The dangers and risks of online payday loans

For many hard working people or when the new year is coming, it is the time that people are putting added expenses and gifts onto credit cards. For various expenses, people have to face the credit problem. At that time, some people may pay attention to loans. Just imagine getting loans approved in no time. Such are payday loans. The idea of obtaining instant payday loans through online lenders is fast gaining popularity primarily because obtaining cash advance loans from any online lender is an easy and convenient process where the borrower is not even required to move an inch from his house.

However, borrowers are ignoring the fact that there are several dangers and risks associated with online payday loans. Yes, here are a few things to look out for. If you can relate to at least one or two of them, then it’s better to forego the idea of payday loans if you don’t want to put yourself in a high-risk situation.

What is a payday loan?

A payday cash advance is really something most all of us is going to need if not today, in the near future. Everyone knows that cash doesn’t grow on trees and it’s need is seemingly never ending with unexpected bills and expenses always awaiting you on the horizon.

Risks And Dangers:

The foremost danger is the interest rate charged by online lenders. In most cases, the annual percentage rates on these loans range between 550-650 percent. For example, a payday loan of $500 can cost an excess of $150, if the loan needs to be repaid on the next payday. This amount will be electronically deducted from the borrower’s checking account. In case the borrower does not have enough funds in the account, he is liable to pay charges that are levied both the bank and the lender.

At the same time, the second danger associated with online payday loans is that online lenders automatically renew the loan even if the borrower’s loan is due on the next payday. Since they have access to the borrower’s bank details, they just withdraw the required finance charges from the account while extending the loan for another pay cycle without even seeking the permission of the borrower. Borrower comes to know about this once he gets his periodical bank statement.

Another risk is the requirement of divulging important and confidential personal information such as bank account number and social security number to the lender while applying for an online payday loan. Revealing any such information on the website can be dangerous. In fact, this strategy has formed the basis of several online payday loan scams aimed towards duping borrowers.

Thus, while approaching online lenders for payday loans next time, you should keep careful and think it twice before deciding to obtain it.…

Easiest Way to Compare Payday Loans

Having the ability to compare payday loans is one of the best things you can do. If you sign up with the first one you see, you are going to end up paying way too much in high fees and interest. There is a hard way and an easy way to compare payday loans, below you are going to find out about the easiest possible way to compare them.

You could call every single office in your city to find out about their rates, but that could easily take an entire day to accomplish. Most of the same information is available online and it will take a fraction of the time to find the information, and then sign up for the loan.

To make things even easier, there are websites that can do the comparison for you. Many website have been set up to compare various payday loan lenders at the click of a button, so that you can immediately have their fees, interest rates, and maximum number of dollars they will lend you displayed right there.

Comparison shopping online is something that many people do when they are considering signing up for a payday loan, or even purchasing something online. It is a great resource you can use to ensure that you are always getting the best for your money. If you could get a payday loan for a lot cheaper than with another company, wouldn’t you?

Payday loans are something that many people need every now and then. It is great for helping you get through a rough patch. When you compare payday loans, you will ensure that you are getting your payday loan through the best possible company and for the best possible price. Next time you need a payday loan, why not compare them online?…