Online payday loans make money available when you need it fast. But many websites offering these cash advances will try to trick or trap you into paying huge interest. Find out how to beat online payday loan lenders at their own game.
When you need money today, and not just a week from today, online payday loans can be a salvation. But for many people, these loans, also called payday advances or sometimes just cash advances, have become a nightmare. Here's good and bad of getting an online payday loan:
• Good: applying for a payday advance or other cash loan online rarely requires a credit check. There's also virtually no waiting to get cash, and no collateral, down payments, or paperwork headaches required.
• Bad: online payday loans’ interest is close to or beyond outrageous, and true cost is often hidden in language of agreement. Some payday loans have charged equivalent of 600% annual interest!
• Really bad: some online payday loan lenders are not trustworthy. In some cases, lenders have made unjustified charges to clients' bank accounts. Just remember: they can take money out of your account just as easily as they put it in. Anyone can open a website, so be sure to check out reputation of an online payday loan lender.
Online Payday Cash Advances: Tricks of Trade
As with everything else in life that involves money, if you don't want to get cheated on your online payday advance, you had better know everything you need to know before applying. Here are some dangers to watch out for:
• Interest and fees. Hit "back" button when you get to websites that don't tell you interest rate and all fees, including late and penalty fees, or try to hide this information. Legally, all payday advance lenders are required to provide this information.
• Expensive no-interest loans. Some online payday loan companies offer no-interest loans for first-time borrowers. These really can be great, but beware: oftentimes these loans stop being free if you pay even a day late.