Are All Payday Loan Companies The Same?

Given the bad rap that payday loans and short term cash advances often receive in the media, it is no wonder that there is some confusion in regards to the actual payday loan companies themselves. There are differences that you need to be aware of, especially if you are thinking about getting a loan to tide you over. Although there is often negative publicity, payday loans also have their advantages and you need to be aware of these as well.

Basically there are payday loan companies that offer their short term financial services from a physical location, and then there are those that are available and accessible online. The physical locations may also have a web presence in order to extend their services to a wider base than their current location achieves. Alongside these payday loan companies, there are also payday loan directories that can match you with a lender, based on the information that you provide to them. Many of the actual sites you find online will be a directory service that conveniently locates lenders to suit your circumstances.

You will find payday loan companies with a physical storefront location in many shopping malls and local neighbourhood centres. These can also be convenient when you need emergency cash, however some people can get a little embarrassed about others seeing them entering the store. The main difference with a store front and online lenders is that the store front will often have the cash to hand over to you on the spot. Payday loan companies that offer their services online will need to deposit the money into your bank account. Although this may not be immediate, most companies will actually transfer the funds to your account on the same day that you are approved. So both methods of short term lending have their advantages and disadvantages.

You will always need to be wary when you are shopping online for a short term loan because there are still those that set up fraudulent sites in order to get some valuable dollars from you. When you approach payday loan companies, whether that is online or offline, you won't need to pay the interest fees or application fees, if any, upfront. If you come across a site that is asking you to pay a fee for their service upfront, then your radar should go up and you need to reconsider your options. When you are short of cash you often wouldn't have this extra money on hand anyway and reputable payday loan companies understand this.

Reputable payday loan companies will inform you of all the fees and charges that may occur, including what will happen if you default on the loan. You should not be left guessing when you apply for a short term loan of any type, and before accepting the offer that is being made to you, it is in your best interests to read over all of the terms and conditions again, just to be sure. If you have applied for a short term loan and you have been provided with an acceptance offer, you are still under no obligation to go ahead with the loan if you change your mind. Of course, once you have already accepted the offer from the lender, you will need to see it through until the loan is repaid in full, including any interest and fees that may be charged.

Payday loan companies will all provide a short term loan solution for those that need them, however they are not all the same and will also have their own sets of terms and conditions. Many may be extremely similar, however it is important that you look for the differences before accepting any offer that is provided to you.