$400 Payday Loan, How to Borrow Online

Femi Lewis

Written by

Femi Lewis
Katherine Fan

Edited by

Katherine Fan
Paul Sisolak

Reviewed by

Paul Sisolak

Managing unexpected emergencies can be difficult. What happens when you just don’t have the money available, or when your credit cards cannot cover the expense? Imagine needing to repair your car but being unable to afford the expense, or being unable to attend a loved one’s funeral because you can’t afford to travel.

A $400 payday loan may provide a temporary solution for these kinds of last-minute needs.

A payday loan is a short-term loan that will provide you with instant access to cash that can cover unexpected expenses and emergencies in a pinch. Even if you don’t have stellar credit, you can still qualify for a payday loan.

However, there are many costs associated with obtaining a payday loan. A lender will approve you with a loan based on your income. In exchange, you will receive your funds almost immediately — but at a very high-interest rate that needs to be repaid by your next payday.

Here’s an easy breakdown of payday loans, and how you can use them to bridge the gap between your empty pockets and your next payday.

What is a $400 Payday Loan?

When you need money quickly, you may need to consider a payday loan. Payday loans typically range from $200 to $500. A lender will do a soft credit check, and will be able to offer you a loan amount based on your income.

With a $400 payday loan, you will be able to have money at your disposal to meet your needs. In exchange, you will need to repay the loan by your next payday or incur additional fees that will be added on to the outstanding amount you owe.

To receive a payday loan, you will be required to write a postdated check to the lender or allow them to electronically debit your checking account when your next paycheck is deposited. The full loan amount, plus any applicable fees, must be repaid by your next payday.

Once your account access or repayment method has been established, the lender will deposit the $400 payday loan into your checking account. After that, you can use the money for whatever your immediate needs.

However, if you fail to repay the loan in full by the due date, you will need to refinance your loan, which will add additional fees and costs to you.

What Should I Consider Before Applying for a Payday Loan?

We sometimes think we need something right away, when it’s actually just a want. The desire for instant gratification can get in the way, and we rely on credit or a payday loan to fulfill our needs.

But if you need money quickly and don’t have other options, a $400 payday loan can help you get out of an immediate bind.

However, you need to consider the following information when applying for payday loans. Here are some steps to take when requesting payday loan financing:

  • Do I need the money? Due to their high rates of interest and loan fees, payday loans should only be used if you are experiencing a serious emergency and don’t have other financing options.
  • Can you repay the loan within two to four weeks? It’s enticing to have an extra $400 available until your next payday. But the amount you borrow needs to be repaid in full within mere weeks. If you fail to do so, you’ll often incur several steep fees as well as high rates of interest, making it difficult to repay the full balance of what you owe and get your finances back in order.
  • Payday loans are short-term, high-interest loans. A payday loan needs to be repaid within two to four weeks of receiving the loan. Furthermore, these loans usually carry hefty interest rates. For instance, if you take out a $400 loan that charges $10 for every $100 borrowed, you will be repaying $440.
  • Understand late payment penalties. When someone cannot pay back their payday loan by the given due date, there are fees applied to the account on top of your initial principal and interest rate. These fees will make it harder for you to repay, as they will increase the amount that you owe.
    Other fees often applied to loan payday borrowers include:

    • Rollover fees get added to your original loan when you defer payment;
    • Delay fees kick in when you need to change your loan’s due date;
    • Insufficient fund fees apply if you do not have enough money in your bank account to cover the repayment check draft;
    • Late fees are charged when you do not repay on time;
    • Return payment fees are applied when your check bounces, or when sufficient money is not available for an electronic debit.
  • Payday loans do not help you rebuild your credit. Many other types of loans will report your loan payments to the credit bureaus. This is to your advantage if you pay your credit card or other loans on time.Yet even if you pay back a payday loan on time, that timely repayment will not be reported to any credit reporting agency. Instead, you are simply repaying a debt.

Can I Get a $400 Loan With Bad Credit?

The short answer to this question is yes. A variety of payday lenders review your income and ability to repay your loan instead of relying on your credit score and history to determine eligibility.

Although the interest rate will be high, you will be able to get a payday loan in most states that allow them, even if you have bad credit.

Eligibility Criteria for a $400 Payday Loan

You won’t need to meet a long list of requirements in order to be eligible for a payday loan. These are the criteria you’ll typically need to meet in order to receive a payday loan:

  • Be at least 18 years old;
  • Hold a valid government-issued photo identification card such as a driver’s license or a passport;
  • Have a valid checking or savings account;
  • Show proof of income, either with a pay stub or bank statement showing consistent deposits;
  • Have a valid email address;
  • Have an active phone number.

How Quickly Can I Get the $400 Loan?

Receiving a $400 payday loan typically happens quickly. Once you have supplied your lender with all of the required information, your lender will run a soft credit check and verify your income. Then, once you have provided a check or authorized an electronic debit, the lender will send the money to your checking account. In some instances, the money can arrive within one hour, while other lenders can take up to 24 hours to deposit your funds.

If you decide that you need a payday loan to meet your needs, make sure that you are able to fit repayment into your budget. While a $400 payday loan can come in handy when you need it, failure to repay your debt in a timely manner can lead to high interest rates and penalty fees, which will only set you further back financially.