Check the Lender’s APR Policies
One of the fastest ways to identify a bad deal is the little to no focus on the APR on the lender’s website. A trustworthy lender will be honest and upfront with you about the gross amount of your loan. If you cannot find the interest rates easily on a lender’s website, that is usually a big, bright red flag.
Incidentally, if the focus is on a long-term loan, that is usually a pretty good sign you should be looking at another option. Longer repayment terms – especially considering higher interest rates – can most certainly mean you will end up paying twice or even three times as much as you originally borrowed in interest alone.
Beware of TooGood Deals
Does your lender promise absolutely no credit checks? Are they offering the ideal amount and then some, with little to no inquiries? If a deal seems like it is too good to be true, that is probably because it is.
While these platforms are suitable for a fast and easy way to acquire money, you should still be wary of lenders trying to rush you into a decision or that are just a little too insistent you take their deal.
Many people online will take advantage of your desperation about wanting to handle an emergency. They will paint an ideal picture and then keep you hooked, in many cases driving you into a seemingly inescapable debt cycle – emphasis on seemingly. There are many ways to get out of a bad deal. But trust us, it is better to avoid them altogether. So, do not let your stress get in your way, and really do your research before accepting any deal.
After reading this article, we are sure you still have questions. This is understandable, as incurring debt of any kind is a hassle all in itself. Adding to that, the fear of scams, predatory loans, and other risks makes you second guess everything. But, as they always say, knowledge is power, so make sure you find out as much as you can before making any decisions.
Requirements will vary from lender to lender, but most online loan networks follow a basic list of requirements. For starters, you have to be a U.S. citizen or permanent resident of at least 18 years of age with a valid bank account. Depending on the network you choose, you will need to present proof of a monthly income of $800 or $1,000. Aside from that, you will need to provide a valid phone number and/or email address as well.
Furthermore, there are other specific requirements, such as credit history and other pertinent, additional information, to be finessed once you are in contact with a potential lender.
Q2. Do I need a checking account to apply for a loan?
Requirements vary. However, a valid checking account is almost always a must, especially if you are putting in the request online through one of the online payday loan networks listed above.
Once you have connected with a potential lender after filling in the form on the website of your choosing, you may verify the specific requests of the lender. This includes not only whether you need to have an active checking account but also other pertinent information such as rates, terms, and policies.
Remember, you are not obligated to accept any loan offer that does not fit your needs. If you have any reason to mistrust or be uncomfortable with the terms of the lender provided, you can always try with another one that offers you a better deal.