A lot of people have used the payday loan system to get them through a financial crisis. Payday loans can help you pay for unexpected emergency bills or other expenses that come up when you are still waiting for your payday to arrive. Many have availed of payday loans because the process is fast and easy. No credit check is needed and the requirements are basically you are currently employed, have an existing bank account and at least 18 years of age.
Online payday loans are also available on the internet. This makes getting a payday loan much easier and convenient for customers. But be careful when looking around for lenders online. There are scammers that take advantage of customers offering deals that are too good to be true.
Here are some points to look out for when applying for payday loans:
Never pay for a fee to apply
If you're being charged for the application of the loan, you better get out immediately. You might end up paying more than you need to. All fees should be included in the amount to be paid at the agreed due date.
Excessive loan "roll-over" fees
This roll-over fee is an additional fee added to what you owe the lender when you fail to pay for the loan on the due date specified. Abusive lenders tend to charge a huge percentage as an overdue charge.
Always read and understand the terms and conditions of the lender. Know what you are paying for and make sure there are no additional fees lurking in a barely readable font size.
No user help or customer service
The lender is highly suspicious if their website does not offer customer service. There is no way of contacting the company if anything goes wrong at any point of the processing of the loan.
There might be more scams out there so be aware and don't easily give out personal financial information if you are unsure of the company or website's credibility.