Payday cash loan is a popular medium of borrowing cash for meeting urgent expenses. Although these kinds of loans are bit expensive, they are largely helpful in short-term financial needs. Looking at the popularity of this loan system, many people in the United States and Canada turn to online lenders for borrowing easy cash. However, this process is not as simple as it seems. One must be aware of each aspect of cash loan system in order to avoid any financial harassment at later stage.
Cash Loan: Frequently Asked Questions
In order to provide you with the minute details of online cash loan system, we have compiled the following list of frequently asked questions and answers:
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Is online cash loan system a safe option?Borrowing money against your pay from some online lender is perfectly a safe option, provided, you have verified the authenticity and work policy of the concerned company. So, go through company’s website and carefully read their terms and conditions before making a deal with them.
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How can I come across an ethical lender firm?The federal government has imposed certain restrictions upon the lender firms regarding interest rates and other matters. If a company is registered with some government organization, it will surely adhere to these regulations.
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How much can I borrow from a lender?With payday lender firms, you can borrow any amount between $100 and $1500. For any amount higher than this, you should seek an alternative option. This is because of the heavier fee involved in the case of higher amount of loans.
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How fast can I get the loan?Within 24 hours of filling the online form of the concerned company, you can get cash deposited directly to your bank account.
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How long can I take to repay?These are usually short-term loans that are granted to you for getting by in between your pay cheques. So, these loans should preferably be paid off within a week or two of borrowing them. As you keep on deferring the payments, the interest upon them will start on accumulating.
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What do these companies normally charge for granting such loans?Lenders make their profit out of the fee that they charge per $100 of cash loan. This fee amount may vary from lender to lender. Normally a fee of $10-20 is charged for a loan of $100. This fee may be either deducted from the loan itself or added to the amount that you would pay them back at the end of the term.
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What if I cannot make the timely repayment?In case, you default in repaying the loan with your next salary, the company will allow you to renew the loan for another month. However, this results in higher interest rate and may cause an extra burden on you.
Conduct a thorough research about the company and its policies on individual basis before applying for a loan with it. This will help you to avoid any pitfall that may land you in serious trouble in future.