The very idea of getting a payday loan is enough to turn some people off. You can see or read all over the internet how bad payday loans are. Borrowers are warned to avoid this type of loan because it might get them into a bad debt cycle due to the loan’s expensive rates. Payday lenders that prey on unwitting borrowers also have a high presence online.
People see smoke, so it’s likely there’s fire. And we shouldn’t deny that there are disadvantages to taking a payday loan. But if you badly need to borrow money, online payday loans are one of the most accessible types of loans right now. If you’re looking for reasons why you should get an online payday loan, read this blog post.
Simple Application Process
Online payday loans by their very name mean that you need not go to a physical lending office to borrow money. Since the transaction is online, you can just use your phone or laptop to find a lending network and apply for a loan. Make sure to look for an online lender with a trustworthy record.
Many online lending networks provide an online application form to be filled up by the borrower on their websites. This will only take a few minutes. Most probably, you’ll only spend more time looking for online lenders, especially if it’s your first time.
When searching for a lender, you need to see reviews about its lending business. This is to ensure that the lender can be trusted. Another tip is to avoid offers that are too good to be true because it’s likely a marketing trap. You can check siloans.com if you’re looking for an online lending network and loan advice.
Quick Fund Transfer After Approval
Many online payday lenders can be accessed 24/7. If you need money to cover an emergency expense, an online payday loan is a good option for you. Although online payday loans have higher interest rates than other loans, their accessibility makes them a popular choice among borrowers.
Once your loan application is approved, you’ll also receive the money right away. The lender will transfer it to your account right after the approval of your loan application. Indeed, it’s good to consider this type of loan to cover urgent expenses.
For instance, if you have an emergency expense and you’re yet to receive your salary, an online payday loan can help you cover the cost in the meantime, and then you can pay back what you owe when your salary arrives. An online payday loan is also useful to pay for urgent hospital bills.
Online Payday Loans Can Be Used for Various Purposes
Online payday loans are unlike home loans or car loans which the borrower can only use for a particular type of expense, namely to buy a house or car. You can use online payday loans for whatever purpose you have in mind. Most borrowers use this type of loan to cover utility bills, medical bills, car repair, or groceries.
Borrowers Can Choose the Loan’s Duration
Another benefit of an online payday loan is that you can choose the duration of your loan. Yes, payday loans only have a two weeks duration, but most online lenders now offer to lengthen the duration from two weeks to two months.
Online payday loans can be categorized as short-term loans. Unlike long-term loans, the advantage of short-term loans is that you’ll only worry about the debt for a short period. The catch is that online payday loans have higher interest rates. So, it’s advisable to think twice before getting this loan type.
Make sure to conduct an income assessment before deciding to borrow. Don’t get a payday loan if you can’t afford the whole cost of it. Moreover, don’t go for an online payday loan with a longer-term if you only need the cash for two weeks.
Online Payday Loans are Regulated
Today, there are checks that prevent payday lenders from charging unreasonably high-interest rates and fees. In Canada, loan rules and regulations vary between provinces and territories.
These rules make payday loans cost and terms to vary in each location. It dictates what lenders can charge, how much you can borrow or if you can borrow up to two or more payday loans.
Borrowers Can Track Their Payments Online
Online payday lenders now make it easier for borrowers to track their payments and get notified about their payment date through an online account that can be accessed via smartphone. With this, you can ensure that you can pay your loan on time and avoid getting into a bad debt cycle.
While it’s true that online payday loans are expensive, there are benefits that you can weigh in case you badly need to borrow money. You only need to be extra cautious about picking a payday lender since many payday lenders right now are charging exorbitant rates.