Chances are, you have heard of payday loans at one time or another. This popular type of short-term loan has been met with praise from consumers and criticism from detractors. The truth is that this type of loan is extremely easy to qualify for and offers unparalleled flexibility. Unlike traditional secured financing which come with stringent terms and conditions, repayment periods are determined beforehand and the total amount due is expressed clearly so the applicant can make responsible budgeting decisions. If you have a steady source of income from employment or benefits, chances are you will qualify without any hassles.
How do Online Loans Work?
Experience the height of flexibility and convenience with online financing. Most people use these types of loans because they are extremely easy to qualify for. When money is tight, bounced check fees are common. This type of financing eliminates the risk of overdrawing an account and are a cheap alternative to exorbitant overdraft fees. There is no need to stand in line or fax documents to your lender as the entire process can be completed online in the vast majority of situations.
Simply provide your basic contact information, current type of employment, and the account information where you would like to receive your online loan. You will be contacted by the lender and informed of the amount you qualify for, the repayment period and total cost of lending. We have gone to great lengths to partner with lenders that offer low interest rates and fees. Upon quick approval online, you will receive your money via direct deposit into your specified checking or savings account. Getting the cash you need has never been easier!
History of the Paycheck Advance
Paycheck loans have been a convenient source of cash for the last several decades. This flexible type of financing was originally offered exclusively in brick-and-mortar stores owned by individuals or companies. Applicants would provide proof of employment along with a post dated check for the loan amount including any interest fees to be cashed on the next payday. While this was an easy way to get money, some of the disadvantages included long lines inside the store, complicated paperwork and prohibitive operating hours. While some locations offered 24 hour service, many were closed at inconvenient times. Also, a lot of these stores were located in areas that were notorious for higher crime rates.
As the Internet became a mainstay in the majority of American households during the mid-nineties, short-term lenders began offering online loans at an increasing rate. Individuals looking for a low interest loan
no longer had to leave home to get one. This eliminated the need to deal with piles of paperwork or expensive faxing services to facilitate the advance. Recently, certain online lenders began offering up to $1500 directly deposited into qualified applicants' bank accounts within hours. This unprecedented advancement has benefited consumers exponentially.
Exposing the Truth
Perhaps you have heard some negative things about this type of financing in the past. As with anything, it is important to separate fact from myth in order to get a clear perspective. The truth is, most cash advance recipients belong to the middle class. To qualify, an applicant must have a steady stream of income from employment or certain benefits. The majority of users are high school graduates and have completed at least some college. Close to half of all applicants own their own house and use the loan to cover unforeseen expenses or emergencies. These statistics contradict many of the inflammatory arguments brought forth by naysayers armed with very few supporting facts.
Over 19 million individuals use payday loans each year due to the ease and flexibility associated with them. The majority of people cite using short-term loans because no other type of financing was available to them. Emergency payday loans are a convenience that simply cannot be matched in times of need. Understanding the facts about these advances is important due to the amount of misinformation surrounding the industry. You can be confident that your repayment terms and interest owed will be clearly expressed during the approval process.
Payday Loan Regulations
Most states are unique when it comes to regulating the payday lending industry. Currently, 34 states have laws on the books concerning short-term loans. These regulations may include a maximum loan amount (or cap on the loan) and restrictions on the repayment term lengths. In these states, lenders must comply with usury laws that place limits on the amount (or interest rate) charged on the money lended. Applicants can be confident that our lenders comply with the applicable laws in each locality.
Can I Consolidate My Loans?
Almost every payday lender offers some form of loan consolidation. If you have multiple outstanding loans, consider discussing your options with the lender. You may be able to roll them into a single loan with simplified terms and one repayment due date. If you find you can't pay the full amount back on time, simply request a rollover loan for an extended repayment period. While this is essentially taking out multiple loans, they will be consolidated into one, easy-to-manage product.
Category: Payday loans