On Line Payday Loan: A Solution
It is convenient for someone in desperate need of a few hundred bucks to pay for an immediate or unexpected expense, like car repairs, house repairs, or hospital bills. However, is an on line payday loan the perfect solution to your financial woes?
Most payday loans work on the same terms. Whatever amount you loan, you are bound to pay for it in full, including the fees (interest) on your next payday. For example, you may for a loan of $500, and your loan company requires a $10 fee for every $100. On your next payday, you must pay $500 plus the $50 fee, giving you a grand total of $550. There should be no problem if you have that amount by the time you get your next work pay. However, if you come up short and cannot pay for the amount in full, you can do a “rollover”, which means that you move your loan payment to your next payday. When doing this, you will still have to pay accumulated fees.
Qualifications for loan approval
Unlike a bank loan, companies offering payday loans require very few qualifications for loan approval. These basic minimal qualifications are:
These minimal qualifications make it a convenient and easy online payday loan for anyone wanting to apply.
There are hundreds of companies offering payday loans online. You just have to browse them and take your pick. The application process usually involves filling out and submitting the application form provided online. This includes providing your personal information including your bank account number, so that the company can electronically wire the money straight into your bank account. All you have to do next is to wait for your application to be processed and approved. This usually takes an hour to a few hours or one day.
For someone who is desperate and needs quick cash, there are more immediate advantages than disadvantages.
Disadvantages and risks
For example, if you borrow $100 with a service fee of $15, after 14 days, or on your next payday, you will have to pay $115. If you roll over the loan for another payday, your total will be $130. If you roll it over for 2 more paydays, you will have a staggering total of $160.
In a time of weak economy and financial crisis, you simply cannot afford to take such an expensive risk. Also, since companies offering payday loans fast approval are scattered all over the Internet, there is the danger that some of them are illegitimate or even scams. You can never be entirely sure who it is you are giving all your personal information to, and if it will remain confidential and used purely for legitimate business transactions.
Now that you understand what an on line payday loan entails, you can decide whether or not it is the answer to your financial problems. If you have a pressing financial concern, and do not have any other feasible alternative, an on line payday loan can be your last resort. If you use this, remember that you should only borrow an amount that you can cover on your next payday. It is not advisable to do many rollovers for an amount that your income cannot pay.
An on line payday loan can be a quick fix to a pressing money problem only if you can afford to pay for it and the service fee included on your next payday. It is not an advisable alternative if you cannot pay back the loan immediately because it will only cause you bigger financial woes in the long run.