When And How To Apply For A Cash Advance Loan Online?
Applying for a cash advance loan online is a very simple process. But, in order to understand whether you should apply for it or not, you will have to look into an array of complex issues that are usually associated with these types of small, short-term loans. To start with, you must first be well aware of the laws that regulate these types of loan in your state. It is very important for you to keep in mind that the laws vary significantly from one state to another. Some states have even banned this type of lending while some others have imposed low rate cap. There are still many states, where even the laws allow payday lenders to charge extremely high amount of interest and other charges. Besides that, an array of other provisions are also allowed, which make these loan programs very risky. Interestingly, despite the very fact that these loans are very easy to borrow, most borrowers
fail to repay the loan in time. The reason behind this is the predatory nature of payday cash advances. Following is a brief rundown on some of the various aspects associated with these loans, especially the ones that are offered from Internet-based lenders.
Even Online Payday Loan Companies Must Abide By The Laws Of Your State
Before you go ahead and apply for a cash advance loan online, you are strongly recommended to do a thorough background check of the lending company. Just because they are running their business through Internet and they do not even have an office in your state, it does not mean that they should not follow the laws. It is very important for you to keep in mind that the lenders have to follow the laws of the state where the borrower resides as well as the laws of the state where they have set up their office.
First of all, you should see if the lender is duly licensed and registered with the concerned state department. If your state has banned payday loans, it will be illegal for them to issue you a cash advance loan online even if payday loans are legal in the state where their offices are located at. Likewise, if payday loans are legal in your state, you must look at the terms and conditions of the loan thoroughly in order to find out if everything is in compliance with your state laws. For example, most states have certain maximum limit on the amount of interest and other fees that payday lenders can charge. Make sure they are charging you more than the legal limit allowed in your state.
Do A Thorough Review Of Your Finances And Decide If You Can Afford Timely Repayment
The problem with a cash advance loan online is that it provides you a very short period of time to make the repayment. Considering the extremely high cost of these loans, it may not be an easy task for you to make the repayment within the set due date, which is just a couple of weeks ahead (your next pay day). Since you have other financial obligations as well, you may not have sufficient fund left in your bank account to repay the cash advance debt. Not many people realize that payday lenders love it when their borrowers fail to make timely repayment because this is how they get a chance to make most of their money. For example, when you fail to meet the deadline for payments, they encourage you to pay a small amount of money and borrow a much bigger loan, which eventually turns into a vicious cycle of debt.
When the outstanding balance on a cash advance loan online keeps on rolling over again and again, your payday debt situation soon gets out of control. You can realize the horrible predatory nature of these loans with the very fact that many borrowers do not succeed in settling their debts even after paying 8 to 10 times the actual principal amount over a long period of time. This is how hundreds of payday debtors are even getting bankrupt.
So, Are You Eligible Or Not?
Well, the eligibility criteria for cash advance loan online have been kept very simple, which seems like a trap for consumers. With attractive features like 2-minute application form, no verification, no paperwork, no teletracking, no credit checking and quick approval, most consumers feel tempted to borrow these loans whenever they need some extra cash. As for eligibility requirements, lenders only want you to be at least 18 years old, a US citizen and a decent employment record with a bank account in your name.
Overall, if you are apply for a cash advance loan online, the chances of your application getting rejected is very low, but the chances of you getting trapped into a nasty cycle of debt is very high. If you are not careful, these loans can actually damage your finances beyond repair.
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