How Fast is an Online Payday Loan?
Speed is something we all wish for, and nothing can be closer to the truth when it comes to emergency situations and the need for some quick funds in your bank account. We all know what it feels like to have no money in our bank account with payday still being days or weeks away, and to put it quite simply, it feels awful and can lead to depression. So you need to consider whether you can lift your head up and be strong until your next pay comes around, or whether you need to get an online payday loan to help you through your short term financial crisis.
In terms of speed, an online payday loan is possibly the quickest way to obtain funds in your bank account when you compare it with some of the more traditional loan methods. It is often the case that the funds will be cleared in your account within 24 hours of being approved for the online payday loan, and sometimes the entire process is even quicker than this. This is because an online payday loan is designed to help you out when you have a situation or emergency that requires you to make a payment or withdraw funds from your account immediately to get you out of the situation you found yourself in. Online payday loan lenders understand that time is often of the essence, so they have made it quite simple and convenient to access some quick cash through obtaining an online payday loan.
Due to the fast nature of an online payday loan, there are interest charges that will be applied to the loan and these will need to be repaid when the loan is repaid. This is why you need to decide if you can wait until your next payday or if the emergency is such that you simply can’t wait. When you can’t wait, you can take advantage of an online payday loan, and the trade off is the fact that you will need to repay a bit more for the convenient service. That being said, the interest rates are often advertised at an annual rate, so where you might find a particular online payday loan lender charges 500% in interest, this will be the annual rate and does not mean that if you borrowed $100 for a period of 14 days and repaid the entire amount within 14 days, that you would be required to fork out an additional 500% of the original loan amount. All reputable online payday loan lenders will be upfront with their interest rates and any additional fees and charges, prior to you accepting the loan and receiving the funds, and this is extremely important. As a very general rule, for every $100 you borrow you will need to repay approximately $115, however this is only general and the actual interest, terms and conditions will vary from one online payday loan lender to the next.
An online payday loan is definitely a fast cash solution when you need money now. It is not something you should consider as a long term loan or long term solution to your financial problems, and it should be used sparingly and paid back as quickly as you can.