Understanding Online Payday Advances
If we have tried to source out all possible means of borrowing from another peer, friend, or family and we are just not in luck to come up with other possible way then we can turn to online payday advances. We normally consider this as our last option especially if we run out of the other better alternatives. This type of loan facility is very helpful when one is an emergency situation and many people have been relieved of paycheck issues by taking their chances as they apply and submit their advance application for a quick and fast cash payday loans online.
What are the advantages of online payday advances?
Compared to traditional banks and other lending companies, online payday advances provides instant cash with quick approval for a temporary solution to an individual’s money problem. It is intended for short-term irregular cash flow. Their basic requirements includes no faxing of documents and no teletrack or credit check. There are typically four basic things that you just have to answer and you are good to apply. Are you at least 18 years old? Are you a citizen? Do you have source of income? Do you have a bank account? Application is very easy as you have to fill out personal information online. Aside from this, processing of loan application only takes a few hours and you will get instant approval.
If one applies to a bank for the same amount of cash loan, they will not be able to get the money as quickly as instant payday advance loan companies can give it. There is quite a tedious process that one has to go through because of the requirements and verification process. A bank will require a stack of documents from the borrower and they will have to either bring it personally in the bank or fax it. Verification process includes using the teletrack service and they also check on the credit history of the borrower. This alone will take not only hours but days and with the urgency of your cash need, banks are not surely favored at this time.
What are the benefits of online payday advances?
The quickest solution to financial needs – Instant approval within hours of applying is definitely good news to the customer. Money gets to be deposited into your bank account within the same day. You can even get the money on weekends or holidays so there is no need to worry about applying on a Friday night because it really doesn’t matter if you get to be approved on a weekend.
Timesaver – Borrowers are not only financially constrained but are also time compelled as well. One of the benefits of online payday advances is getting the quick check cashing. Online application is made easier to understand and use. It doesn’t involve any complicated process that can be the cause of a delay. This is perhaps one major benefit that people are attracted to. It instantly provides a glimmer of hope to people who are in desperate need of money.
What are the pitfalls of online payday advances?
Underneath it all, there are pitfalls that one must be aware of. People are drawn and are horse blinded with it because most of them have no other way to go to but payday loans. They sometimes lack the time to even compare and really study the whole package of online payday advances. If people do not pay attention to the things that they need to, they might just end up in another trouble.
Outrageous interest rates – One of the biggest pitfalls of payday advance loans are its interest rates. It is already a given fact that they are higher compared to the bank because they have to cover a higher risk for the money that they have to lend. Some lenders are charging very high interest rates that borrowers may not know of because they didn’t even bother to ask and normally this would not be provided in the website so as not to discourage people from applying.
No other payment terms and conditions – There is no flexible payment terms and you are trapped with paying a big amount of money because you have no other option but to follow the lender’s payment terms and conditions.