The payday loans online can be a useful tool to borrow a small amount of money in a short period of time without many formalities. When used correctly and with good intentions, people can have a positive experience with short-term loans that will deliver results. Although these loans seem attractive, the fact is that for many years, payday loans have been the subject of many controversies.
Indeed, there are a lot of loans for people living in the US. Each loan is offered by a different lender and has different advantages as well as disadvantages. Some personal loans in the US you can consider such as personal loans for poor credit score, loans for people with very poor credit, online loans for people with bad credit… In this post, we will introduce to you about the payday loans online.
PAYDAY LOANS ONLINE
This post about the payday loan online includes three parts. They are: “What are the payday loans online in the US?”, “How to get the payday loans online in the US?”, and “The benefits and drawbacks of the payday loans online”. In addition, people can get payday loans for bad credit in the previous post of us.
1. What are the payday loans online in the US?
An online payday loan is a type of short-term loan where the lender extends high-interest credit based on borrower’s income and credit records. The principal of a short-term loan is usually a portion of the borrower’s next paycheck. These loans charge high-interest rates for short-term credit. These loans are also called cash advance loans or advance loan checks.
Some reasons why people should borrow the payday loan online are:
- Medical bills.
- Tuition fees.
- Home renovations.
- Consolidating debts.
- Moving homes.
- Or even a vacation.
The payday loans have a few desirable features and benefits:
- No restriction on purpose
- No credit checks
- You don’t need any collateral
- They are super fast
2. How to get payday loans online in the US?
To be eligible for the payday loans online, customers have to meet the following requirements:
- Customers must have a steady source of income
- Customers have a valid contact address
- Customers are a permanent resident of the state you are borrowing from
- Customers are at least 18 years old.
- Customers have an active bank account.
Before taking any payday loans online in the US, here are a few things to people look out for:
- Make sure people compare different lenders and settle for one with the most affordable rates and easy policies. This makes it easy and cheap to pay back the loan without paying extra.
- Instead of using short-term loans for emergencies, explore alternative sources of funding. There are several loan products that give people much-needed cash with cheaper and more flexible terms instead of one-time payments.
- If customers have difficulty paying payday loan due to multiple transfers and fees, talk to a credit counseling agency to help you get the finances in order
- If the selection of funding is short-term loans, use them only for short-term emergencies. Using this line of credit for a long-term debt solution is not financially accurate.
- Make sure people understand all of the terms and conditions of a lender before adding the signature on the loan agreement form. This will help customers avoid misunderstandings and litigation in the future that will even cost people more.
3. The benefits and drawbacks of the payday loans online
3.1. The benefits
- Provide an option when there are no others. If customers find facing a financial problem and customers have no other solution than a loan that will cover customers until your next paycheck, a payday loan might be a good option for customers to consider.
- Easy to obtain. These loans do not require a credit check or for customers to have access to credit cards
- Fast and convenient. The payday loans online provide the convenience of online registration and eliminate the hassles of filling out all of the paperwork associated with traditional loans. After submitting the application through a payday loan website, customers will be approved shortly and the funds will be deposited into the account within hours or days.
3.2. The drawback
- More expensive than other loans. The interest can up to 38%. Because this is a short-term loan and then compare that to the average 12% APR on a credit card and people will realize just how expensive these loans really are.
- Easy to fall into a vicious cycle. A large portion of the profits made by payday loan companies come from consumers who can not repay the loan earlier on the maturity date and thus will prolong their loan. This results in more cost to the customer being added on the initial loan amount which can then lead to excessive debt.
- Deception by lenders. Companies that lend money in the form of payday loans online can sometimes cheat in the information they disclose. Taking advantage of the fact that it is very difficult for most borrowers to protect themselves legally, payday lenders often use misleading marketing materials and find loopholes in contracting with the clients.
4. The interest rate and fees of payday loans online
The average online payment loan is $375. Using the lowest available financial fee ($ 15/$100 borrowed), the customer owes a financial fee of $ 56.25 for the total amount loan is $ 430.25.
If the customer chooses to roll over online payment loans, the new amount will be $ 495.94. That’s the amount borrowed $ 430.25, plus the financial fee of $ 64.69 = $ 495.94.
That’s how a $ 375 loan becomes almost $ 500 in a month.
Financial/interest charges are usually between 15% and 20%, depending on the lender, but may be higher. State law sets the maximum rate that payers can charge.
The annual interest rate (APR) for day loans is calculated by dividing the amount of interest payable on the amount borrowed; multiply that number by 365; divide that number by the repayment period and multiply by 100.
Today, all of you know the financial services are developing due to the development of the economy. The lenders offering a lot of personal loans such as low monthly payment loans, low-interest cash loans, lending institutions for personal loans… You can get information from some links low monthly payment loans, low-interest cash loans, lending institutions for personal loans…
Everyone should check the current credit score in the process of improving the credit score. If you are not sure how to check credit rating, please refer to the article of us on checking the credit score through the link Check credit rating.
Hillary (Team Content) – Info Credit Free