PRLog - Jan. 26, 2012 - The popularity of online payday loans across the globe is easy to explain. Consumers need them, it’s that simple. Online payday loans solve problems. Unexpected expenses comes up, maybe it’s the injury of a child, maybe your car breaks down, or a friend has an emergency and needs your help…whatever the emergency, you need cash now. The problem you run into is that you don’t get paid for another two weeks.
Online payday loans will come to the rescue. They will solve the problem. In the U.S. or the U.K. it can provide you loans all over the globe.
Modern banks with their roster of products are not set up to help you with a financial emergency such as a car breakdown or medical emergency. They want collateral and they want a couple of days to mull over your application. The beauty of online payday loans is that they are fast and require no collateral.
The process of obtaining payday loans online couldn’t be easier or more efficient. Fill out a brief application and you will have your approval in seconds. Your money is in your account, available to use, in most cases in an hour. This is all done from the comfort and privacy of your own home, you fill out one five minute application and you’re on your way to solving your problem.
You may ask, “what if my credit score is bad?” That’s not a problem with payday loans online. No credit checks are required to obtain a payday loan online. So the reason for your bad credit score doesn’t matter. This is even better when you consider that many banks will want to know the circumstances of your poor credit history and no one wants to have to re-hash the bad times of our lives. With payday loans online, you don’t have to. Payday loan lenders realize that even people with less than perfect credit have unexpected expenses.
The payday loan business is not perfect. There are those that accuse the payday loan industry of gauging the public because the APR’s are high. It’s true, some lenders are predatory and should be penalized. Read you contracts thoroughly. Make sure you don’t do business with operations that appear predatory.
Some also say that the APR’s on payday loans are too high. This is not accurate. Let us explain.
Payday loans are available quickly and without credit checks. The very purpose of them is to provide cash fast. If your child has a broken arm, it can’t wait till your bank processes your loan application. You need the money now.
For this service, consumers incur a service fee. Since the loans only last a couple of weeks or maybe a month in most cases, it seems a little unfair to apply an “annual percentage rate” doesn’t it? Look at the next two examples for an illustration of the point.
Does this happen with other industries? For instance, when you rent a car are they forced to disclose how much the car would cost if you pay the rental rate all year? Of course not, because you only use it or a week or two.
When you bounce a $10 check and the bank charges you $35, do they have to show what the annual percentage rate is for that product? Of course not. It’s a fee, it’s not a percentage rate.
Speed and convenience are two prime benefits to online payday loans, another is flexibility. You can use the loan however you see fit. This exposes another problem of big bank loans, which is that many of their loan offerings pre-determine how you use the money. Payday loans do not. Need help with holiday shopping bills? No problem. Problem with your car, or maybe you need to go to the doctor? No problem with online payday loans.
People often ask if they are eligible for payday loans if they work part time. The answer is yes. Online payday loans will require the applicant to have a certain level of income, but most people who work part time will meet the criteria.
Other requirements include U.S. citizenship, be an adult of at least 18 years of age and having a valid checking or savings account. Since there is no collateral to be put up with payday loans, no credit check is required. Online payday loans are designed to be fast, convenient and flexible. The loan application process reflects that.
Online payday loans are the product that the big banks have forgotten. They are a much needed product for people who face a financial emergency. Sure big banks, offer home equity loans, but you have to own a home and have pristine credit. They also offer personal loans, but again, you need nearly perfect credit and you have to put up collateral. They miss the very point of a financial emergency. They miss out on the speed, efficiency and flexibility of payday loans online.
Consumers also ask how much money they can borrow. Most online payday loan outlets will lend up to $1,000. Some a little bit more, some a little less. Whatever you borrow you want to make sure that you are able to pay it back with your next paycheck.
Payday loans online are meant to be short term solutions, not long term debt.
So sit back and relax, the stress of a financial emergency is about to go away.
That may be the biggest plus of an online payday loan – online payday loans are the ultimate stress relievers. They solve problems.