The internet may be a fast and convenient way to access information and entertainment, but not every website has your best interests in mind. Just like on-location lenders, online payday lenders may try to encourage you to make bad borrowing decisions disguised as quick solutions. To better inform your next online loan, let’s take a look at exactly how online payday loans work.
Online Application
Just like you would at a lender’s location, you must apply for your online payday loan through a loan website. The contents of this application may vary depending on the website you’re using and the state you live in. You’ll typically get your application results back within minutes, because these approval systems want to attract even the most unprepared borrowers. After submitting your online payday loan application, a representative may contact you to finalize your loan transaction.
False Incentives
Online loans are a quick way to get cash into your account, because you can expect to receive the balance of your loan in just 24 hours. This is a convenient trick that most lenders use to make online loans more attractive. However, some online payday loans are also loaded with false incentives. Some payday lenders also try to incentivize borrowers by offering exclusive loan deals online. These lenders disguise additional fees as special interest rates or higher borrowing principles to make their loans more appealing for borrowers in need of quick cash.
Loan Repayment
Before you know it, it’s time to repay your online payday loan. Unfortunately, some online lenders will automatically withdrawal your installments from your account, regardless of whether you have the amount available. This puts you at risk of overdraft fees and potentially at risk of defaulting on your other financial obligations. You should always be clear on the terms of your loan agreement, because if you are working with an online lender that isn’t automatically collecting payment, you could still be subject to additional fees if you aren’t able to pay your balance on the due date.
Lender Harassment
If you don’t do adequate online lender research, you may fall victim to an online scam. And, even if you decide not to borrow, you’re subject to countless phone calls from hungry lenders if you apply with the wrong website. By filling out an online payday loan application, your information could project to thousands of lenders affiliated with the website you submitted to. These lenders can call at any time of day offering you different interest rates, higher loan balances, and other false incentives to try and increase your debt.
Online Lender Protection
If you need to relieve your online payday loan debt or want to put a stop to harassing lender phone calls, contact the seasoned debt counselors at Progressive Debt Relief. We can guide to you to the best borrowing situation to help you avoid falling victim to online payday loan scams. For a free consultation, call us today at 1-877-590-1847.
