Online Payday Loans
April 21, 2008 by
An online payday loan is a small, short-term loan with extremely high interest, which is repaid on the borrowers next pay day, usually in two weeks. Online payday loans are marketed through paid ads, email, online search, and referrals.
With these loans, you can borrow up to $1500, with $500 being the most common
amount borrowed. Upon approval, funds are usually available within
24 hours.
To qualify for a payday loan, you must be 18 years old, have a permanent address, and a checking account that funds can be wired to. A savings account will not be accepted. Employment requirements will vary with each company. A valid email address and home phone number will also be verified.
The applicant fills out an online pre-approval application or faxes the completed application, which requests information such as social security number, employment history, and bank account numbers. Some lenders also require a voided check.
Applying for an online payday loan has many benefits. These benefits include:
Convenience of the internet- everything is done in the comfort of your own home.
Less processing time
No credit history is needed
Privacy- no one is listening in or looking over your shoulder at the bank.
You can apply from anywhere
Funds are immediately available
The main drawbacks of online payday loans include:
Late repayment- If expenses from your next paycheck leave you with insufficient funds to repay your loan from last month, you have no choice but to roll it over. Rollovers can build up until you end up owing twice as much as you borrowed.
High interest rate- Loan borrowers can be hit with interest rates as high as 650 percent APR's.
Financial information- You are sending personal information, such as social security and bank account numbers over the internet to people who may or may not use them for the right purposes.
Many online lenders automatically renew loans by electronically withdrawing the finance charge from the borrower's checking account every payday.
Lender won't accept partial payments.
With these loans, you can borrow up to $1500, with $500 being the most common
amount borrowed. Upon approval, funds are usually available within
To qualify for a payday loan, you must be 18 years old, have a permanent address, and a checking account that funds can be wired to. A savings account will not be accepted. Employment requirements will vary with each company. A valid email address and home phone number will also be verified.
The applicant fills out an online pre-approval application or faxes the completed application, which requests information such as social security number, employment history, and bank account numbers. Some lenders also require a voided check.
Applying for an online payday loan has many benefits. These benefits include:
Convenience of the internet- everything is done in the comfort of your own home.
Less processing time
No credit history is needed
Privacy- no one is listening in or looking over your shoulder at the bank.
You can apply from anywhere
Funds are immediately available
The main drawbacks of online payday loans include:
Late repayment- If expenses from your next paycheck leave you with insufficient funds to repay your loan from last month, you have no choice but to roll it over. Rollovers can build up until you end up owing twice as much as you borrowed.
High interest rate- Loan borrowers can be hit with interest rates as high as 650 percent APR's.
Financial information- You are sending personal information, such as social security and bank account numbers over the internet to people who may or may not use them for the right purposes.
Many online lenders automatically renew loans by electronically withdrawing the finance charge from the borrower's checking account every payday.
Lender won't accept partial payments.
Payday Loans can end up costing you more than it appears. They can start a cycle that is next to impossible to get out of.
By Sunshine Red | Published 6/8/2007 | Read more »
This articles focuses on the use of promotional codes found online. The use of these codes usually allows shoppers to save money while shopping at their favorite online stores.
By Eric Loveday | Published 11/19/2007 | Read more »
Five occasions when PayDay Loans may actually be a good idea.
By reasonfaith | Published 2/6/2008 | Read more »
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Kerry
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