What Are the Differences Between an In-Store Lender and an Online Payday Loan
Most of us know that there are two ways of getting a short-term loan, you either opt for an online payday loan or go to an in-store lender. While your experience might be similar, they both differ in a few key aspects. Read on to find out the significant differences between them, and which one you should choose.
Must Read: Why Borrowers Choose to Apply for Short-Term Loans Online than In-Store
Online (payday loans online) vs. In-Store Lenders: Which One to Choose
When visiting a loan store, you first have to look up where they are and then drive to the location to complete an application. You have the benefit of speaking directly with the lender at the store, and this may be helpful as some people prefer face-to-face transactions. But you are paying gas and using up time driving around, and if you can’t get a loan at your first stop, then you end up driving all over hoping someone will approve your request.
Whereas, an online payday loan is much faster and easier because you fill out the loan request right from your smartphone or other device and you get referred to a large number of lenders. This increases your odds of approval and potentially gives you more options. Lenders are competing for your business which isn’t the case with the in-store lender… you are what they call a “captive customer.”
Watch This Video: Payday Loans Online for All Your Emergency Needs
Speak Directly and Be Sure to Ask Questions That You Have
You are going to speak directly to a lending consultant when you apply for online payday loans. Also, the lender is going to call you as soon as you are approved, usually within 1-2 minutes after you receive the online notice of acceptance. Be sure to ask any questions you have about your fees or the process in general. You are not obligated to accept any loan offer. They will also provide you with contact information, which you might need to use in the future.
Related Article: Can You Get $1000 Payday Loan Online in 1 Hour?
Check Your State’s Regulations for In-store Lenders and Online Payday Loans
In both cases, if approved, your money is in your bank account in one business day. However, you may live in a state where there are no in-store lenders. In-store lenders have been closed down in many states and are no longer allowed to do business in as many as 15 states. Your only option may be online. That said, even online lenders cannot make loans in certain states due to state regulations.
Also Read: A State-by-State Guide to Payday Loan Interest Percentages
Therefore, check your state’s online portal to learn more about your state. Every state has different regulations about online payday loans. This means the amount you can borrow may be different depending on your state as well as how much you can be charged for your loan and so on. Whatever you decide, get informed and be prepared with your list of questions to ask any prospective lender.
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