Online Payday Loans - What You Absolutely Must Know About Getting Online Payday Loans

Online payday loans are a convenient way of getting fast cash when you’re in tight situation. The problem is anyone can set up a website and collect private information about you. Identity theft is running rampant across the Internet. So, it’s important that you take steps to protect your personal information. Consider the following advice when looking for online payday loan:

Ï      Always verify the security of the website you are entering your personal information on.  Working with online payday loan companies has the potential to provoke a certain amount of risk. Do you know if this company is real? Generally, you will be giving them access to your social security number and your bank account information. While this information is required to complete the online payday loan process, it is sensitive data that can create tremendous problems for you if it falls into the wrong hands. Look for the "lock" icon in the lower status bar of your web browser to check if a webpage is securely transmitting your information. You should also be able to verify the website security certificate right on the website (homepage).

Ï      Use a U.S. based online payday loan company that have real people you can reach by phone. Check the contact page on their website to get an address and phone number of the company. Call them and speak with a representative. Ask them any questions that you may have and be sure that you are satisfied with the answers they provide you. The lender you choose could be an off shore company that is hard to locate if you have a problem. In most cases, online payday loan companies that are based in countries outside of the U.S. are not bound by the same U.S. laws that are in place to protect your rights.

Ï      Don’t let the online payday loan company put your account on automatic renewal. Many online payday loan lenders have automatic renewal terms. They will deduct only the loan fee from your bank account each pay date and rollover the principal loan balance. The borrower must take extra steps to have the principal amount deducted to pay off the loan in full. While this is convenient for people who consistently run behind, this can be a major debt trap that can end up costing you hundreds of dollars. Be sure you carefully read through your disclosure agreement before you sign it.

Ï      Don’t borrow more than you can afford to repay on your next pay date.  While it is tempting to take the maximum loan amount you are offered, you should carefully consider what amount you can comfortably repay when your pay date rolls around.  Higher loan amounts equal higher fee amounts. If you cannot repay the loan on your due date you run the risk of being forced to roll over the loan, which means additional fees. Or you may find yourself considering taking out a second payday loan to pay off the first one (almost never a good idea).  And then there is always the risk of your loan going into default. This usually creates a huge mess because of the default fees that will be applied, the negative credit reporting that will result, and potential legal problems.

Take all the above advice with you when you search for an online payday loan company. Use Internet common sense. Remember: Check the website for security. Read all the terms and conditions before signing your loan documents. Use a U.S. based company that has real people you can talk to and don’t borrow more than you can afford to pay back. There are legitimate companies that can offer you the security and privacy of an online payday loan without the risk. When in doubt, stay away!