Online Payday Loans When You Need It Most
Payday loans can be helpful to those currently struggling with finances. Outlets that provide payday loans are generally more flexible and personable than conventional lenders. Likewise, their requirements for eligibility can be far less strict. A credit score may be less of a factor, and the time it takes for you to be approved is relatively quick. They can be a viable option when unexpected and costly emergencies present themselves.
If credit cards and personal loans are unavailable to you, you may consider taking a payday loan to help you with your expenses. This financial product is used for a wide range of expenses. Utilities, groceries, and medical bills are a few examples. They can be useful in getting your life back on track.
There are some drawbacks to consider. Most notably are payday loans interest rates, which can be higher than credit card payments and late fees.
If your financial standings are bad at the time of your application, the lender may limit what you can purchase with your loan. This is rare, however. Typically, lenders do not control how you spend your money.
There are plenty of advantages to using short-term loans. If you lack access to standard credit, they may be your only avenue for emergency cash. Similarly, if you work with a provider long enough, you may build enough trust for them to consider you suitable for larger loans.
While most people think of in-store locations when discussing options for fast cash, online outlets have become viable alternatives in recent years. In fact, they can be preferable to brick-and-mortar outlets in a variety of circumstances.
Below are some important details for you to keep in mind when working with an online payday loan outlet.
How It Works
Online payday loans are different from conventional financing in a few key ways. Payday loans are given with the expectation that you will pay for the loan when your next paycheck becomes available. If you manage your funds responsibly, you can view shorter-duration funding as receiving your paycheck a week -- or longer -- in advance.
If your due date comes and you aren't able to pay, the lender may let you push back your due date. A percentage fee may be tacked onto your outstanding balance.
While delaying the due date may seem appealing in the short-term, it will result in losing more money through interest and fees.
Many states will restrict the interest a lender can place on your loan. Likewise, your state may keep you from borrowing money if you have too many outstanding balances. Check your state's webpage to see what applies to your circumstance.
Online lenders can provide payment in a few different ways. While you may be partial to cash payments, online lenders typically use direct deposit, which is an efficient way of delivering your money. Through direct deposit, the funds are added to your bank account. This account can be a savings or checking account. This means that people can apply for payday loans with a savings account as well. You may receive the money in as soon as one business day.
Certain lenders let you request a prepaid debit card. Those without access to a bank or checking account tend to prefer this option. The cards contain the full balance of the loan. Customers using this option may receive a PIN and other security measures to help ensure that transactions made with the card are legitimate.
Payday Loans with prepaid debit card allow customers to get a cash, giving them access to withdraw a part of their balance when necessary.
Taking a cash advance isn't free, however. When you take a cash advance, a percentage fee is subtracted from your balance as well. This fee will vary from lender to lender. In some cases, lenders may be willing to void the fee if you need money urgently – consult with your lender of choice to see if this will be true for you.
How to Apply for Payday Loan Online
There are a few documents you may need to have on hand when you begin the process of applying for a payday loan online.
- Proof of employment
- Paychecks from previous weeks
- A valid ID
- Contact information
- Invoices and receipts relevant to your financial situation
Proof of employment is important to many online payday loan vendors. You need to show that you receive a steady income. Without one, you will have trouble finding a lender open to working with you.
Past paychecks may be useful when qualifying as well. It shows lenders that your earnings are consistent.
A valid ID may be required. A driver's license is preferred in most circumstances. Tax documents, like your W-2, may also be acceptable. Without a valid ID, you likely won't be able to work with a payday loan vendor.
Lenders will typically request multiple ways of contacting you or your immediate family. You will need to provide them your current address as well. If you're living with a friend or a family member, their address may be acceptable.
You may want to send the lender any invoices and receipts relevant to your financial struggles. These can show your financer that you have accurately represented the costs and expenses that you're struggling with. If these expenses are related to a disability or dependent, lenders may be willing to negotiate a larger loan.
Online payday loans can be effective ways to get urgent funds quickly. If you use them responsibly, they can be useful in managing your short-term expenses.
Keeping Your Data Safe
By following the best practices for online lending, you can keep your data safe from identity theft, scams, and other dangers present on the World Wide Web. Before entering your personal information into a financial site, make sure it meets the requirements outlined in the following checklist.
