All the more people are utilizing payday loans to cover their urgent expenses. In circumstances when you need money and time is a concern, payday loans are the most viable solution. However these quick and easy loans come with their share of pitfalls.
Payday loans are offered through two mediums:
- Retail Payday Loans
- Online Payday Loans
Retail Payday Loans
Payday loans are generally associated with payday loan lenders who have a retail location. To secure a payday loan, a customer has to visit these lending locations along with their identity and salary proof. The concerned loan amount is approved on the basis of the borrower’s next paycheck. The borrower then writes a post dated check to the lender in the full loan amount plus the fees. The loan charges range from 15 to 30% for a 14 day period.
The loan repayment is mad either by cash payment from the borrower or by electronic withdrawal from the bank account of the borrower. The lender can also process the post dated check to recover his money.
Online Payday Loans
Online payday loans are UK no credit check payday loans which are processed online. However, online payday loans have several advantages. In an online payday loan, a borrower needs to fill an application form provided at the lender’s website. This application generally requests information concerning the borrower’s details and account information.
As is the case with retail payday loans, it is essential to have a regular salary and a checking account to qualify for an online payday loan. After the loan approval, the funds are electronically transferred into the borrower’s bank account for immediate use. This online process is much faster than the one at a retail lending location.
Listing the Benefits
Online payday loans have the following advantages over retail payday loans:
- The whole loan process can be completed in the comfort of your home.
- Online payday loans websites offer a 24 hour service.
- The amount is transferred within a few hours time.
- The entire process is quick and easy.
- You can access the loan services throughout the country.
- There is no paperwork involved.
- The loan amount is transferred electronically, making it completely safe and secure.
Although online cash advance loans have a definite advantage of retail payday loans, they share the same drawbacks. Online pay day loans generally have very high interest rates and fees. People tend to get caught in a loan cycle in case they fail to repay the loan.It is always advisable to consider payday advance loans as the last option for covering expenses.