There has been a recent backlash against unscrupulous lenders and shady financial institutions. The Great Recession has cast a negative light on lenders of all stripes. Many of these lenders offer short-term loans, otherwise known as payday advance loans. You hear advertisements from these types of lenders all the time on radio, television, and even on the Internet.
Payday lenders operate under the same formula across the board. They loan you an amount of moneyfor a small fee and the balance is due on your next payday. In many cases, the amount you owe is debited directly from your bank account. Payday loans are viewed in the same light as other forms of credit and are bound by the federal Truth and Lending Act. This means that lenders are obligated to disclose the terms of your loan and the interest rate you are being charged as an annualized number in writing before issuing the payment. If you encounter a lender who does not comply with this regulation, it is best to stay away.
While there are some companies that do not follow responsible lending practices, there are still many companies out there that you can trust when you need a short-term loan. One of the first things to look for in a responsible lender is their accreditation. Trusted lenders will be associated with the Community Financial Service Association of America (CFSA) and the Online Lender's Alliance (OLA). You’ll also want to use a lender who ensures that your information is secure and uses the most advanced technology. This would include websites that implement secure socket layer (SSL) encryption and Verified Site Certificates.
Obtaining payday advance loans has become easier than ever for those who qualify. Applications can take around 20 minutes and the money can be in your bank account in as little as 24 hours. This quick turnaround ensures that you’ll have access to the money you need when you need it. There are also companies that offer multiple types of loans and repayment options, depending on what you are looking for. There are loans that are paid off in a single payment and others that you can pay back on a flexible schedule over many months. If you visit the MoneyKey website, you’ll find a lender that even offerslines of creditsimilar to those from a large bank.
Payday loans can be a great source of credit when you have an emergency or simply need a bridge to get to your next paycheck. It’s important to remember that like all types of credit, payday loans always need to be paid back—they’re not magical supplements to your income. Make sure that you are dealing with a responsible lender like MoneyKey and that you do not overextend yourself when it comes to repayment terms.