Business owners are now generating more money online than they are in their physical locations. This is because of how easy it is to shop online for things we need. However, the internet has also yielded many of us the opportunity to borrow money online. Save for the states wherein payday loans are prohibited by law–a relatively few–individuals can now borrow money online without ever needing to stand in line. Here are some steps to follow, as well as a few caveats, for borrowing money online.
Type ‘payday loan direct lender’ into a search engine. You’ll want someone reputable. Peruse the many thousands of hits your query will return for a direct lender accredited by the Better Business Bureau.
All direct lenders will require you to enter your personal information. This includes your name, full address, social security number, the amount of the loan that you wish to receive, the name of your employer, their phone number and your gross monthly income. In some cases, lenders may also ask for your net monthly income to determine your eligibility. Be prepared to disclose for how long you have lived at your place of residence, your monthly rent and the total amount of your monthly utility bills.
You will also be asked to provide your bank account number and your bank routing number. With payday loans, a direct lender will wire you the loan and automatically withdraw it on your next payday. In many cases, proof of identity and income are required, so you may need to fax them over. However, some companies do not require you to fax anything, and can wire you your loan within one hour during business days.
Ensure that you speak with a representative over the phone. Since the interest rates on payday loans are extremely high, it’s important to voice your concerns and try to work out the best deal possible. Don’t take the first lender that offers you a loan just because you were approved. Most payday lenders will approve you with and no down payment, so high interest is unavoidable. That doesn’t mean that you need to pay through the nose, however. Do your research.
This is not an inexpensive way to build credit. Most reputable lenders will report your compliance to a credit bureau. Make sure you understand the repayment terms and pay back the loan on time. Anything less may deepen your financial crisis.