Make Sure You’re Dealing With Reputable Payday Loans And Not Scams Online
Sometimes you’re in a rush to get financial aid in the form of a short-term loan because you’re facing a serious penalty if you don’t pay certain creditors you owe. Unfortunately, when you’re in a panic situation you can open yourself up to fall in a scammers trap in which you may not only lose money but possibly become an identity theft. Many scammers like to set up bogus loan services because they know unsuspecting people are likely to give them information that they hope will get them access to a personal loan. You need to make sure you know what you’re getting before you apply for a loan and who you’re applying with.
Familiarize Yourself With How Payday Loans Work
Since scammers will usually try and offer features in their payday loans that most other legitimate lenders will not offer, you should know the basics of how real payday loans work. Here are a few things that payday loans generally require:
- You need to live in a state where payday loans are legal because they are not legal in every state and legitimate lenders will generally not attempt to circumvent state laws
- Most payday loans will not be in high amounts of over $1,000, and in most cases, you’ll borrow somewhere between $400-$500
- Most payday loans will want verification of employment because they want to be sure borrowers can make payments or are required by law to make sure borrowers have income
Payday loans are one of the only short-term loans out there that do not require any assets to be used as collateral. For example, a similar loan to a payday loan is an auto title loan which is also a short-term smaller dollar loan, but this loan does require collateral with your car’s title in order for you to borrow money.
But payday loans don’t require any collateral at all, although the lender may require that you allow them to make an automatic withdrawal from your bank account in order to be approved for financing. Many payday lenders have physical stores that can be visited to verify that they are legitimate, but some also operate online and in some cases only, and it’s differentiating these online lenders from scammers that can be tough.
Things To Look For In Reputable Payday Loans Websites
One way you know you’re working with a legitimate payday lender and their website is that they’ll usually have reviews that explain that they’ve offered loans and that confirm that borrowers have received their funds. If the payday lender doesn’t have any existing reviews or you can’t seem to find out much about them online, there’s a good chance they’re a scammer. More well-known payday lenders will be listed in different online directories and in some cases will also have store chains around the country.
Another thing to know about reputable payday loans is that while they are generally much less regulated than other loans, most states still have laws that require them to register with the state to do business there. Online payday lenders should be no exception to those regulations. If you cannot verify where a supposed online payday lender is located or you cannot verify that they are registered with the state’s financial regulations department, you should probably consider them a scammer.
Basically, you can never be too careful about applying for payday loans online because many scammers will try to look legitimate and in some cases may even try to copycat actual lenders. Pay close attention to how their websites are built and if they’re secure, what their contact information is like and whether or not they’re certified to do business. And never give out your social security number through emails or over the phone or enter any credit card or bank account information in that manner.
Legitimate Uses And Benefits To Payday Loans
While scams are always a risk when you look for payday loans online, legitimate payday loans can help you with actual needs. Whenever you need a few hundred dollars to pay for short-term expenses such as rent, utilities, groceries or car repairs, payday loans are a way you can borrow that money even on short notice. What’s convenient is that they make loans in amounts that banks will not because they’re not run by the same corporations that big banks are, and they’re not subject to the same lending rules that banks are. Here are a few other reasons you could benefit from payday loans:
- You don’t need good credit history to be approved for payday loans
- Approval decisions only take seconds and you could receive your funds the same day
- You do not have to state what you want to use a payday loan for
Final Requirements For Approval
It takes a very short time to fill in our application and get matched with a payday lender for the amount you can borrow. You do need to answer all questions honestly and accurately to make sure you’re eligible for payday loans and to make sure you can access your funds. You will need a government-issued ID to present to the lender, verification of employment or at the very least a steady income, and a valid checking account that’s in good standing. You can visit our FAQ page if you have any more questions about payday loans.