Online Payday Loans an Overview

Lately I have been inundated with offers for an immediate deposit of $1500 into my checking account. Anytime I see offers of money in my junk mailbox, my antenna go up and I see or think scam. Are these offers legitimate or are they ways to steal my identity?

Let’s look into these online payday loans logically.

First: Is it a reputable company?
I have found it hard to verify the authenticity of these offers. Most of them, if I am brave enough to click on them, offer a myriad of pop-ups before you finally get to the actual meat of the offer. This alone raises my suspicions.

Second: If you provide the information requested, will you actually receive the loan?
Okay, you have decided to fall for the offer and fill in the application. When it comes to the part where you must provide your bank account information and social security number you hesitate. To fill this out is taking a giant leap of faith in humanity. I have actually filled one or two of these applications out. So far I have not been robbed blind, nor has my bank account been pilfered.

Third: What happens now?
Two scenarios here: 1) you are given a thank you’ your information has been forwarded to possible lenders. This is not exactly what you were expecting. 2) You receive an offer of MUCH less than the advertisement said. Instead of $1500 you are offered $300; quite a let down in my book.

Fourth: What happens when I accept the offer?
You agree to the $300 payday loan to see what happens. First you are given documents: Terms of Agreement; Loan Agreement; etc. Read these carefully and print them out BEFORE you click that final okay button. You might be very unpleasantly surprised if you fail to follow this step and do not read the terms.

Fifth: Do I or Don’t I take the offer?
This is entirely up to you. I took the plunge and after I re-read the terms, immediately followed the instructions on CANCELLING the loan request. Interest rates for these payday loans are sometimes over 136%. You borrow $300 and in two weeks (or your very next payday) you have $470 deducted from your checking account. Was it worth it?

It has been my experience that payday loans are only a short fix and they cause more pain in the long term. My advice: Stay away from online payday loans.