When money falls short and your resources are tapped out, getting one of the many available online payday loans can be a short-term solution to a short-term financial problem. Meant to be a temporary fix for an immediate budget crisis, getting a payday loan is geared towards those who can repay their balance with their next paycheck.
These types of non-traditional loans are offered either in a storefront, or more typically, online. Online payday loans offer convenience and timeliness for those who are looking to acquire cash in a more speedy timeline. Most lenders only asking for a recent bank statement which can be faxed, sent via email, or even from a smartphone. Some lenders even offer a "no fax" application. One the best aspects of these loans is that there is no credit check required when applying. This lifts a heavy burden off the applicant if they have bad credit or no credit at all. Payday lenders often use a system call CL Verify to see if the applicant has any other outstanding payday loans. Some lenders put a cap on how many loans the applicant can have out at any given time. If a person has too many, they will be denied.
These kinds of loans come with a fee which is tacked onto the loan balance and payed at the time the original loan amount is payed off. Because loan terms are short, usually anywhere from 14-30, interest is calculated in a more condensed time frame which is why it seems that lenders are charging exorbitant rates. But in comparison to what a consumer may pay on a long-term loan, the total amount to be paid back is often the same.
Online payday loans to help with a budget were originally introduced as a way for people to buy food and daily necessities. Over the years they have become popular forms of quick cash acquisition because of the ease and timeliness of obtaining one. It is important for an applicant to realize, though, that when they borrow on an online payday loan, it is meant to be paid back with their next paycheck. Thus the term "payday loan". Repayment of the loan typically comes straight out of the borrowers bank account when their paycheck goes into the bank.
When considering online payday loans it is important to budget for the amount you have borrowed. Consider the reason for getting the loan in the first place. Is it an emergency? Can the expense you are borrowing for wait until your next payday? If not, take into consideration whether or not you can repay the loan within the loan terms. Also, make sure you understand the terms of the loan and the ramifications should you be unable to pay the loan back in full on your next payday.