The internet has totally revolutionized paycheck lending, with online payday loans! Statistics reveal that the payday lending market, in America, has grown to a massive multi-billion dollar industry today! More and more people are getting attracted to this type of short-term cash-funding for their urgent monetary requirements because of the speed and convenience with which such loans are processed.
Why People Prefer Online Cash Advances?
Online pay day loans provide instant relief from financial worries! There are times when we are hit with sudden medical emergencies or unforeseen vehicle repair-work. For those of us who are living within a tight budget, on a fixed monthly salary, it can become very difficult to arrange the funds at such short notice. Even friends and family members may not be able to help us at that time because, after all, they are also in the same boat as us!
On such occasions, online payday loans come to our rescue, providing us with a few hundred dollars of cash advance, for 2-3 weeks, at a high rate of interest. We repay the amount in full, including the interest on it, on the day we get our next salary. We can either give a post-dated check to the lending company, or we can authorize them to withdraw the amount directly from our bank account on our next payday.
Instant Availability Of Cash
With instant online payday loans, you get the cash you need within 24 hours of applying for it. The approval procedure is so simple and hassle-free that it takes just about an hour to be verified for the loan. And the money is electronically transferred to your checking account overnight. So you can go ahead and use it the very next day!
The reason for such speed is that online payday loans are totally paperless by nature. The application form is online; the entire verification is done through telephone or online resources; even the loan disbursement is done through internet banking! Of course, some companies require documents to be faxed for verification, but most online paycheck lending companies have started doing business the faxless way, because most of the times, the faxes failed to reach their destinations anyway!
Fore-Warned Is Fore-Armed!
While a payday loan online can be availed with much ease and convenience, it should always be remembered that they have a heavy price tag attached to them! They come at an interest of 15%-30% per two weeks! This calculates to an APR of almost 400%-800%! So if you need to borrow money for more than a month, it is always better to go for the traditional lending process!
Secondly, there are also scammers out there, who have only setup their websites to collect your personal and financial information. If you see any lending website that doesn't start with an "https" instead of the regular "http", steer clear from it! The "s" indicates that the site uses encrypted web server security for your data.
Also stay away from companies which oblige you to take a fixed minimum paycheck loan, for an amount greater than what you need. For example, if you need just $300 at the moment, don't go for a company that forces you to draw $500. Remember that you will be paying interest on a weekly basis for the extra $200! Lastly, online payday loans should be taken for the minimum amount of time you need them. You must avoid letting the money sit in your bank accumulating interest unnecessarily.
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