Payday Loans

Direct Payday Loan Lenders Vs Online Cash Advance Companies

Though payday loans are very expensive financing options to borrow money to meet your financial requirements, but if you are sure that there are better alternatives available out there and that you must borrow this form of cash advance, you are advised to consider borrowing from direct payday loan lenders only, that too, from a local payday loan store that is duly licensed under the payday loan laws of your state. The following analysis between the two most common sources of payday loans will get you a better picture on why borrowing from a direct payday loan company is a much safer option as compared to borrowing from an Internet-based cash advance lender.

Reliability

The problem with online cash advance companies is that most of them do not follow the laws and charge you unfairly; besides that, they are also very difficult to catch by the law authorities when found to be guilty of a scam. On the other hand, direct payday loan lenders are more reliable because they have their offices located in your city. However, considering the very fact that even local payday loan stores can scam you, you are strongly recommended to do a thorough background check before you sign up with them. Make sure that they have fulfilled all the legal requirements and that they are running a legal business.

Payday Loan Laws

While you are comparing the services offered by direct payday loan lenders and by online cash advance companies, you must also get your4self educated on the specific payday lending laws that are applicable in your state. It is very important for you to keep in mind that the payday loan laws vary significantly from one state to another. In fact, since many states have banned this form of lending because of the extremely high interest rates that lenders charge on these loans, the first thing you should find out if payday loan is legal at all in your state. If this is not legal in your state and you still find local payday loan stores and online companies that are willing to issue you small short-term cash advance, you must avoid them because they are clearly engaged in illegal activities. Even if payday loans are legal in your state, you should make

yourself aware of the legal restrictions that these laws have imposed on the maximum interest rates that can be charged on cash advances, whether rollovers are permitted (if yes, how many times) and the terms and conditions regarding repayment as well as collections.

The more informed you are, the better you will be able to decide whether a payday loan makes the right solution to your temporary financial problems. In any case, if you deicide to borrow it, make sure you borrow from a direct payday loan lender. If you are borrowing from an online cash advance company, make sure that they have their offices located in your city and that they are running a legal business.


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