Payday loans aren’t regular ground at your topical pawnshop; ample monetary companies are moreover in the pursuit. Banks, credit unions, and financing companies propound services in this subprime lending emporium. In that place are also companies that conduct scams.
Often these are operated overseas.
Who’s Offering Payday Loans
Online you will find thousands of payday loan companies. Many of them simply process or refer applications to larger financing companies. With over $45 billion in payday loans being processed annually, large financial companies, such as Wells Fargo, Citifinancial, and MBNA, have become involved.
Some companies identifying themselves as payday loan companies are actually fishing for your information. These companies are usually located overseas and are difficult to prosecute.
Good sense can protect you from these companies. Don’t hand out your financial information to third party sites who promise to refer you. Also look for information on finance fees and payment options. If an offer seems too good to be true, check it out.
You will also find regional and small subprime lenders who focus solely on payday loans.
With FDIC institutions, the application process can be more stringent. Payday loans are known to be high-risk. Larger financing companies try to screen out some applications by requiring higher income levels and researching checking account history.
However, there are niche payday lenders who only require identification, a source of income, and an open checking account. Online payday loan companies also have faxless application, requiring less paperwork.
Besides application differences, payday loan companies also handle payments differently. Traditional companies will require you to write a postdated check, which they will cash on your payday. Online lenders debit your payment automatically.
Finding The Best Lender
Be sure you compare lenders. By researching online, you can quickly find the best rates and terms. Also, request financial information before you commit to a lender.