FAQ’s about Online Payday Loans

What are Online Payday Loans?

Online payday loans are where you can apply online for a loan that will be repaid when you get paid next. Once you complete the online application and you get approval, you write out a check for the repayment, plus the amount of their fee and post date the check with the date of your next payday. The money you are borrowing is electronically transferred to your checking account, and on the date of your next payday, the check that you post dated is cashed to repay the loan.

Are all Online Payday Loan Companies Safe?
Most companies are safe, but there are many online scams out there. Before you begin using an online payday company, you will want to check with the Better Business Bureau to be sure there are no complaints against the company.

Do They Run A Credit Check?
No credit checks are run. However, they do check your checking account and look for nonsufficient funds activities. If these do turn up, you will be charged a higher interest rate. They also take into consideration the amount of any outstanding online payday loans.

What is The Difference Between Direct Lender and Lender Matching?
There are two different types of online payday loan sites. The first type is a direct lender. A direct lender is the lending company itself. These companies are the ones offering the loans. The other is a lender matching site. Lender matching is where the application is taken, than offered to a variety of lending companies. With lender matching sites, you will have many offers to choose from, and can pick the best one.

What are the Requirements for an online Payday Loan?
Requirements for an online payday loan are; you must be employed at your current employer for at least 3 months, you must have a checking account for at least 3 months and you need to be able to prove your income.

Do I Need to Have Collateral?
No you do not need to have collateral to receive an online payday loan.

How Soon Do I Have to Repay the Loan?
Your loan repayment is set up on your next payday. If you are paid every Friday, then your payment will be due the Friday after your loan is issued. If you are paid bi-monthly, then your loan will not be due until your next payday.

Will an Online Payday Loan Affect My Credit?
Yes, if you do not repay your fast online payday loan, or bounce the check and take additional time to repay the loan, then your credit will be negatively affected. Treat the repayment of your online payday loan as you would any other loan payment.

What Happens if I Can’t Pay The Loan?
If you can’t cover the check you wrote to repay your loan, then you can apply for an extension. There are very high fees for extensions, and this should only be done in emergencies.