Emergencies can arise at any time. This is the most common reason for applying for a payday loan online. For those who live paycheck to paycheck there are not many options available to get cash and even fewer options available to get cash the same day. Traditionally, an individual who needs money the same day would head down to the pawn shop or title loan company to apply for a secured loan, but there are disadvantages to these kinds of loans. By far the easiest and most convenient way to raise quick cash the same day is with a payday loan online. Before we look at the topic of a payday loan online, let’s take a moment to look at the inherent problems with other types of loans.
A secured loan is one in which the money borrowed is secured by some kind of collateral, such as a vehicle title or asset. Loans originating from a pawn shop or title loan company would fall under this category. These kinds of loans can be inconvenient because the borrower must take the item that will be used for collateral to the establishment facilitating the loan in order to prove the asset is worth the money being borrowed. Failure to pay means loss of the asset.
In the case of pawn shops, full possession of the asset is taken over by the shop until the loan is paid. Pawn shop loans do not yield much cash. Generally, the borrower will receive about half the money the asset is actually worth.
In the case of title loans, a lien is placed against the title of the vehicle and the borrower may still use the vehicle. It is important to note that title loans may not be obtained for vehicles on which the owner is still making payments.
Title loans are based on how much the vehicle is worth. The downside to these kinds of loans is that the borrower may be tempted to borrow more than they are able to pay back, which will result in loss of the vehicle. Title loan companies typically do not discriminate on this issue. If the borrower is unable to pay, they lose their vehicle and this can mean even worse financial problems if that is the vehicle used to get them back and forth to work.
Traditional Payday Loans
A payday loan online is one in which the loan company allows an individual to borrow money under the premise that it will be paid back out of the individual’s next pay check. When the loan comes due, the borrower has the option of renewing the loan by paying just the interest that has accrued, with the option of also paying some on the principle in order to reduce the amount of interest accrued next time the loan comes due. This allows the borrower to pay out the loan over several pay periods rather than just one.
Payday loans do not need to be secured by a vehicle title or other asset. They work on the premise that the borrower’s banking and financial information are verified and, when the loan comes due, the money is deducted from the borrower’s checking account on the day they get paid. The borrower need only be signed up for direct deposit and not borrow more than their next paycheck. Even those with bad credit are normally approved for this kind of loan. You can learn more about bad credit payday loans by visiting our blog.
The only downside to this kind of loan is the need to gather documents, take time off work, and head down to the payday loan branch to show proof of income and residency.
Payday Loan Online
While a payday loan online is very convenient, online payday loans are by far the fastest and easiest way to get quick cash the same day. An individual can log onto the payday loan website and have money headed to their bank in less than ten minutes without the need to even get out of their chair. It’s that easy to get cash from a payday loan online the same day.
In order to apply for a payday loan online, the borrower needs to log onto the payday loan website and create an account. The website will ask for banking and employment information. This is all done over a secure server so there is no chance of identity theft. Once the information is entered, the website will tell the customer within a few seconds whether or not they were approved.
Once approved, the website will then ask for payday loan online information, such as how often the borrower is paid, how much they are paid, and the date of their last paycheck in order to calculate the date of the next paycheck.
Once all information is entered, typically the borrower will receive a call from a representative at the payday loan online company who will facilitate a conference call with a representative at the borrower’s bank. This is done simply to verified information and only takes a minute. After the conference call, the customer needs only to electronically sign their loan documents and the money is on it’s way to their bank account.
For quick cash the same day, the convenience and efficiency of a payday loan online cannot be beat. There is simply no other way to apply for, be approved for, and receive cash the same day from the comfort of home.