Online payday loans can be not only a quick and convenient, but also cheap way to get extra cash. However, you need to know how to distinguish a good offer from a bad one and where to look for the best ones. If you have never used the services of non-bank lenders before or want to start borrowing cheaper than before, we have some valuable tips for you to save your wallet.
Online payday loans can be an effective tool to repair your home budget, but they can also lead to ruin. It all depends on who and for what percentage we want to borrow money and what threatens us when we are late with repayment.
How not to be deceived by payday loans online?
The internet has contributed to the rapid development of financial services. To get the financial help you need, you don’t have to leave your home or waste time waiting for an appointment from an employee of a loan company or courier with a contract to sign. By borrowing online, we can get the money into the account in minutes. But it is not always safe.
If you do not want to expose yourself to the risk of fraud or usury, whenever you need extra cash, choose an offer from a reliable lender. How to recognize him?
If the company offering internet payday loans is widely known and has been on the market for many years, you can be sure that it operates in accordance with the law and that the contract repayment costs will be within the limits allowed by the Consumer Credit Act.
The unspoken name of the lender does not necessarily mean that the company should be avoided. People who have not been interested in the loan market so far may not be familiar with the brands of many medium and smaller entities, which, although they are not widely advertised in the media, operate legally, and often even offer loans that are cheaper. than industry leaders. Before you borrow money from a business you don’t know, check out the reviews about it on the internet. The brand should also appear in the financial comparison rankings. Remember that no negative signal about the integrity of the entity should not be ignored.
Avoid using the services of companies offering online payday loans when:
• they conceal the costs of services offered: no detailed repayment costs, no interest rate tables and fees,
• do not provide details on their websites: no regulations on granting loans, no company identification data
• they need to send an activation SMS to confirm acceptance of the application (the loan offer may be a fraud attempt to trick Internet users into a costly premium SMS),
• offer payday even online loans to people on black lists of debtors,
• they require collateral that significantly exceeds the loan amount,
• traces of their presence on the market end on their own website (they do not appear in the rankings of popular financial services, they do not have positive reviews on internet forums).
Remember that online payday fraud can take two forms: phishing or personal information. In the first case, it consists of attempting to seize usury interest or seizure of pledged objects that were used to secure debt repayment. The second case also allows fraudsters to earn on their victim, but in a less direct way, involving the phishing of personal data, for which subsequent loans will be taken.
What do you need for payday loans online?
Although we warn against quickly sharing your personal data online, you will need to provide basic information about yourself to get a bank loan and payday loans.
Lenders will usually require you to provide information on the loan form such as:
• first name and last name,
• ID card number, expiry date and issuing authority,
• photo of ID card,
• contact phone number,
• and- mail address (the loan agreement will be sent to this address),
• Bank account number.
Submitting a loan application is usually possible after registering on the lender’s website. Data for logging into the client panel are sent in an SMS or email.
In order to verify the applicant’s identity, the loan company will ask you to make a transfer from your own account to the specified account. The transfer amount is usually USD 0.01 or USD 1.00 and may be refundable or not. The account owner details must match those entered in the loan application. Transfers made from a joint account belonging to another person or from a company account will be rejected and the verification will be considered negative.
Entities offering internet payday loans that verify the customer’s credit history at BIK (currently most companies use this option) will additionally require consent to be verified in the Credit Information Bureau.
Watch out for the debt loop
When you use payday loans over the internet, choose your contract duration carefully. Paying the payday loan in time should not be difficult for you, otherwise you will be exposed to penalty interest or you will have to apply for another loan to pay off the previous one. In this way you will be forced to bear several times the costs of paying the same amount. You will easily fall into a debt loop.
If you are not sure whether you will collect the required funds on time, look for an offer in which the lender provides longer loan periods, eg enables the use of installment plans. If the online payday payday payment is spread over several installments, the individual payment amounts will be less charged to your home budget.