Getting A Paycheck Advance Online The Smart Way

For those getting a paycheck advance online application sent through the system, they may be counting their pennies expecting an approval right away. These short-term loans are often considered easy money for people who are experiencing credit challenges. Just because these lenders will provide a loan, it doesn't mean you have to take the full amount.

When you are looking to get a paycheck advance through an online lender it most often means that other money opportunities are no longer credible options. These short-term loans are often advertised as no credit check, bad credit check or simply as bad credit loans for a reason. Since the approval process does not include an actual credit check the name is fitting. So there it is, a short-term loan is available to applicants who are credit challenged. Lenders would not look at this factor as a blanket approval to all applicants. There are other qualifying factors which could get an applicant rejected.

Many responsible lenders will expect all applicants to have a certain monthly take-home income in order to qualify. These figures vary from one lender to another. Once an applicant is approved, the direct lender will let them know how much money the loan is approved by. For many states, this amount is regulated along with having an interest cap. Whether the amount is capped or the loan is approved for much more, it makes the most financial sense to any applicant that they accept the smallest amount possible. If you need a loan for $200 but the lender offers $250, do you need to take the extra? The more money you accept, the more money a direct lender will earn. This translates into fees for the borrower. A direct lender will charge a certain percentage of every $100 borrowed. If the interest charge is $20 per $100 borrowed, a $200 loan would entail a $240 payoff just a few short weeks later. If a borrower took out the full $250 offered, the fees jump from $40 to $50 with a payoff cost at $300. When you think about paying off the loan in one fell swoop as expected, you will want to minimize the burden to your next paycheck.

Getting a paycheck advance will help to fix your impending financial problem by bridging a money gap between now and payday. It is important that when you use third party cash to pay off a bill that you only use the right amount to help future problems from entering your budget. Once you work to pay off the loan 2 weeks later, there will be less money to handle the bills due then. It can be a vicious cycle of debt if not handled correctly.

*In order to get an online paycheck advance that you can afford, you will want to search for a lender with reasonable rates and take out only the amount you truly need to get the job done.

*Do what you need to do to pay the loan back in full on the original due date.

*If you cannot come up with the money, do what you can to not only pay the fees but as much of the principle as your budget can comfortably do so.

Everybody gets into money binds one time or another. How these problems are handles is what makes the difference between success and failure. In order to support future financial needs, it is always best to make each transaction successful. There are many types of customers who apply for payday loans. It doesn't take loads of money to pay one off, but it does take someone that will get the payday advance and pay it off quickly to not fall into a cycle of debt.

Online Payday Lender: Protect Your Finances With Best Lenders

When looking for a direct online payday lender to help out with emergency costs, it's important to understand how these loans are supposed to work. The more knowledge you have going into to your search, the better equipped you will be in finding the best lender. There are too many predatory lenders out there waiting for inexperienced borrowers to come knocking on their online doors.

Most responsible lenders will be straight forward with their customers. They are easily reached and respond to questions efficiently. There are never unreasonable demands and will they ever ask for money up front. Some companies get away with applications fees as a way for obtaining extra income. It is important that a borrower knows what to look for during the application process or at least calls ahead to find out if the company charges application fees. There is no need to pay for filling out an application unless it is something you want to do. Most customers have no money to spare. It led them to a payday online lender in the first place. Keep your money safe and by finding a responsible company to work with.

Every now and then there is a story reported about a customer losing money in their search for quick cash. It is always sad to read how the customer is duped out of what little cash they do have. It is important to spread news like this in order to help educate another potential borrower from making the same mistake with this lender or any other fraudulent company.

A woman in Georgia lost $600 of her own money in an attempt to obtain a $1600 loan. Needless to say, the loan money never came in and her initial investment was not returned either. This situation stemmed from a woman desperate to obtain funds, a lack of prior knowledge about how the online payday lending industry works. She talked to the company representative on the phone and was instructed to send almost $600 to cover processing fees for her loan. She was concerned by the request as it was unfamiliar to her understanding of how the industry runs their loans. It didn't sound right and she was skeptical but her desperation to get the loan overwhelmed her.

You guessed it! She wired the money in two separate transactions as the person on the other end of the lined guaranteed that by the time she got home, her loan will be in the her bank account. The representative even stayed on the phone with her all the way home as assurance that the money was coming. As soon as she got online to check her balance, yep, the call was lost and no one was on the other end. It was too late. There is no retrieving the wired money and this unfortunate customer found herself in a worse situation.

To help prevent additional problems, she cancelled her bank account that was associated with the online application. This would prevent any further problems with fraudulent withdrawals.

