At Last: Straight Talk about Online Payday Loans
There’s a lot of confusing talk about Online Payday Loans
Anyone with an internet connection has seen the ads for online payday loans. If you have an email account, there are payday loan and cash advance emails in your junk mail every day. Many people who are struggling to make ends meet and need to borrow money are cautious about online payday loans, and for good reason. You’d have to live in a cave not to know that the payday loan industry is beset with controversy. Proponents say payday loans are an indispensable form of short-term consumer credit, while critics claim that they can be a door to financial disaster. As with so many other things, the truth lies somewhere in between.
Online Payday Loans are easy for almost anyone to obtain
Online payday loans are a readily available form of short-term credit that almost anyone with a job can obtain. These things are true:
- Online payday lenders only require easy credit checks
- You can get a payday loan even if you have bad credit or no credit at all
- Installment loans for bad credit are available
- There’s no need to fax documents or leave your home or office
- The entire online application and approval process takes just minutes
- Loans of up to $1000 are available
- Funds can be deposited to your bank account quickly
On the other hand, these things are also true:
- Most payday lenders obtain Teletrack reports to make credit-risk assessments, although Teletrack is not a traditional credit bureau and a Teletrack check won’t show up on your credit report
- Before you can get an installment payday loan, a lender may require that you borrow and pay back a certain number of single-payment payday loans
- Once your loan is approved, the time it takes for funds to be deposited to your account can vary depending on who your lender is and what time of day you apply
- Loan amounts are based on each lender’s individual lending criteria, which typically include your income, the length of your current employment, and the number of loans you’ve previously obtained and paid back
Online Payday Loans can solve money problems
Online payday loans can provide quick solutions for cash short-falls between paychecks. Payday loans, including installment loans for bad credit, are short-term loans intended for immediate cash needs. Where people get in trouble, and where the controversy starts to boil, is when paying a loan back on payday leaves a borrower short of cash again. Borrowers who get extensions of payday loans rather than pay them when they’re due, or who get a second loan to pay off the first one, can and do bury themselves in unmanageable debt very quickly.
Online Payday Loans are often worth the price
Payday loans are an expensive form of credit — to put it any other way would be a misrepresentation. But they are also very high-risk loans, and the price charged for the credit reflects that fact. A high rate of return on its investment is what makes a payday lender able to provide credit to so many people who can’t borrow money anywhere else. The bottom line is that when you need money and can pay it back when due, an online payday loan is worth the price. Also, keep in mind that the fees charged for an online payday loan pale in comparison to the fees typically charged by landlords when rent is paid a couple of days late.
Online Payday Loans are as beneficial as you choose to make them
It’s up to you to borrow wisely. Online payday loans can be an invaluable source of immediate cash when other forms of credit are unavailable, and you shouldn’t hesitate to apply for one when it makes sense to do so.
Look down the road to your next paycheck. If you can make reasonable adjustments to your budget that will allow you to get by after paying back an online payday loan, then by all means apply for one and get your money worries behind you. Used properly as short-term credit to tide you over until your next paycheck, getting an online payday loan can be a sound financial decision.