If you find yourself in a financial crunch and need a quick cash loan, an online payday loan can be a smart choice. But there are many things to consider before going this route.
So how do you choose which is the best online payday loan lender?
Short-term loans come with high fees and rates. And the cost of the loan itself can put a strain on your budget. These loans usually have very high interest rates and have terms of one to three months. They can be used only for emergency needs, and they must be repaid within 30 days.
Advantages of online quick cash loans
Borrowing money over the internet for a quick cash advance has some distinct advantages. One of the greatest advantages is that it can be used at any time of the day or night. There is no limit to the number of loans you can apply for, and the repayment terms can be as short as one week or as long as thirty days. So you have options in terms of how much cash you need.
When you need large sums of money, like pay for medical bills or for college, it can be difficult to apply for a short-term loan. However, if you borrow online, you can use the cash advance to pay off the money owed. By taking the loan in advance, you may be able to qualify for the maximum loan amount you can get online.
This payday loan has different fees and rates, depending on the lender you are dealing with.
Some of the most common fees are:
Application Fee: This is a standard fee that is required by most payday loan lenders. The process is simple: you submit your application for the payday loan, and the company will assess your personal situation and determine whether you are a good candidate for the loan. If so, you will be asked to answer a few questions to check your credit score and report. Then, if you pass, you will be notified whether you qualify for the loan.
Interest Rate: A higher interest rate can save you money. It is important to consider the difference between the introductory and the loan fees, as well as the interest rate on the loan. You should also consider the overall length of the loan.
Penalty Fee: A penalty fee is charged when you miss a payment on the loan. Fees include late fees, late penalty fees, bank overdraft fees, and other fees. Although these fees are low in comparison to the money you would be losing, the penalties can add up quickly, and they can be hard to pay off.
Collection Fee: You will be charged an extra fee if you are unable to pay the loan in full or if the loan goes into default. Any late fees or penalties will be added to the total amount owed. Check to see what kinds of penalties and fees the lender may charge before applying for the loan.
Holiday Payment Fee: During tax season, payday lenders have a seasonal payment scheme. The payment will be made upon the first day of the tax season. The fee is equal to a percentage of the first $200, with a maximum of 10% of the loan amount.
Payment Date: Payday loans are usually paid back in full by the borrower, either during the borrower’s next payday or on the date specified in the agreement. The payday lender makes its payment as soon as the lender receives payment from the borrower. In cases where the loan is disbursed during the borrower’s next payday, the payment date is one week after the date of the disbursement.
Lenders sometimes offer additional services, such as loan consolidation and application assistance. These are great options and can help you find a good deal, but you should always shop around before you apply for the payday loan.