If you are short on cash and need an
emergency loan to pay off a bill, you are likely to need an online payday loan.
Online payday loans are generally
for someone who has low credit and is living paycheck to paycheck. Then an
emergency comes up, their kid is sick or their car needs emergency repairs, or
a bill comes up and it cannot wait until payday to get paid. So, why on earth
would someone need to worry about taking out an online payday loan?
What is a payday loan?
These online loans are too readily
available for quick cash. All a person needs is proof of employment, usually a
few paycheck stubs, your boss's phone number, and two forms of identification.
That's it. Normally your credit score doesn't even come into play.
The money is made available to you
usually in 24 hours or less and is deposited directly into your checking
account. Sounds easy right? Online payday loans usually come with enormous fees
and potentially dangerous risks. Here is what you can look for to keep yourself
safe and your identity in the clear.
The Dangers of Online Payday Loans
The biggest danger is you. If you
loose your job before payday, or your paycheck is not large enough to cover the
"up to 60% fees" you could be owing money to the online payday loan
creditor AND your banking institution. Associated fees, percentage rates, and
payback percentages are big money making business for these companies.
How do you think they can afford to
take such a risk? Of course, the payout has to be great for them to take it.
Other dangers may be hidden fees not covered by your next pay day or initially
only covered in the fine print you might not have read. Even more surprising is
if your check is a day late and the creditor takes the money out of your now
empty banking account. You wind up paying both institutions and up to double
the original payback amount.
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