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If you’ve ever experienced a financial emergency, you know how stressful it can be. There’s actually a short-term solution that you may not have considered, a cash advance against your next paycheck, known most commonly as a payday loan. A payday loan is a short-term easy loans that is repaid the next time you get paid.
Online payday loans are easy to apply for with lenders offering online applications and electronic disbursement of funds. To apply for a payday loan, you just have to have a steady source of income, an active checking or savings account, be at least 18 years old, and be a citizen of the United States.
The online application and approval process is fast and easy. All you need to do is complete an online application form and submit it to the lender. The lender evaluates your application and determines if you qualify. Assuming you do, you’ll have your much-needed extra cash, automatically deposited into your bank account, the next business day. You can then take care of your financial obligations.
Are Payday Loans a Smart Option?
You may have heard that payday loans are a scam and that you shouldn’t use the service under any circumstances. Payday loans have this negative stigma due in part to the negative press and the industry critics railing against the industry. A lot has changed since the payday loan concept came onto the scene in the 1990s. There is now an industry association to which 12,000 payday loan venders belong. Working with a company that is a member of the Community Financial Services Association of America (CFSA) should give you peace of mind because members are required to follow set best business practices, which were put in place to ensure the industry treats consumers fairly and ethically.
One of the main charges against payday loans is that the interest rates are unbelievably high—in the triple digits, some critics have said. What they don’t mention is that the triple digit interest rate they’re railing against is actually the loan’s annual percentage rates (APR), which was calculated by rolling over the original two-week loan 26 times into an annual loan. However, since payday loans are short-term loans that must be repaid in two weeks with your next paycheck, the APR doesn’t come into play.
Better Interest Rates Online Due to Intense Competition
Multiple lender websites, which are similar to the popular insurance websites where several companies compete against each other to get your business, can help ensure you get the best deal for your payday loan. In addition, because the online payday loan playing field has so many companies competing for your business, you will most likely get a much better deal online than you would if you visited a payday loan company’s retail location.
Not only will you get a better rate, but you’ll also save valuable time. When you get your payday loan through an online company, everything is handled electronically. You’ll only spend a few minutes of time filling out the application. The rest of the loan process is handled behind the scenes, while you are taking care of the other important tasks on your agenda. Compare this to the time you’d need to take to drive or somehow get to a payday lender’s retail location, meet with a loan representative, fill out the paperwork and wait for approval and funding.
In a nutshell, payday loans can be a great way to cover a short-term cash crunch. Moreover, when you work with any of the thousands of CFSA members to get an online loan the process is quick, easy and relatively painless.