Internet Payday Loans: Tricks And Tips
Online payday loans make money available when you need it fast. But many websites offering these cash advances will try to trick or trap you into paying huge interest. Find out how to beat online payday loan lenders at their own game.
When you need money today, and not just a week from today, online payday loans can be a salvation. But for many people, these loans, also called payday advances or sometimes just cash advances, have become a nightmare. Here's the good and the bad of getting an online payday loan:
? Good: applying for a payday advance or other cash loan online rarely requires a credit check. There's also virtually no waiting to get cash, and no collateral, down payments, or paperwork headaches required.
? Bad: online payday loans' interest is close to or beyond outrageous, and the true cost is often hidden in the language of the agreement. Some payday loans have charged the equivalent of 600% annual interest!
? Really bad: some online payday loan lenders are not trustworthy. In some cases, lenders have made unjustified charges to clients' bank accounts. Just remember: they can take money out of your account just as easily as they put it in. Anyone can open a website, so be sure to check out the reputation of an online payday loan lender.
Online Payday Cash Advances: Tricks of the Trade
As with everything else in life that involves money, if you don't want to get cheated on your online payday advance, you had better know everything you need to know before applying. Here are some dangers to watch out for:
? Interest and fees. Hit the "back" button when you get to websites that don't tell you the interest rate and all fees, including late and penalty fees, or try to hide this information. Legally, all payday advance lenders are required to provide this information.
? Expensive no-interest loans. Some online payday loan companies offer no-interest loans for first-time borrowers. These really can be great, but beware: oftentimes these loans stop being free if you pay even a day late.
? Long-term short-term loans. Payday loans are meant to be short term--a couple of weeks at most. But many lenders will be only too happy to let you stretch out your loan's payback date, since it means they can keep charging interest. Make sure you know exactly how much a late repayment will cost you before accepting this kind of arrangement.
Beating Online Payday Loan Lenders at Their Own Game: Tips
? Take advantage of no-interest payday loans for new customers, just as long as you are absolutely sure you can pay them back on time or they'll go from free to expensive. After all, the biggest risk for any kind of cash advances are the enormous fees if you don't pay on time. If you can avoid paying interest, your problems are mostly solved.
? Make sure your online payday cash advance or loan lender is legit. Check to see whether the lender is a member of the Better Business Bureau--the site will display the logo prominently if the business is a member.
? Before you get your payday advance, create a quick budget for how you are going to pay the loan when it is due. Take into account any additional bills or expenses that will come up between now and payback day?and between payback day and your next pay check.
? Mark the payback due date on your calendar, your computer at home, your computer at work, your cellphone, your refrigerator magnets--you get the idea. Online payday loans only become risky and expensive when you don't pay on time.
? Compare lenders' annual interest rates and fees. Make sure you know the exact cost of repaying the loan so you can make an accurate comparison.
You have to do your research if you want to get a good payday loan, but thanks to the internet, that's one part of payday loans that's actually easy.
About the Author
Joel Walsh is a regular contributor to payday-loan--online.com. Read his other articles, with
even more secrets on getting a good payday loan online:
payday loan online
Tips on finding a Payday Loan
Finding the right online payday loan lender is important. You do not want to deal with unscrupulous or fake loan companies.
The first thing you will look for is a website that has been professionally designed and organized. Ideally, there is no "dead link" or a link which leads you the phrase "the page cannot be displayed". If you're up to it, check spelling and grammar. The information presented on the site should be clear and not riddled with "legal words" meant to confuse the reader. And then, there should a page for FAQs (Frequently Asked Questions) about payday loans and the procedure that the company undertakes. There should also be a page for the company's contact information. Their offices, email address, and contact numbers should be provided in this page. If convenient to you, check the office address.
Beware of online payday lenders that ask you for fees to process your applications. Also avoid payday loan websites that assure you of instant approval based only on a few questions, or that they no longer need documents such as latest bank statements or proof of employment. Remember, a real and reputable payday loan company would need information about your banking history and about your current employment. All in all, you do not see any hint that it belongs to a sleazy company.
All payday loan lenders must be licensed. Do not hesitate to ask information about their lending license. If they refused or their answer is vague, then look for another payday loan company.
Security is an important factor to consider in choosing a good payday loan company. In its website, a Security and Privacy Policy should be clearly posted. Make sure that you read this and it does not turn out to be a dead link. Most important of all, determine the kind of connection that the lender uses when you send your application form. The connection should be SSL (Secure Socket Layer). It is a secured connection and that no third party will be able to access the information that you provided. If unsure of the connection used by the lender, contact and ask the company. Again, if the answer is vague or evasive, find another loan company.
Lastly, there should be excellent customer service offered by the payday loan company. True, you need the money they have, but you will also pay that amount of money and more. You are the client, after all. Make sure that someone in that company is easily accessible to answer all your questions.
About The Author
Mr. Peter Garant is a long time contributer of financial articles, Most of his work is
Faxless Payday Loan and Credit Repair Articles. Peter Garant has been working in the financial
sector in the last 12 years and has vast experience in his field. Visit his sites to see more
articles from this author.
http://creditrepairkits.blogspot.com/
http://www.faxless-paydayloan.org/
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