Online Payday Loans

Online payday loans are unsecured loans provided to people in employment who require relatively small amounts of money, generally up to a maximum of $1,000 - $1,500, but mostly a lot less. The repayments are made by direct debit, or other means of automated payment from the borrower’s bank account on the next payday – hence the term online 'pay day loan'. The repayment includes the interest, or fee, and this can be at quite a high rate.

Such forms of finance are generally needed when you are faced with a sudden unexpected expense, and normally one that cannot be ignored. An example could be large car repair bill, a wedding or an unexpectedly high medical expense. Many people would normally meet these expenses with a credit card, but what if you don’t have a credit card or if yours is maxed out already? What do you do then?

Perhaps your car is essential for your work, and you have no option but to have it repaired. Where is the money to come from? An online payday loan is what most opt for since they can pay it immediately next payday with an interest rate they know immediately. No worrying about increasing interest rates on longer term loans! You know right away what you are paying next payday.

If that leaves you short then you can take out another online payday loan, and pay that the following payday, and so on till it is all paid up, though the sooner you can clear the whole debt the better.

However you look at it, online payday loans are the answer to the problems of many people. The main advice is to pay your loan of as soon as possible, since the longer you take the more interest you will pay. However, for seriously neeeded fast loans, online payday loans are the answer, and you can find some of the best and most understanding lenders on this site.

When temporarily short of ready cash, payday loans online are what many people opt for. On the face of it they appear to be a fairly simple idea: you borrow what you need and then pay it back at the next payday. It is a very short-term arrangement to get you out of a hole. In order to reduce the possibility of you defaulting, the lender arranges to take the payment from your bank account on payday, when it is reasonable to assume that there will be money in your account.

Online Payday Loans: Benefits

Payday loans definitely have some benefits that, to many, outweigh the disadvantages that will be discussed shortly. Here are the main benefits that render them very attractive those that have no other options to raise the finance needed:

You won’t have a credit check. No matter how bad your credit score, it is irrelevant, and this is the #1 advantage to a lot of people who would otherwise not get an unsecured loan. If you have a bad credit record, then a payday loan online application is the ideal way for them to raise finance.

Nobody knows about it. You don’t need anybody to guarantee anything for you or to sign forms for you. Online payday loans are even more discreet because you don’t even have to take the chance of being seen walking into a loan office.

It’s not only discreet but secure, since you won’t have to divulge any of your financial details other than your bank account details. Your credit card number remains secure, and even with an online application for a payday loan you will be able to keep most of your financial details to yourself.

It’s quick. In most cases you will have the money in your bank within 24 hours. You need a payday loan because you need the money urgently, and the lenders will oblige by depositing the money into your bank account within a day.

There are no hidden extra costs, and you know how much you have to repay. You can make your decision based upon that information: if you don’t like the deal then don’t take the loan. The repayments will be based on your income and you won’t be asked to pay more than you feel you can afford. Naturally, however, the less you can afford to pay then the lower will be the loan you are offered.

And that is it. In about fifteen minutes of deciding that you need an online payday loan your application will have been made and you will be waiting for the money. It is a quick fix to a compelling need for finance. You will pay the whole lot back next payday, and since the payment is coming out on payday, you shouldn’t default on it.

Online Payday Loans: Drawbacks

Every good thing could have twist in its tail, and the same is as true of online payday loans as anything else. What if you can’t pay the loan back when payday comes? That can happen because you still have your normal weekly or monthly expenses to meet, in addition to paying back this loan. Where is that extra money going to come from? No matter, you can roll it over: payday loan companies allow you to “rollover” the loan till next payday, though you pay more in interest of course.

Payday loans online tend to have a fairly high interest rate, although it doesn’t seem like that at the time. The interest is generally stated as a ‘fee’ and if you borrow $200 you might pay a $25 fee, so you pay back $225. If you work it out it is 325% interest over a year – i.e. the APR is 325%. Quite a lot, but then if there was no other way you could see to get you out of your fix then that wouldn’t matter to you, and you would be glad of the service.

However, if you keep missing payments the rollovers will progressively build up until you owe twice what you borrowed. There is at least one company that keeps control over this though.

Payday Loan Today stops charging rollover fees after two month's missed payments, and gives you the chance to rescue the situation before it becomes impossible for you. They understand that it's not to their benefit to keep hitting you with increased non-payment fees until you just give up with no hope of paying.

So, the message is clear. A payday loan will get you out of a fix till next payday, but make sure you pay it back next payday, and not the payday after that, or the payday after that, or you will find yourself owing twice what you borrowed unless you borrow from an understanding lender.

That’s the downside of getting payday loans online. However, they do fill a need, and sometimes it is better to pay a higher interest rate to get money when it is desperately needed than to say no. That’s a question that nobody can answer except you.

Where to Get an Online Payday Loan

You can get payday loans just about anywhere online. There are so many companies falling over themselves to give you one that you should try to avoid choosing indiscriminately from an internet search, but to take advice on the matter.

Many sites such as this one have looked closely at a range of online payday loan companies and have come up with one or two recommendations. Those presented on this page have been carefully researched and are respected in the industry. You have to avoid the cowboys, and that is what we are helping you to do.

Here are our choices of online payday loan providers.

Cash Central

Cash Central provide online payday loans quickly and with no gimmicks. Make your application, and once it has been approved you can apply for a loan at anytime. Any time you need money you just login and ask for the money – simple!

Cash Central has a map-driven system for finding your payment over a specific number of days. Each state has its own limits on what can be borrowed over the short term, and in this way you know exactly what you have to pay back and when. No frills, no gimmicks, just the truth. That’s what this is our #1 online payday loan site for now. However, we will update this at least monthly, but usually sooner.

Payday LoanToday

There are three reasons why PaydayLoanToday is the second of our preferred online payday loan providers:

If this is your first loan with them you can borrow up to $200 for 30 days without any fees – yes, that’s tight. No fees for a $200 loan. Borrow $200 and repay $200 and no more, as long as it is done within 30 days.

You can either fax or scan and email your bank statement, so it can be totally faxless if you prefer. Many companies that claim to offer a faxless do so for only a small number of customers, but with this company everybody has the option.

If you cannot afford the repayment, most companies will apply rollover fees ad infinitum, but not Payday Loan Today: they stop the rollover after two months.

You will have your payday loan in your bank account next morning, and can extend it at the click of a button.

No credit checks: no matter how bad your credit is they won’t know and don’t really care. Everybody is the same as far as this company is concerned.

I couldn’t choose between these companies, and likely this will be my lender of the month in May if I don’t receive any bad reports.

Payday Loan Today look as though they care about their customers, and are not just out to screw them for as much as they can as many others appear to do. I’ve never used them, but wouldn’t hesitate if I needed their services.

The maximum they will lend you is $500, but if you need more than that you aren’t going to pay it all back next payday, are you. In that case you would need a larger more structured financial agreement.

CLICK HERE to check out what they have to offer, and to compare them with Cash Central . I’ve allowed them to open in new windows to make comparison easier.

If you prefer to check your own choice of online payday loan companies then there are many others available for you to evaluate. Just take one piece of advice: don't sign up for anything that has not been reviewed until you have checked out the small print.

Each of the sites presented on this page is different to the other, and each will meet specific needs. Make sure that the online pay day loan company you choose meets your needs.

Not all online payday loans are the same, but if you choose the one most suited to your needs from this page then you will have less of a problem in making the repayments.

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