Payday Loan Company

Payday loan centers are located in every community in America, including the Internet. Requirements for qualifying for a payday loan through the internet are vastly different from the brick and mortar building down the street.

For a traditional payday loan advance, you must provide a valid checking account, valid picture identification, and your last two paycheck stubs just to qualify. The checking account has to be verified. You have to write a post-dated check for the amount you are borrowing plus the handling fee and leave that check as guarantee for payment of the loan. You usually get some paperwork and a check for the loan amount right away. The paperwork does give you some protection in the event there is a problem. Some places even require a loan application with references for new customers.

The anonymous internet does away with all of this paperwork. They are advertising a “faxless” loan process. All you need to do to apply is fill out an application online, providing your employer’s name and address, the dates you get paid, and provide your checking account number. No credit check or verification is done. If you are approved, you will receive your loan 24 hours later deposited directly into your bank account. On your next payday, the amount of your loan and the handling fee will be deducted automatically from your checking account.

These loans typically charge large handling fees, anywhere from $15.00 to $50.00 per hundred borrowed, which work out to be an annual percentage rate (APR) of 100% or more of the loan. These loans are designed for emergency use. If you use these services more than once or twice a year, you can get trapped in a vicious cycle of borrowing from one payday loan center to pay for a previous loan at another payday loan center.

The problem with these types of loans is that the persons who need to use these services are typically living paycheck to paycheck already and are unable to obtain credit or build a savings account for emergencies. Most financial analysts, credit counseling services, and bankruptcy courts advise against using this type of loan.

If you find yourself in a position to need a payday loan on your paycheck, whether in person or online, please be sure to read the fine print on all paperwork, check with the Better Business Bureau or the Better Business Bureau Online to verify the business is legitimate, and pay the loan back as soon as possible.