Last year, Alan Masarek made news as he left Google to become Vonage’s new CEO.
You can borrow small amounts of money ($100 to $1500) to help you out in an emergency using payday loans online. Online payday loans are typically due within 2 weeks, and payday lenders assume your next paycheck will be sufficient to repay the loan and cover your living expenses.
Payday loans are unsecured loans, which means you don’t have to use collateral (property that is considered valuable) to guarantee your loan. When loans, such as car loans, are secured by collateral, the lender can take your collateral (repossess your car) if you default on your loan. Payday lenders, however, just trust your word to repay the loan.
Trying to get a loan with bad credit can be difficult, because lenders are wary of your ability to handle debt responsibly. Online payday loans do not require credit checks, so people with bad credit or no credit can apply for payday loans online.
Payday loans are incredibly expensive, with interest rates averaging 365%. Compared to the interest rate of the average credit card (15%), this is very high. While you may only pay a $15 fee to borrow $100, the short term of the payday loan (amount of time - 2 weeks - you have until the loan is due) is what makes online payday loans so expensive. A loan for $100 at a 15% interest rate with the same term (2 weeks) would only cost 58 cents.
The 2-week term also makes payday loans difficult to repay, because many borrowers are not in a position to repay the full amount of the loan within such a short period of time. Payday lenders give borrowers the option to extend their payday loans (rolling over a payday loan), but the cost for this convenience is high.
Payday lenders typically charge $15 for every $100 borrowed to repay the loan, so extending a $100 loan 2 times can cost you a total of $45. When fees are continuously depleting your income, it becomes more difficult to repay your payday loan on time.
Avoid excessive payday loan fees and struggling with payday loan debt by repaying your online payday loan on time.
Since lenders do not rely on your credit to determine if you are capable of repaying your payday loan, they require that you meet certain payday loan qualifications before approving your loan request.
Even if you meet all the payday loan qualifications, you still may be ineligible for a payday loan if you live in one of the following states:
Payday lenders have secure, encrypted web sites that ensure the information you provide on your online payday loan application is protected. As long as you stick with a trusted payday lender, the information you post will only be seen by you and the payday lenders.
It’s easy to get a payday loan online and the steps are simple. Since payday loans online are so easy to get, you want to make sure you understand all the costs involved with payday loans online before you apply.
Make a payday loan request and provide payday lenders with your information. Payday lenders review your information to determine if you meet the payday loan qualifications.
The good thing about applying for payday loans online is that several payday lenders review your loan request, which increases your chances of being approved.
It’s likely that several payday lenders will approve your loan request and offer you payday loans. Understanding payday loan costs will help you compare various payday loan options and choose the best one.
If you are approved for a payday loan online and agree to the terms and costs of the payday loan, your payday lender will automatically deposit your loan funds into your bank account. You may be approved with cash in your account in less than an hour.
Payday lenders will electronically withdraw the loan amount due on the date you agreed upon. If you are unable to repay your payday loan, payday lenders may allow you to extend the due date of the loan, but be aware of the high costs involved with this option.
Learn more about payday loans online and their costs before applying for a payday loan online.