Safe Online Payday Loans
Consumers who have never used a payday loan company before, and who have never taken out short-term loans may be apprehensive about such a non-conventional way of borrowing.
But roughly 12 million Americans opt for short-duration funding and like traditional loans from banks and credit unions, there are restrictions placed on the industry that can protect consumers, making it easier to avoid unscrupulous lenders.
How Do I Know it is Safe?
Independent reviews and consumer websites such as Trustpilot can help consumers determine how trustworthy and safe an individual payday lending service is.
Borrowers should also note that payday lending is regulated by the state, meaning that there are laws and limitations in place by each state to help protect consumers from predatory lending practices. Payday lenders and borrowers alike are required to abide by their state’s lending laws.
Some of the small-loan factors that are limited by each state include:
- APR: this means how much interest can be applied to the loan
- Term of the loan: how long it can last, both as a minimum and maximum
- Fees applied: this can stop payday lenders from charging huge fees
- How much can be borrowed: this can help to prevent consumers from borrowing what they might not be able to afford
If a payday lender does not abide by their state’s short-term lending regulations, it might indicate predatory lending practices. Borrowers can report instances of fraudulent lending to their local state governments, and avoid taking out loans from such lenders.
In some states, payday lending has been banned altogether. In such states, payday lenders are prohibited from operating and should be reported if done otherwise.
What Are Payday Loans For?
Payday loans can be used for a number of emergency cash needs such as unexpected medical costs, unpaid utility or rent bills, unforeseen home or vehicle repair costs, and emergency child-related expenses. While short-term loans can be a way to mitigate monthly expenses until the next influx of cash, they should not be used for longer-term financial needs.
Consumers should note that payday loans can often carry high fees and APRs that make them expensive and often difficult to pay back. In some cases, individuals may need to take out more loans to cover previous ones, which can trap borrowers in an unsustainable cycle of debt. Financial experts advise that borrowers only take out short-term loans if necessary and if they can be repaid.
There are alternatives to payday lending that consumers can consider as well. Borrowers can opt for an installment loan, which can be paid back over a longer period of time. Consumers can also speak to a financial advisor, who can provide tools to better save, budget, and manage money.
Finding Secure Online Payday Loans
Consumers who are at least 18 years of age and who are United States citizens or permanent residents can apply for a secure online payday loan.
Online application processes can take as little as 15 to 60 minutes. Borrowers should be sure to provide necessary documents upon loan application. While requirements may differ from lender to lender, most will ask for proof of age and residency, proof of income and banking information. Lenders will also typically check an applicant’s creditworthiness to determine loan approval.
Payday lenders typically have local regulations that they must abide by. Consumers can check their state laws and regulations regarding payday lending before opting to borrow money. Payday loans can be quick and once approved, funds can be deposited in a borrower’s account within two to three business days.
Our service can help to provide appropriate, safe, and trusted payday lenders.