Loans 200.com is here to help you in your financial situation. We offer a wide array of various loans ranging from payday loans, through personal loans and car loans to cash advances. Therefore, no matter if you need the loan to put down new floors, buy a new car, or finally take care of your health we have just the right financial plan for that. We provide our customers with loans ranging from $200 to $1000. All you need to do is stop worrying. You can fill out our online application form and wait for your personal loan to be directly transferred to your bank account. It really is as simple as that and the entire process does not require any document whatsoever. Moreover, as many of our customers are in a hurry we designed the procedure to be as fast as possible. As a result once you have applied for the loan it takes only a few hours to send you the money. Consequently, the longest you might have to wait for the loan is up to the following business day.
We value our customers’ privacy and we know you do not wish to overpay. Therefore, although we are a member of a large group of lenders we never disclose your personal information to anybody. We do, however, make your application available to our associates so that we could get you the cheapest loan possible. As a result you can quickly get a cheap loan without leaving your comfortable armchair. There are, nevertheless, some criteria that must be fulfilled by our customers: you need to be over eighteen, have a fixed income and a banks account of any type. The bank account is necessary as we will have to transfer you the money as soon as your loan application gets approved. If you fulfill the above criteria do not worry – you are on the right track to get your desired loan.
How it works
Payday loan is invariably called cash advance loan, payday advance loan or emergency cash loan. It is a small, short term loan that normally matures in 14 days. Coincidentally, its due date is timed with your payday, which is on the 15th 30th of the month. There are payday loans that require a post dated check to cover it. However, payday loan is generally categorized as a clean loan that requires no collateral. But, since it is without security, the interest charges are very high. They are poles apart when compared to the regular interest rates afforded to traditional loans. The amount of the loan under this credit starts at $100 and its maximum is $1,000. This minimum and maximum loan amounts are also dependent on the State that regulates its operation. In the United States, there are only 37 States that allowed its operation. The rest have declared it illegal and made its operation less feasible and considered it as a loan shark.
Payday loans online are specifically targeted to people with urgent cash requirements. Those who are encountering difficulties in availing credit due to their poor credit scores are their captured market. If you are in dire financial crisis and your credit rating is not good, then you can run to these payday loan lenders and you can find relief. They are considered life savers to these individuals. But, as proven by a study, many of these borrowers have resorted to several roll-overs as they became victims to the so called debt cycle trap.
The Pros of Online Payday Loans
There are several features of payday loan that makes it attractive to borrowers. Here are some of them that are considered favorable to its customers.
- Easy to avail-since payday loans are small in amounts, the process to borrow cash is very simple. If you apply online, you are required to complete a short and simple online loan application form. You can accomplish it in just a couple of minutes if your data are readily available on hand. The basic requirements are also easy to comply like citizenship, age, employment status, bank account and identification documents. What is vital is that you have to supply the accurate information on that form. You may even stay at your home while filing your online loan application and wait until the proceeds is electronically deposited to your bank account. It is really convenient for both parties if your loan is processed online.
- No documents required-if you apply online, most lenders do not require documents to back up your loan application. The verification of the information that you have supplied on your online application is verified on the internet. This is done faster than what offline loan operators are doing which is manual. In just a few seconds, if you apply on the Web, you can have a feedback on the status of your loan application.
- Not strict on credit ratings-payday loans are not more concern on the credit standing of the borrower. In fact, even those who have undergone bankruptcy proceedings can apply for this loan. The main reason behind this is that it is a small loan and the payment term is shorter than any regular loan. However, the interest rate is very expensive. It is common knowledge that when a loan is clean and requires lesser documentary support is costly.
- Faster loan release-there are online payday loans lender who can release your cash advance in less than an hour. At most, you are assured to get the cash you need in one day. No other credit accommodation can beat the loan processing speed of payday loans online. If you prefer to apply through the brick and mortar lenders operating in your community, your loan proceeds will take a couple of days. The reason is that they do the verification manually as compared to online processing. The internet has made the release of your payday loan online faster than ever.
- Provider of instant help-when you need cash immediately to meet an emergency like the hospitalization of your child or spouse, payday loan can save your day out of this problem. You can rely on its help within an hour or lesser if you source the loan online. There are online lenders who can process your payday loan in a couple of minutes. They are considered as life-savers by some borrowers because of the speed and timely help they provide.
The Cons of Online Cash Advances
Similarly, there are also disadvantages in using payday loans to solve your cash emergencies. Here are some of them for your notation.
- They are loan sharks-imagine paying a maximum interest rate of 870% in APR. This high interest rate makes them usurious and around 13 States have banned them in their jurisdiction. This is the reason why they are called loan sharks. They thrive on the financial difficulties of others and take that opportunity to make a pile of money. In the United Kingdom, there’s no limit in the rate of interest that you can be charged.
- The payment is very short-normally a payday loan matures in 14 days. This short period of time is not sufficient for an average worker to raise the cash he needs in between his paydays. So what happens is that after getting deducted of the initial payday loan, nothing is left on his paycheck, hence a renewal of the loan is inevitable. This situation renders the borrower helpless that makes him vulnerable to the debt cycle trap. Studies have shown that on the average, a borrower uses payday loan ten times in a span of 12 months. This simply means that he negotiates a new payday loan to pay off an old payday loan account.
Sources of court suit-there are States that require the issuance of post dated check to guarantee the release of payday loans. This situation requires the borrower to redeem the check when the payday loan matures or that the check would be drawn by the lender on due date. If the check bounced due to insufficiency of funds or whatever reason, the lender sometimes resort to filing of court cases to enforce collection. In some States or countries, issuance of a bouncing check is criminal in nature in addition to its civil liability to pay the check in full. This makes payday loan secured with a postdated check a source of intimidation through a court case against the borrower when he fails to pay it on time.
- Vulnerability to identity theft-when you apply payday loans online, you are required to fill-out a short online loan application form. You supply the lender with your vital personal and financial information which could land in the hands of unscrupulous persons. If you are dealing with agents or indirect lenders on the Web, your financial data is shared with several lenders by the agent when he sources the right financier for you. This exposes you to identity thieves who could use your information to defraud you. Beware of this possibility and deal with BBB accredited online lenders only. For example, the transmittal via the Internet of a consumer’s checking account poses high risks to them according to the survey conducted on a hundred Internet payday loan sites by the Consumers Federation of America (CFA).
While it is understandable why others prefer to borrow money from payday loans during their emergencies, it is also worthwhile to think it over before deciding to resort to using them to help you out of your financial problems. Study it carefully, count the cost and most importantly prepare a budget as your guide whether you’ll avail it or not. What is most important is that you must know how it works. If you are knowledgeable about it, surely you will also know the best things to do in case you can’t avoid using it.