August 8, 2019
Have you ever found yourself in a bind and need cash quickly? I sure have. Whenever you ask everyone’s favorite assistant, Google, for quick payday loans, you likely are presented with links upon links for an online loan. This one says “same day payday loan,” that one says “online payday loans for bad credit,” and you don’t know what to click! Well, the answer is actually quite simple: none of them.
What are Online Payday Loans?
An online payday loan is essentially the same thing as a regular payday loan, but everything is done over the internet. This makes it easier for everyone, since you don’t have to leave home and the lender can conduct business from a computer rather than an office. You can apply for a loan right on the lender’s website, and then your application is reviewed. If you are approved, funds will be delivered to your account as a direct deposit.
When seeking payday loans online, same-day options seem tempting because they promise an easy and speedy delivery. Other companies market themselves as online payday loans for bad-credit-borrowers, and promise to consider an applicant with low credit or skip the credit check altogether. However, online payday lenders often don’t follow through with their promise of speed. Additionally, high interest rates and fees plague these types of loans, particularly ones that are marketed to those with bad credit.
“High interest rates and fees plague these types of loans, particularly one that are marketed to those with bad credit.”
Beware of Deceptive Promises
If you find yourself in need of payday loans online, same-day options may seem appealing if you need cash quickly. Many lenders advertise that the money will pop up in your account some time that evening, around 5 p.m. However, there are many cases where the lender does not follow through. Transferring money is unpredictable, since the bank may take a while to receive your request. Also, less established lenders may engage in false marketing, so the funds will not arrive until a later date. So, understand that if you need payday loans online, same-day promises aren’t always kept.
Other lenders promise online payday loans for bad-credit borrowers. They say the application won’t affect your credit or your application will be considered regardless of your credit history. Other payday lenders don’t even check credit. But, beware! Lenders that don’t check credit can have APRs as high as 400%. Let’s do some math: If you take out a $500 loan over 2 months, you’d end up paying over $250 in interest. That’s more than half the original loan!
Let’s also not forget about hidden fees associated with online loans. First of all, there’s generally an application fee for payday loans, which can vary depending on the lender you use. If the lender attempts to take out funds from your bank account on the repayment date but you don’t have enough money, you could incur an insufficient funds fee from your bank, which is usually around $35. Rollover fees can occur if you need more time to pay back your loan, and vary by lender. You’ll be charged for extending the due date of your loan.
Alternatives to Online Payday Loans
If we’ve convinced you to stay away from online lenders, be informed of the alternatives!
Standard Payday Loans
You’re probably familiar with standard payday loans; the ones that aren’t online. However, these loans have many of the same problems online ones do; high APRs and fees. We’d suggest you stay away from them.
Payday Alternative Loans
Payday alternative loans are generally a better option than regular payday loans. The APRs on these loans are capped at 28%. Unfortunately, if you are looking for quick cash to cover the gap between paydays, this isn’t ideal since repayment periods are much longer than a standard payday loan; usually months.
Cash Advances
If you have a credit card, cash advances allow you to obtain a quick loan from an ATM or bank. Unfortunately, many fees are associated with cash advances, including ATM fees, bank fees, and cash advance fees determined by your credit issuer. Not to mention, there’s super high interest!
Brigit
If you’re looking to bridge the gap between your paychecks, do it with Brigit! This app provides advances with no interest and no hidden fees. If you have bad credit, you’re in luck, because Brigit does not consider your credit history!
