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The popularity of online loan lenders has been growing day in day out thanks to the many advantages that these loans have to offer. However, just as the popularity has been growing so to have the number of complaints.
Although a majority of the people find the loans quite conducive to helping them in a time of need, they have issues with certain aspects of the payday loan industry.
According to payday lender Simple Payday, the hassle of changing the payment amounts happens to be the most popular complaint. A majority of the companies that offer payday loans have made it quite easy to apply for loans and get approved but have not simplified the procedure of changing the payment amounts.
The matter has not yet been resolved because most people do not understand how the matter should be a problem. They feel that people should be comfortable with the low amount asked per week. However, thanks to research, it has been found out that some people usually want to pay their loans much earlier than scheduled – so as to reduce the amount of interest that they will be charged.
Although there is a set procedure they would prefer that the process be much simpler. They would prefer to have the ability to change the payment options online rather than call to have their matters attended to.
Most companies that offer cash loans usually charge late payment fees. The complaint of the consumer is that not only do the companies charge a late payment fee but also that the payment fee is quite high. You will be surprised to learn that you can actually be charges fifteen pounds for every hundred pounds that comes in late. This complaint happens to be quite similar to that of credit card holders. Although the late payment fee encourages people to pay and is a huge source of income to the companies’ offering payday loans, it really leaves a huge hole in the consumers’ pocket.
Lack of twenty-four-hour support to its consumers by companies offering cash advances is another common complaint that needs to be addressed. You might be surprised that although payday lenders accept applications all day and night, there is no one to help the customers when they encounter a problem. The customers have brought it to attention that the probability of them receiving live customer service is quite low when they need help filling a form outside normal working hours.
The last of the complaints happens to be the very high interest rates charged on the payday loans. It is very common to find a consumer who is in dire need of a loan but avoids it because of the high interest rate charged on them. Their biggest fear usually is that they will probably not afford to repay it.
This form of finance can give borrowers quick money on a per-need basis. Thus, they are very useful in emergencies where the people involved can’t wait for money to arrive. Emergency loans are paid off by borrowers as salary day comes, hence the name of the loans.
Advantage #1: Approval is easy
Unlike in regular loans where you have to provide plenty of information sheets, especially your credit record, only a small number of requirements is needed to avail of a cash advance. Mainly, they are: proof of employment, your name, your age, your photo, and your account number. When you are doing transactions online, filling up of forms takes just minutes.
Advantage #2: The cash comes really quickly
Once you have applied for a loan, you can get the cash in less than one hour. When you apply through the Internet, you can even get the money in less than 10-minutes. You will also receive a quick notification that the money has reached your account.
Advantage #3: Payday loans are unsecured loans
That means that you don’t have to present some sort of collateral to avail of these loans. You don’t have to put your car, your house, or any other type of property on the line just to get a cash advance loan. You will be trusted upon to pay up at the next payday or at any other time that is agreed beforehand. (In some cases, the payment is deducted automatically from your next pay check.)
Advantage #4: You don’t need a good credit record
This is a significant advantage. Many people don’t have money to meet emergencies because they have plenty of debts. Instead of being able to save, they pay off plenty of debts. Their credit records may also be dented, so they can hardly avail of good loans from usual creditors. Lenders of payday loans, on the other hand, do not do credit checks when you want to avail of cash advances. Even people who have filed for bankruptcy can avail of payday loans as long as they are salaried. The downside, however, is that you get charged a high interest rate, such as 25%.
Advantage #5: It is easy to look for
If you don’t have access to a physical lender, you can look for a lender in the Internet. There are many trusted sites (but be sure to stay away from online lenders that charge ridiculously high interest rates, such as 250%). The money goes straight into your account; you don’t have to meet the lender at all.
With all their advantages, can be of great help to many people when they really need the money. However, they have to use only when absolutely needed, because of the high rate of interest.
You will agree with me that no matter how diligent a person tries to be when it comes to saving money, things always happen which sometimes completely drains us financially. When you find yourself in such a horrible situation and you do not have the option of using a credit card, the best alternative now can be online lenders.
The good news about emergency loan lenders is that your credit score does not matter at all, unlike other loans where you cannot get a loan when you have bad credit. With these, getting a loan is quite faster and easier, unlike getting a loan from the banks which could take you weeks or even months. This makes it a better option especially when you need money urgently.
An understanding of financial products is very necessary. This is because, in spite of the numerous advantages it offers, there are certain issues associated with it. One of the main troubles with this type of credit is the interest rate. These rates can be so much higher than what you borrowed that you may find it so difficult to pay back in full in the short time allowed.
One of the ways you can get advances apart from the brick and mortar store is getting it online. Online websites offer a very easy and convenient way of getting a credit. With this online method, you get to receive the money in as little as 24 hours.
The moment the borrower gets to choose a lender, the contract is then signed electronically and then in less than 24-48 hours, the money is deposited into the borrowers account. And when the loan is due, most lenders automatically withdraw the money and corresponding interest rates from the borrower’s bank account.
All over the world so many people are forced to opt for this type of quick finance, simply because they have no other choice and no one will certainly want to loan to them. Therefore, if you think you really need money, this maybe the best option you have, especially when nobody else wants to help you out.