An unexpected financial crisis bothering you
»Is it a medical emergency, your child’s school needs or some other bills for which you do not have sufficient funds
»Are you suddenly short of cash and looking for immediate monetary help
»Are you feeling shy of approaching your friends and relatives for cash
»But you are confident that your pay day is close by and you will soon have a cash flow.
»Avail pay day loan to bail you out!
What is a Payday Loans
It is a short term loan which can help you out through money urgencies. Lenders lend required cash and you need to pay back within the given time frame along with the interest incurred and lender’s fee. It is suitable for people who know that the next pay check is about to come and this loan can be immediately repaid. Payday loans is also known as cash advance loan. It is like borrowing cash from somebody and repaying it as soon as possible. This is helpful when unexpected expenses come along and you need money for limited time period. The process is simple too. You have to fill up an application form and once it is approved the loan amount is either handed over to you in cash or deposited in your bank account. Many lenders require you to deposit post dated cheques. For this reason payday loan is also known as cheque advance, post-dated check or deferred-deposit check loan.
Online and Cash Advance Payday Loans
There are two kinds of Payday loans known as online and cash advances.
Basic concept remaining the same, there is only a slight difference between payday cash advance and online loans. To get cash advance Payday loans, you need to give a post dated check to the lender along with some personal details and you can get cash advance on the spot. You get your check back after you repay the amount. For online payday loans, you need not deposit any check. Many companies provide loans online. Just run a search online and you will see hundreds of them offering great deals. Some even work round the clock to help out people in urgent need of money.
Getting an Online Payday Loan
The process of getting a payday loan has become even more convenient with the option of online transactions. There is no need to deposit a post dated check. Money is directly deposited in your bank account for instant access. Some online lenders demand a fax of income proof from you, while some others provide fax less services. However, all these facilities come at a price. You need to pay a higher fee and many lenders calculate fee on weekly basis. Some companies promote their services by providing your first loan without any fee or very low fee. The entire process usually takes one working day, but this also depends on the lender. Some may do it within few hours while others may take more than a day. Everything happens through online transfer.
Advantages of Online Payday Loans
• This procedure is extremely convenient. Internet access is all that is required to
procure these loans. There is no need to visit the lender.
• Small loan amounts ensure quick processing. Loan is approved virtually within minutes and money can be transferred to your account within a day’s time.
• Online forms are short and quick to fill and save you lot of time as compared to traditional physical forms.
• The usual requirement is that you should be 18 years old and earn a required amount of money each month.
• Your privacy is maintained as who do not need to contact anybody face to face.
• With advancements in technology and security measures, online transactions have practically become risk free.
• Most online lenders have more working hours as compared to physical ones. Some even work 24x7 for all time access.
A few words of caution
Doesn’t all this sound so relieving and a quick fix for your problems However, one must remember that interest for payday loans are high like for any other unsecured loans and increase if you are not able to pay within the agreed time frame. While taking such a loan, try to borrow only that much which you can easily pay along with the interest, from your next salary.
Many people advise to beware of payday loans calling them costly cash or referring with similar negative adjectives. Indeed payday loans can prove expensive for defaulters. Interest rates can escalate. But it works well for borrowers who repay on time. They are a costly form of credit but seemingly the best option in case of emergency and need for cash on short notice.
Like any loan, payday loans also need to be intelligently handled. A little caution always helps and keeps people out of trouble. Payday loans are a great option for short term crisis and there is nothing to be scared of if you are aware of how this works. Most importantly, choose your lender wisely.
Selection of an online payday loan lender
1. Take loans from reliable, tried and tested online lenders who have clear policies and security information.
2. Select only those online lenders who provide phone numbers, address, complete well organized information with FAQs, contact us page and display SSL certificate of security on their websites.
3. Dig out important information. For instance, find out if interest rates will increase if loan period is extended and what are the penalties that can be levied.
4. Cross check the final amount to be repaid with interest rates and any other additional or hidden charges applicable.
5. Read the legal documents, terms and conditions carefully. Some lenders may automatically extend the term or renew the loan without informing you. This may lead to additional interest burden
6. Beware of online lenders who ask for upfront processing fee or agree to give loan without asking for much of your information.
7. Rates of different online lenders should be compared and checked before finalizing the loan.
8. Payday loans should be availed only if you are sure of your next pay check. Plan your expenses wisely so that any extension for repayment time is not needed. Payday loans if extended prove to be costlier than other loans.
The convenience of payday loans, especially with the online option seems very attractive. It is the fastest way to get small amount of cash advance, incase of urgent needs. However, scams do happen in the online world as you do not know who is where and whether they are authentic. Some legwork and cautious dealing is helpful in the long run.