Why is it that every aspect of finances, from sticking with a budget to paying the bills, seems so complex? If you feel kind of dumbfounded about finances, you are not alone. Most people know just enough to get by, and not a whole lot more. That doesn’t mean that you shouldn’t take the time to learn about certain aspects of the financial industry, though. For example, a lot of people don’t know much about payday advance loans and have asked for a payday loans online for dummies guide. To help meet this demand, we have put the following guide together to help answer any questions you have about getting a payday loan online.
What is an Online Payday Loan anyway?
The first thing to cover in this payday loans online for dummies guide is to cover the most basic aspects of payday loans. As the name suggests, payday advance loans are for people who are employed and brining in a regular income. Many years ago, employers would allow their employees to get an advance on their paychecks. Since most employers don’t do this any longer, online payday lenders have stepped in to fill the gap. An online payday lending company offers smaller dollar loans (typically for few hundred dollars) that borrowers pay back when they get their next paycheck at work. These smaller dollar loans allow people to borrow just enough money to get by between paydays at their jobs.
Are Payday Loan Fees Expensive?
There are a lot of stories out there about the supposed high fees that payday lenders charge. The truth is that the people who write these stories often take the flat rate that payday lenders charge (for example $15 for every $100 borrowed) and then annualize the payment. They do not take into account that people usually pay back their loans on time, so annualized fees simply do not apply to the vast majority of payday advance loans that are fulfilled every day. Sure, if someone flat out refused to pay their loan back, the fees would keep adding up. The same is true, however, of traditional bank loans, but you don’t see a lot of online stories complaining about the big banks, right?
The final thing that we will talk about in this payday loans online for dummies guide is credit scores. If you have a low credit score (usually any FICO score lower than 601) it is almost impossible to get approved for a traditional loan or line of credit. People with bad credit often ask if payday lenders will turn them down because of their credit scores. The answer to this question is a resounding “No!” Payday lenders do not check anyone’s credit score when they are approving loan applications. People simply submit some basic information on the lender’s website, and that’s all there is to it. Even people who have had to file for bankruptcy in the past can get almost instant access to cash via the top online payday lending companies.
Our Conclusion on Getting Payday Loans via Online Lending Companies
While we cannot cover every aspect of cash advance loans in this payday loans online for dummies article, we hope that you have a better understanding of online short term loans. Payday loans online continue to grow in popularity, and the top online lending companies provide the type of smaller dollar, shorter term loans that are ideal to help people take care of unforeseen expenses quickly.