How Online Payday Loan Lenders Are Putting Many Retail Cash Advance Stores Out Of Business

Dec. 15, 2011 - PRLog -- According to a recent study, online payday loan lenders are gaining more market share than their retail competition. While the percentage of payday loans issued is still dominated by retail outlets, more and more consumers are making their way online to get short term loans.

The biggest factor behind this trend is convenience. Instead of driving across town, waiting in lines and filling out a bunch of paperwork, consumers can fill out a single form online and get instant approval for a cash advance. This is the single biggest factor as to why consumers shop online. It’s simply more convenient.

Not only are online payday loan lenders more convenient than retail outlets but they are generally able to offer a more competitive rate. This is because they have less overhead in their business model and don’t have to pay for rent and utility bills. Since they don’t have the extra expenses of operating a brick and motar store they are able to offer better deals.

Another reason online payday loan lenders are typically able to offer better rates is that they have much more competition. When a consumer fills out an online application there will typically be several lenders competing for the rights to issue that loan. Lenders know they must offer the most competitive rate in order to win the bid therefore consumers are typically able to get the best rate possible when dealing with online payday loan lenders.

It is estimated that around 90% of cash advance loans are still taken out at retail locations but the online payday loan lenders are quickly stealing market share as online shopping becomes more mainstream. Many Americans used to have fear submitting personal financial information via the internet however this is becoming less of a concern as online security systems have strengthened. There are still some criminals out there on the internet so be careful but 95% of online shopping is safe.

Cash advance payday loans should not be overused but they are a convenient option to access fast cash before your next payday. Most of these loans carry a finance fee of around $15 for every $100 that is borrowed. While this might seem like an excessive cost to borrow money it is often cheaper than incurring fees on other unpaid debts. Late fees on credit cards, mortgages, and automobiles all carry fees which range from $25-$75 therefore just a couple of these fees can easilly exceed the finance charge on the payday loan. A basic rule of thumb to use is that if the cost of not getting the short term loan exceeds the cost of the loan than it makes financial sense to get it.

Instead of waiting in line at your nearest cash advance location it is much easier to apply for a loan online. Using a matchmaker service such as CashAdvanceSelector.com is the most convenient way to obtain fast cash before your next payday. They are one of the biggest and most respected payday loan matchmakers in the industry. It is a completely free service and typically customers are able to get a better rate than going directly to a lender because multiple lenders are competing for the loan rights.

Check out the following link to find the best rates on a cash advance loan in your state:

http://www.cashadvanceselector.com

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CashAdvanceSelector.com is one of the largest and most respected payday loan matchmakers on the market today. By making lenders compete, we have consistently offered the best rates on online payday loans.

http://www.cashadvanceselector.com