Payday Loans and Fast Cash Guide

Save Money With Online Cash Loans

Payday loans are freakin’ expensive, but you can save money by using online cash loans instead of driving down to your local lender.  Most lenders charge roughly the same amount, but the increased number of choices that are available online will allow you to shop around better and find specials that aren’t going to be available in your neighborhood.  In this post I want to show you what to look for when shopping around so you can find a cheap online cash loan.

Even if you live in a huge city that has lots of payday lenders, like Phoenix or L.A., there are only going to be a couple dozen different companies that you can borrow money from.  Online there are hundreds, so your options are only limited by the time that you have to spend researching online cash loan lenders.  With so many choices it’s important that you check out at least a dozen different ones to make sure that you’re getting a good price.

The average interest on an online cash loan is 25 bucks for each 100 that you borrow, so use that as a gauge when shopping around.

It will take some time to decipher what each lender’s interest rate is since they don’t make it very clear on their website, but this little bit of extra work is going to save you a ton of cash.

Another thing to watch for when you’re doing this research is introductory rates.  Some lenders will even give free online cash loans for first time customers.  This is rare and most specials are short lived, but they do exist.  There’s a good chance that if you spend some time researching lenders that you can stumble across a great first time deal.

Needing fast cash can be an extremely stressful experience, but if you can take the time to do some extra searching you’ll know that you’re making a smart decision, rather than jumping on the first thing that you see.  The extra time will also help you calm down a bit and make decisions more clearly.

Find The Best Deal With Payday Loans Online

It’s easy to find payday loans online, but how are you going to know if you’re getting a good deal? Or ripped off?  Many people feel that the payday loan industry have unfair lending practices due to their loose regulation and dealing with those who don’t make enough money.  This is very true with online payday loans.  There are some companies that are honest and fair, while others are out to charge you as much money as they feasibly can!

This post will take a look at how fast payday loans online work, and the things to watch out for.  There certainly are lenders out there that are willing to help you out, but there are just as many (probably more) that want to leech as much money off of you as they can!

What Is A Payday Loan?

For those of you that are new with this, a payday loan, or payday cash advance, is a short term loan that is very easy to qualify for and get fast cash when you need it.  The basic requirements are that you’re employed and can prove it, you’re who you say you are, and you have a bank account.  Each lender has their own requirements for their loans and each state has their regulations, but these are the basic factors and there is no credit check involved.  The amount of money that they lend you will depend on how much money you make, how often you’re paid, and your general living expenses (rent, child care, etc.).  The cash advance is repaid after you receive your next paycheck, and usually you’ll write a post-dated check for the amount that’s due.

The interest rates on payday cash advances are pretty high, but when compared to things like late fees and credit card penalties they aren’t so bad (see video on sidebar).  The average rate for payday loans in the U.S. is around $25 per $100 borrowed.  25% is a really high interest rate, but the risk is fairly high on these types of loans and their terms are very short compared to a personal loan from the bank.  Also, the average amount lent is around $500, and the money will be in your hand within the day in most cases.

How Payday Loans Online Work

Online payday cash advances work in a very similar fashion as their brick and mortar counterparts, but you never have to deal with an actual person.  The application process with traditional online payday loans is you visit their website, download the application, fill it out, fax it back, and you’re approved via email.  After you’ve qualified the money is transferred to your bank account.  Loans vary from $100 to $1500 when done online.  If you need more than that, I recommend heading to a storefront lender.

The loan is repaid by your bank allowing the online payday lender to withdraw the money from your account to theirs.  This might not seem like a big deal now, but if you miss a payment they’re going to leech money until they are repaid.

Be sure that your bank account hasn’t been overdrafted before accepting the loan.  I’ve seen people be seriously hurting for cash, get the money, then can’t do anything with it since there are holds on their account!  It seems like a boner move, but it happens a lot.  Some lenders will check your bank account balance before lending to make sure that this doesn’t happen.

The problem with this isn’t identity theft, like you might think, it’s that many lenders operate in the states with the most lax regulations on payday loans.  Your loan will fall with that state’s jurisdiction, so you can be charged an incredible interest rate, sometimes as high as 40-50%!  If you miss a payment, you’re in even deeper doo-doo and the payments will skyrocket!

Online No Fax Payday Loan

Faxless payday loans are the same as other online loans, but the application process is done totally online.  Each lender has their own method for determining your identity, but you’re at least going to need a driver’s license/state ID, a social security number, and a bank account.  Again, your credit score doesn’t matter since there is no credit check involved.  The online payday loan application will go through your information to verify that you’re honest with it, and verify that you’re the owner of the bank account.  Most times this is done with a automated phone call, so you may need to be near a telephone as well.  Confirmation of your faxless payday loan is done via email.

Getting A Good Rate On An Online Payday Loan

As I said above, payday loans online are much less regulated than the stores are.  What this means for you is that each one is going to have very different rates than the next guy, so you’ll have to do some homework.  Not every company has their interest rates and fee structure listed on their website, so it might take having them contact you to get the full story.  Don’t be scared to turn one down for a better rate!  If you’re offered more than $35 per $100 borrowed, it’s probably a good idea to find a different company.  Shopping around will get you the low rates that you want, and save you a ton of money.

Beware, there are some serious sharks in the online payday loan industry.  These companies want nothing more than to suck every dime from you they possibly can, sometimes doing it illegally.  Laws are different from state to state, and in some situations what is legal in one state can be legal in a state where it’s usually not.  The state that the company operates in will usually determine how it operates.  That isn’t always the case and many times they’ll cross boundaries to get money from you.  If you feel like something’s fishy about a companies terms, turn them down before you sign anything!  That’s your right as a customer.

My Story With Online Payday Loans

My experience with payday loans is short.  I needed a cash advance once when I was sick and needed to go to the doctor (no insurance of course!).  Since I was so sick, I really didn’t want to have to go to the payday lender and figured I would try the online ones that I’d been hearing about.  Keep in mind that this was a few years ago and right when these companies came on the scene.  Regulations were even looser then, so when I heard what my terms were going to be I canceled and walked down to the payday lender.

Don’t forget that the online payday loan industry is much better now than it was then!

Thanks for reading,

Lydia

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