It's a hard lesson to learn. This woman knew it sounded wrong but went ahead and fell into the fraudulent trap. She will never make the same mistake twice. If her story can help to educate others from falling into similar traps then it will give some value to her loss. There are many responsible direct payday lenders online who will not make any attempts to misinterpret their intentions or take unnecessary funds away from their customers, but they may also reject your application. Part of being a responsible lender is not only following best practices during a loan transaction but will also deny loans to some applicants for not meeting standard qualification guidelines.

Why Is The APR So High on a Payday Loan?

Unless you have been living under a rock for the past year you will have noticed the rush of companies that are fighting to offer you a short term loan. Usually called payday loans, these lending solutions provide extremely short term loans for people that need a top up to get them through to the end of the month. The loan terms are usually 1 month but they could be as short as two days or as long as three months.

Are payday loans a bad thing?

The short term loan providers have come under intense criticism, some of it justified and some not. The main criticism has been because of the apparently massive interest rates they charge. There is no doubt that payday loans can be a dangerous thing if the customer doesn't understand them but the incredibly high representative APR values that are quoted are really not a true reflection of what you are actually going to pay.

You have to realise that these payday loans are only a short term solution. If you rigidly stick to the terms and conditions of the loan and pay back the amount you borrow and in the agreed timeframe then you will typically pay around 1% per day. The key is to pay the loan back on time, if you can't pay back on time then you should contact the lender as soon as possible because you will likely pay charges if you fail to pay back within the agreed time frame.

So why is the representative APR so high?

The representative APR is a figure that is used to compare loans and other banking products. It is a representative figure that shows the interest you would pay if your loan term was a single year. Representative APR values of short term loans are typically in the thousands of percent range. This looks like an incredibly high and scary number when you compare it to the relatively low values stated by credit cards or a standard unsecured loan but really the representative APR value of a payday loan is a completely nonsense value. It is only useful to compare the short term loans against each other.

You will never, ever pay 5000% on your payday loan even though the representative APR is shown to be 5000%. The loan term is never going to be anywhere near a year, it will more likely be one month. The representative APR that is stated is calculated by scaling the daily percentage up to a year and showing you what you would pay back if that same loan was paid back over the period of a year.

Show me an example!

The example below shows how a representative APR of 5000% equates to a much lower pay back than expected if the loan term is 30 days.

Day rate % = (representative APR/365) * (loan term/365)
Day rate % = (5000/365) * (30/365)
Day rate % = 1.13%

Say for example you borrowed $100. You wanted to pay back your $100 over one month or 30 days. So over the 30 day period you would pay back your $100 plus 1.13% per day. You would pay back a total of $133.90 spread over the month, roughly $33.50 per week. There are also usually admin charges on top of this as well so you would pay back slightly more but I am keeping the numbers simple!

As you can see from the example above, although the lenders are told that they have to display the representative APR value, it is really a useless number. A more accurate figure to assess what you will actually end up paying back is the daily percentage rate that the lender charges. This will typically be around 1% but some are a little higher and some are a little lower.

So are payday loans as bad as they seem? Not as long as you pay the loan back in the agreed time frame. You should assess the product over the term period of the loan rather than just looking at the stated representative APR value, which is completely inappropriate for these types of product.

Direct Payday Loan Lenders: Use The Monkey Wrench to Fix The Problem

There are many people who live paycheck to paycheck and depend on fast direct payday loan lenders in order to make ends meet. The added expense of obtaining such quick cash keeps these borrowers at the mercy of outside money help. Even if these loans get paid on time, the added interest expense of the initial loan will often place a monkey wrench into future expenses.

Personal budgets will often divvy up bills according to due dates and assign certain paychecks to cover the costs. People who get paid bimonthly will most often split their payments in half so each paycheck will cover a certain bill. For those who get paid each week, they will often have to set aside funds to be used at a later date. When living expenses take up most or all of the monthly income, there is little room for any additional expense. When a person applies for cash with a direct payday lender online extra costs are guaranteed. How fast the borrower is at paying it off will help to prevent increased costs. The initial interest fee is difficult enough to afford when your next paycheck is already claimed by other scheduled bills.

Once that wrench is placed into finances, it is a struggle to recover. Unless borrowers are able to pick up extra work or borrow from a family member or friend, money problems will often decline rapidly. Short-term lenders collect payments every two weeks on average. There isn't much time to recover from one payment before the next pay date arrives. Borrowers are expected to pay all fees as the minimum payment. Unlike minimum charges for credit cards, high interest loan fees are much more damaging to an average budget. Too often, these borrowers will obtain a new payday loan in order to recoup from the prior one. It's a deadly cycle which will only continue to eat away at the little available funds.

