Online payday loans may be a great solution when you need money now. You don’t have to take long queues or wait for several days if you need money now because it is a quick option for you.
Time is important when you need money. You want fast cash to pay for your emergency expenses like roof renovation, car repair, utility bills, or when somebody gets sick in your family.
It’s stressful to be in a situation where you can’t do anything because you have no money. This is why getting your payday loans processed online can be a great option, learn more about payday loans online.
Let’s learn more about online payday loans to know if it is the right loan for you:
Payday loans, also known as a short-term, unsecured loan or cash advance is the loan granted to people who take a loan amounting to $100 to $1, 500. It is usually paid two to four weeks after receiving the loan.
The only difference between online and regular loans is that it is processed online. Compared to a loan application done in the actual lender, it is quicker and easier for applicants.
Lenders over the internet are not stringent with requirements. As long as you submit your identification, proof of income, active bank account, and that you’re in the legal age, you can apply for the loan on the lender’s site.
The processing of these requirements together with your application shouldn’t take that long. If you apply in the morning, you will be able to get the loan in the afternoon.
This is one advantage of applying for loans online. You avoid the hassle of filing your documents, taking queues, and traveling to the lender’s office.
In a matter of minutes or hours, you can have peace of mind that you can now settle your financial obligations or problems. If you applied personally, it may take you several days or even weeks to know if your application is successful or not.
What fees and interests do you have to pay?
If you are considering applying, you may want to consider the fees and interest. Generally, borrowing $100 can charge you an interest of $10 to $30. That is such a pricey interest rate.
Now, if you are asking if this loan is for you ask yourself if you can carry paying the loan. The annual percentage rate (APR) is 400 percent. For example, if you want to borrow $1, 000, you’ll need to pay $1, 150 if the interest is 15 percent per $100.
What are the fees and charges?
Don’t forget that this unsecured loan comes with fees and added charges. It comes on top of your principal loan and interest rate.
If you fall behind your due date, you will be charged with late fees or returned check fees. Make sure that you are aware of your due dates to avoid this kind of penalty.
You can be charged with “NSF” or non-sufficient funds penalty in case your balance in your bank account is insufficient. Since you gave your lender an electronic authorization, the bank can penalize you for that.
There is a term called a rollover. Depending on your state and federal law, rollovers can vary. When you can’t pay your loan on time and you prefer paying the fees and interest only, the loan will be renewed.
For example, if you borrowed $500, the rollover fee is $45, you will pay $545 plus another $45 when you completed your loan.
As you see, these are the fees and charges that come with your payday loan. If you think that you can avoid the unnecessary fees and stick with your repayment, well and good.
However, if you don’t really care about your repayment, you can end up paying more. You could lose more money along the way.
More and more people are trapped in the cycle of debt when they applied for a short-term loan. This is why payday loans are regarded as the face of predatory lending.
State and Federal Laws
With so many fake online lenders, many people have been victimized by this scheme. But you need to know that borrowers are protected through the state and federal laws.
Today, 32 states have capped their APRs at 36 percent for loans amounting to $2, 000 and payable in six months. The Truth in Lending Act (TILA) was revised to further protect the borrowers.
If you are thinking about whether to apply for a cash advance online or not, this post can guide you to come up with a balanced decision. After knowing the fees, charges, and interests on payday loans, you can assess well if it’s for you or not.