- Only work with sites that have an SSL certificate. You can tell if a site is secure by checking for the “https” protocol. If it is missing the “s” after the “p,” then you should look somewhere else for your online funds. Sites without an SSL may not offer a secure connection between the web server and your browser, offering an easy opportunity for cyber thieves to steal your information.
- Install internet security software onto your computer. Being proactive about internet safety requires some defensive work on your end. Even if you only visit the best sites, you still risk losing your data if you do not have malware protection installed on your computer, as hackers can and will find ways inside your machine if you let your guard down.
- Regularly update your passwords. You should never use the same password twice. If you do, hackers will be able to access more of your accounts after cracking just one of them. It’s best to use a variety of passwords, while also updating them every several weeks.
- Request that lenders scrub your information after you finish working with them. Even a simple loan inquiry puts your data out there, entering your personal information onto all kinds of lists and ensuring that you will be reached out to again and again. One alternative to that is asking the site to remove all your personal information.
Chances are a data thief will eventually get your data. It’s important to respond quickly to messages from your bank and other important accounts if they see any suspicious activity. As long as you seal up your breached account sooner rather than later, you should be able to mitigate any damage.
Finding a Nearby Payday Loan
Online funding is great for convenience, but it does have its limitations. Using a local lender may increase the odds of being approved for a payday loan. Local financial retailers offer:
- a more subjective process for determining loan worthiness
- access to products that are not always available online, such as terms available only in your location
- greater flexibility for receiving your loan money
The great majority of those who look for an Internet loan will not find funding that way. However, many of them still may find help from a location closer to home.
Receiving Your Loan Amount
Depending on your lender, there may be multiple ways to receive your funding. However, with online lenders, there is usually only one option – having your money deposited into your checking account. The transaction takes at least one business day.
It will be a lot harder to receive a payday loan without a checking account, as this is the preferred way to deposit your loan amount and eventually withdraw the money with the fees on the specified due date.
After you receive your money, you will be able to use the cash as you would spend other funds added to your checking account.
Who Should Use Shorter-Duration Funding?
Short-term lending makes sense for the following consumers:
- Those with bad credit who cannot receive traditional funding, such as a bank loan or a credit card
- Those who need money faster than other lenders can provide
- Those who will be able to pay back the money on the specified due date
Most lenders have their own list of requirements for loan eligibility. Meeting these requirements does not guarantee that you will receive a loan, but not meeting them will ensure rejection. Before applying for a payday loan online, it is important to make sure you meet these basic requirements:
- You should be a U.S. resident
- You should be at least 18 years of age
- Your bank account should be in good standing
- Your monthly income should be no less than $800
Some consumers think that mistakes in the past bar them from receiving short-term loans. This is not always true. Even if you have suffered a bankruptcy, you may not be automatically disqualified for a loan. The lender will check your credit, but you may still receive the funding.
More Frequently Asked Questions
We have processed more than 1 million payday loan requests through OpenCashAdvance. Some of these consumers reach out to us with questions before or after sending in their loan inquiry. Here are some of the most popular questions.
Is a Payday Loan Different from an Installment Loan?
Yes, short-term cash is fundamentally different from an installment loan. An installment loan is paid back bit by bit over time. That’s not the case with cash advance funding, which borrowers need to pay back in one lump sum on the specified due date.
What is the Most I Can Borrow?
State regulations limit how much you can borrow through short-term funding in your location. Some cities have their own regulations which may be stricter than federal or state laws. Three-month payday loans are not available in some areas. A reputable lender will be able to help you navigate any restrictions in your area as you try to find a loan that fits with your budget.
What if I Cannot Pay It Back on Time?
Most lenders will try to automatically withdraw your payment from your checking account on the day your loan is due. If you do not have enough funds, you may receive a fee from your bank as well as from the lender. These fees can make it even harder to pay back your loan, so it’s important to reach out to your lender ahead of time and try to work something out with them.
Do You Have a Copy of My Lending Agreement?
No, we are not a lender. If you need to see your loan agreement for any reason, you should reach out to your lender directly. It’s important to keep a copy of this documentation for your records. Before signing a loan agreement, you should understand the true cost of the loan, as well as the penalties for missing a payment.
The most important thing to remember about shorter-duration loans is that they need to be paid back on time. The second most important thing is to always pay back cash advances with unborrowed money, as borrowing money to pay off debt multiplies the interest owed, making it harder to escape the debt.
When used correctly, short-term, small-dollar loans can be a solid option for paying off sudden expenses.