Online Payday Loans: Some Frequently Asked Questions
Today's fast-paced world has made online loans extremely popular with consumers looking to get quick cash. When you need money to cover expenses that pop up between paychecks, you should consider online payday loans. Online payday loans are short-duration, small-amount personal loans that you usually pay back on your next pay day. These types of loans are popular because they are easily accessible, even with a low credit score, and get approved very quickly.
Read on to find the answers to some of the commonly asked questions about online payday loans:
What Are Payday Loans Online?
An online payday loan gives you the flexibility of having your loan processed entirely online without the need to visit any local store. All you need are an Internet connection and a couple of minutes for filling the online application form. Simply fill out and submit an online loan application. Once approved, your funds will be deposited directly into your bank account, as soon as one business day.
What are the Popular Payday Loans Myths?
Here are some popular payday loans myths:
Borrowers will be trapped forever in debt
As long as you pay back the loan amount on time, you will not have to bother about any debt. Most payday loans are required to be repaid within two to four weeks.
Targets low-income households
Online payday loans are available to anyone who needs them and does not target any specific income bracket ever.
Higher than normal interest rates
The state government regulates the payday loan industry, and they put restrictions on interest rates in their respective states. Also, interest rates on these short-term loans are quite reasonable when compared to a few other loan types for the same duration.
Consumers are misled by hidden fees
All fees should be spelled out in terms of the agreement. You can always clarify your doubts by questioning the lender or choose another lender.
More loans mean higher commission for lenders
Contrary to what many people think, lenders don't receive a commission for closing a short-term loan.
Why Payday Loans Are a Good Source of Emergency Cash
Payday loans are a good source of obtaining emergency cash because of its accessibility. It is an excellent alternative for individuals who have a bad credit history and a poor credit score and have no other way of raising money. You just have to provide your bank account details and your regular pay stubs to the online payday lender. Once your loan is approved, the lender will transfer the funds directly into your bank account.
What is the Payday Loan Debt Cycle and How to Get Out of It?
When you default on a payday loan and choose to take out another just to get by, you may end up taking an additional loan with more fees. If a series of payday loans continue, the debt amount will start to pile up.
You can get out of a payday loan debt cycle and avoid huge debt by using the right strategy and proper planning. A few strategies include:
- Keep track of where the major part of your money is being spent.
- Concentrate on tackling debts with the highest interest rates first.
- Consider extended payment plans.
- Turn to credit counseling.
- Use a personal loan.
Read the full blog post: https://www.cashone.com/blog/tips-to-avoid-payday-loan-debt-cycle
How to Calculate a Payday Loan APR
Here’s how the APR on any loan with a single repayment is calculated, including a payday loan:
- Divide the cost of the loan (interest and financial charges) by the amount borrowed.
- Multiply that number by 365.
- Divide the result by the term of the loan in days.
Why Choose CashOne Over Any Direct Lender for Online Payday Loans?
CashOne provides a quick and stress-free way to request a payday loan online. We are not direct lenders but we help you receive money from direct online lenders with ease through our reliable lender connection services. When you access our vast lender network, we protect your personal information with advanced encryption. The lenders in our network serve customers with all credit types, so you may still qualify for a payday loan, even if your credit score is less than perfect.
You can easily and quickly submit the online loan request form on our website and receive a loan approval in a couple of minutes. Once approved, your money will be transferred to your checking account as soon as the next business day.
Fill out our convenient online payday loan request form to get the funds you need!
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