200 Dollar Payday Loan: Should You Get One?

Category: Questions & Answers

Jake asked us the following question:

“Lenders today seem to compete by offering higher loan amounts to attract borrowers. But in my case, and maybe in many others, I just need to borrow a small loan like a couple of hundred bucks. Do storefront lenders entertain a 200 dollar payday loan?” – Jake, San Diego, CA

A direct lender often has a range of loan amounts and, yes, two hundred bucks is likely the starting point. Admittedly, a 200 dollar payday loan is not attractive to a lender; he’ll only earn around $40 if you pay on time. That’s also the reason why lenders are offering higher amounts now so they can earn higher returns as well. Lending is a business after all.

But you still have a lot of lenders out there that will gladly give you an approval for a 200 dollar payday loan, and you may not like the reason. A $200 loan can easily balloon to $1,000 if you can’t pay on time and you keep refinancing the loan. In fact, the Center for Responsible Lending collated some stories that showed a pattern where borrowers would start with a small loan and end up paying the debt three times over after clearing the loan in nearly a year. Many borrowers in the UK and Canada have fallen into a debt trap for small loan amounts. My advice is to take a 200 Dollar payday loan and pay it on time.

Online loan sites offer fast and easy processing

Many lending websites today offer a fast and quick processing without you needing to leave your seat. Small amounts like a 200 dollar payday loan are ideal for online processing because, unlike a 1000 dollar loan, it’s less risky for the direct lender; he’ll just lose a small amount should the borrower run away.

The application process is fairly simple: just submit your personal, work and basic bank information and you can get the approval on the same day. Don’t forget to indicate that you’re applying for a 200 dollar payday loan to avoid getting more loan than you actually need.

Two types of online loan sites

Generally, there are two types of online loan sites: a direct lending site and a referral site. The direct lending site is owned by the actual lending agency and you are dealing directly with it. On the other hand, the referral site is like a portal website where it features various lending agencies that you can choose from.

The advantage of a direct lending site is that you need not pay a middle-man fee. If you know a reputable direct lending site, then you can borrow straight from the lender. However, if you’re searching for one, it may overwhelm you just to research the most reputable sites for sheer number of online lenders today. In this case, a referral site is a better option because it saves you time to search for the lender with the best terms. The drawback is that some referral sites may charge a fee, which is cost included in the loan package given by the direct lender. However, many referral sites and lenders today are offering the same published rates so using a referral site is better in this case.

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Some final reminders are in order:

  1. Keep in mind to pay on time to avoid being charged with more fees. The longer you extend payment, the higher you’ll be paying for interest. Here’s a neat calculator to check how much interest you’ll be paying based on how long you’ll be paying off the loan.

  2. Make sure that you understand the terms and hidden fees. In one case, a borrower kept extending her loan for weeks; she didn’t know that there was a weekly penalty for that. So read the fine print carefully.

  3. Use the 200 dollar payday loan wisely. If you’re just buying a leisure product or something that you can buy with the next pay check, you may be paying more with the interest and fees added to the product’s price.


Online search sites are making it easy on how to find even small amounts like a 200 dollar payday loan. Spend time looking for the best referral sites and you’re more likely to find the lender with the best terms and fees.

By Nestor Gilbert

Senior writer for FinancesOnline. If he is not writing about the booming SaaS and B2B industry, with special focus on developments in CRM and business intelligence software spaces, he is editing manuscripts for aspiring and veteran authors. He has compiled years of experience editing book titles and writing for popular marketing and technical publications.

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