can use.
One complaint I've heard is scammers impersonating CashNetUSA lenders and calling you, stating you qualify for a loan, and asking for your personal information. All correspondence should take place online between you and CashNetUSA. Do not give any information over the phone. Use the link here to go directly to the official CashNetUSA website to apply for your loan.
Should You Apply for a Payday Loan from CashNetUSA?
Whether you should use CashNetUSA depends on how badly you need the money. The good news is that the online payday lender accepts applications from applicants with abysmal credit. The bad news is you should be prepared to fork over some extra money for fees that make your APR at least 200% once you factor in the fees and daily interest.
CashNetUSA is a legit company that serves a need in the financial community. Still, it would be best if you only considered them for these purposes:
- You can repay your loan within one or two billing cycles
- All other borrowing options have been exhausted
- The money borrowed is used for essential expenses only (electric bill, water, rent)
- You only borrow what you need and not a dollar more
Suppose you have yet to try some of the recommended online loan sites for bad credit, like Personalloans or NetCredit. In that case, I recommend starting there before applying to CashNetUSA. Rates are lower, and you can borrow enough to get out of your debt, not just enough to get you to the next payday. Suppose you have tried other p2p loan sites but have not succeeded. In that case, the online payday lender provides a good option that is still cheaper than traditional payday loans.
Read the Entire Personal Loan Series
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- How to Apply for a Loan If You Have Bad Credit
- What are installment loans?
- How Car Equity Loans Works