Overview of Online Payday Loans
For those who find themselves broke, stuck between paycheques, and faced with an emergency situation or unexpected expense, an online payday loan might be the solution to their problem.
The concept of the payday advance, or short-term loan, has been around for many years, and has been growing steadily more popular in the past decade. While it’s easy to find a storefront Payday Loan office, many people prefer to fill out an application online. Not only does this afford the borrower an extra layer of privacy, but it also speeds up the process and cuts the paperwork down to a minimum. Money can be wired directly to the client, sometimes as quickly as an hour after the loan is approved.
While the details vary with each lender, the general concept remains basically the same: Online Payday Loans are a quick way to get some extra cash.
There are very few questions asked. Most lenders don’t even require a credit check. Generally, you can get approval for a loan if you’re over 18 years of age, and have proof of steady employment.
When used responsibly, these short-term loans are a quick, convenient way to get money for everything from a forgotten bill to an emergency car repair, or even a personal shopping spreethat’s right ladies, you can get the money to buy those beautiful shoes!
As with all forms of credit, there is the potential for financial mishaps, and even disaster.
First, and most importantly, there are interest rates to consider. Short-term advances are usually accompanied by higher than high interest rates, which compound periodically and can leave the borrower in a financial mess. Some clients find themselves taking out advances, just to pay off the interest from their last loan. It’s a cycle that can turn vicious very easily.
Many lenders will also charge an administration fee for every loan application. Fees vary depending on lender, but can be anywhere from ten to fifty dollars. When all is said and done, you could find yourself paying $250, to get a $200 loan.
Overall, online payday loans serve an excellent purpose, if they’re used in a conscientious way. For many people living paycheque-to-paycheque, a short-term loan is a viable solution for times when unexpected expenses pop up.
But borrowers beware: Easy money can be harder than it seems.