Online payday loans companies offer quick approval with their online application process. Once you have entered your personal information and source of income, you can be approved for a payday loan in as little as five minutes, and a cash advance can be deposited in your checking account the next day.

Online Application

Online payday loan companies do not require a credit check or faxed copy of your latest pay stub. You will be required to provide contact information which includes your phone number and address. You will also need to provide information about your income. Most payday loan companies require a work history of 90 days or other income of at least $800 a month. Once you submit your application online, you will receive approval in less than an hour. Many payday loan companies approve applications within minutes.

Once you have received approval of your application, you will also receive notice on how much you can borrow. Your state’s laws and your income level will determine the maximum amount of your payday loan. Most loans are approved for amounts between $500 and $1000.

Money Deposited Electronically

Your cash advance can be electronically deposited into your checking account the next day. You can skip waiting for a written check, taking it to your bank to deposit, and then waiting a couple of days to clear. With an online payday loan the whole process is quickly and discreetly handled online.

Easy Payments

Payments are also handled online. Most payday loan companies by default will charge your checking account finance fees after your next payday. However, you can choose to pay a portion of the balance or the total loan amount. Your payments are processed online, so you don’t have to worry about mailing in paper checks.

Speaking With A Representative

Even though your entire application and repayment plan can be processed online, you can speak with company representative if you have any questions. If you need to change your repayment plan, they can approve those changes. They can also answer questions about fees and rates, but reputable companies will list that information on their website.

To view our list of recommended payday loan companies online, visit this page:
Recommended Payday Loan
Companies Online.

Carrie Reeder is the owner of
ABC Loan Guide, an
informational website with articles and information about various types of
loans.

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Cash advance companies loan money to working people to tide them over until their next payday, usually in the amount of a few hundred dollars. To pay off the loan, the borrower writes a check that is post-dated for the next payday. When he or she has money in the bank, the cash advance company cashes the check. Often there is a service charge of about $15 for every $100 borrowed.

For people with bad credit and no credit cards, this is the easiest way to borrow money during difficult financial situations. This form of lending has become very popular, and cash advance is a $45 billion industry in the United States.

At first glance, cash advance companies seem like an expensive way to borrow money. When you calculate the annualized percentage rate (APR), some payday loans come out to 250 percent and even close to 400 percent APR. Compare that with 20 percent for a credit card and it quickly looks unfair. But there’s more to the story than that.

From a lender’s perspective, there’s no reason why they would charge what a bank or credit card charges in interest. For example, if a cash advance company lent one hundred dollars to someone for one week and charged 20 percent interest, it would only yield them 38 cents. That’s not much of a profit.

Although we don’t realize it, there are other charges that we encounter quite often that also turn out to be very high APR rates. For example, if you bounce a $100 check, you will incur overdraft fees and perhaps a merchant fee that could add up to a $48 charge. That works out to 1,250 percent APR. “If you’re late paying your $100 credit card balance, you could be charged $26, an APR of 678 percent,” according to John Matthews of Big Cash Advance. Taken in context, cash advance companies offer a worthwhile short-term solution.

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