Are you considering using a payday loan lender online? If so that is a smart decision. Lenders are required to post their rates and fees up front, so comparison shopping is quite easy. Online lenders also know that they are competing with many others for your business, and are more apt to offer lower rates and faster turn-a-round times than traditional lenders.
Here are some details to consider when comparing payday loan lenders online:
Interest rates on payday loans are usually steep, especially compared to traditional type loans. Payday loans are small and short-term, so in order for the company to make a profit off the loan, the interest rate has to be high. Lenders must abide by the Truth in Lending laws and post the APR for the payday loans. This may or may not be easy to find. If it is not listed in the “open”, you may have to look under APR disclosures, payday loan disclosures, loan information, etc. in order to find what you are looking for.
You need to see if there are any additional fees besides the interest that will be charged. Some lenders charge loan-processing fees, so make sure you are fully aware of this before agreeing to a loan. Fees will be added to your loan and you are required to pay them when repaying the loan.
Terms of the Loan
You also need to compare the terms of the loans when using payday loan lenders online. Most lenders require that the full amount plus interest and fees be due back on your next payday. There are some lenders, however, that will extend the loan period if you are unable to pay it on its due date or allow you to make small installments over a certain length of time. Whatever the terms are for the loan you are choosing, look for any late fees or higher interest rates that may occur if this happens.
Always be able to contact the lender. Make sure you have a phone and/or fax number, email, and physical/mailing address. You can’t be too careful these days. With so many lenders on the market, some are fraudulent. You want to be able to contact them or report them if something happens or if you just need to make a few changes on your loan.
The loan process should be quick and simple when using payday loan lenders online. Only basic data must be provided – contact information, employment, bank account, etc. And you should hear of your approval or denial within a few hours, if not minutes, of submitting your application. Some lenders are so fast that you can even have the funds in your account in just one hour! And another great thing is that no credit checks are involved. So your score will not be lowered and if you have bad credit, you have nothing to worry about – you’ll still get approved!