Is it possible to avoid additional financial hardship when utilizing a direct payday lender for emergency costs? There are many borrowers who do pay their loans off successfully. In order to experience a successful payoff, you must start out with a payoff plan as well as find a responsible lender.

Find a Responsible Lender

Search for a responsible lender. Direct your attention to a direct lender that has competitive interest fees. For every $100 you borrow, you will have a set fee attached to the full payoff. Lower interest equates to lower fees which makes a full payoff that much easier. Any company which does not provide free applications should be denied access to your bank account. These charges come out whether or not you are approved for a loan. If you are going to accept to pay a direct lender for quick cash, make sure this lender has provided an actual money service.

It is also important to read and understand terms and conditions. If you don't agree to the company's terms of service, then don't feel pressured to accept the loan. With all of the responsible lenders out there hoping for your business there is no need to stick with one you are uncomfortable with.

Talk to the company representative directly. A phone conversation will provide you with a good feeling about the company's customer service. Address any concerns and ask for service clarification so you are comfortable with the direct payday lender company you borrow from.

Payoff Plan

Because of the fast payoff pace of short-term loans, borrowers will find much more success if there is a payoff plan in place at the time of the loan. If you realize on payday that there is not enough money to make all the necessary payments, financial failure is inevitable. Try to earn extra cash during your two week term. Many borrowers will sell unwanted personal property. You may not earn enough to foot the bill, but any amount brought in to supplement your paycheck's demand will help. You may not have a friend or relative who will lend you the full amount, but if you are only shy a small portion and have a plan to prove to them you are working on obtaining the cash, you might just get the necessary relief.

Take every aspect of the direct payday lender's service in a serious manner so you not only avoid further financial problems but use the fast cash opportunity to change the outcome of your money emergency.

Cash Advance Lenders: Search Applications for Good Customers

Individuals 'strapped for cash' are the stereotypical online cash advance lenders best customers. Great customers are not necessarily those who are desperate or vulnerable to financial situations. In order to be a good customer, the loan must be paid off. It may not be a perfect payoff, but done in a reasonable amount of time.

Income

Best cash advance lenders online evaluate applications. The old standard thought that anyone can get a short-term loan is just not true - at least not with a responsible lender. Predatory lenders who thrive on a customer's vulnerabilities may just accept whoever applies; but for a typical online direct lender, there are qualifications which must be met.

A person's income is used to base the actual loan amount. Since your next paycheck is targeted for a full payoff of the loan plus fees, a direct lender will want the borrower to be able to afford the bill. Without a credit history check, the lender will only have this income to go by when approving a loan. The bank statement will give the lender an idea of how many other bills are being paid throughout the month, but the deposited income is key to short-term loan affordability. The actual loan amount approved will also depend on any state regulation. The borrower will have to be responsible themselves when applying for a loan. The amount must be an affordable cost in order for to be of any real financial help. Sinking further into debt troubles with a short-term cash online lender is disastrous.

Short-term loan history

With no standard credit check, a borrower can hide problem debt areas. Now, the direct lender knows that the average borrower has debt problems. Most people don't choose an online loan over credit cards. It is safe to say that the majority of applications come from those who are credit challenged. What a direct lender does look for in an applicant is one that has a positive history with cash advances. If you have recently gone bad on another short-term loan, chances are that a new lender would not want to work with you. Responsible lenders will not want to add to the already high risk activity involved in the direct cash advance industry.

Working bank account

With online lending, it is important that an applicant has a good standing bank account. Whether a bank statement is sent in or Decision Logic (online viewing access) is used, a direct lender will want to verify that the bank account is in good standing. The account should be running long enough to have your employer set up direct deposit and show a history of those deposits entered electronically. The cash advance online lender will also want to see your account clear of returned checks, NSF fees, and overdraft charges. If you can show that you manage your finances well, the direct lender is more apt to approve a short-term cash advance loan.

Before you set your sights on applying for an online loan, take a few moments and view your application from the point of view of the lender. What do you see, what does it mean and how can you improve your chances at getting your emergency loan approved? If you choose to work with a predatory lender then you won't have many worries within your application. Don't be surprised if you hit some bumps along the way if you do choose that avenue.

Just like any other money opportunity, take a few moments and find a responsible cash advance direct lender in order to insure the best loan experience possible. It the company happens to turn down your application for fast cash, find out why. Some lessons are learned the hard way, but if it makes your finances better in the long run, make necessary changes.