You may have heard about different payday loans and lenders but the fact of the matter is they all pretty much the same. The idea is a lender lends you money for short term (14-18 days) in exchange for a fee, which is about 15%-30% of the amount you borrow. The only difference between lenders usually is how much they charge for their service. Some lenders may go as low as 15% on every $100 borrowed and some can charge as much as 35%. Payday loans are one of the most expensive loans available on the market. If you borrow $1,000 for a month, you will have to pay back $1150-$1350.

Almost all of the lenders operating online offer faxless payday loans. This eliminates unnecessary paperwork. The whole process is electronic, involving no documents whatsoever. Payday loans with no faxing may be call a true ripoff to customers (because they are), but they can help all those who can’t get money from other sources. No faxing payday loan direct lenders take full advantage of people with low income and poor credit rating. On the other hand, they are willing to lend money to what other financial institutions call high risk borrowers.

Do people in the United States, Canada or the UK need payday loan lenders? The answer is yes, but the government should further regulate this kind of businesses, cutting down the amount they can charge so that the lenders comply with the usury laws. This site is paid by direct lenders for each successful application and we don’t mind making less money for the benefit of the borrower. The current rates lenders charge are overwhelmingly too high.

No Faxing Loans May Be Misleading

One of the first things you must know about online loans is that they might be misleading. The signs and promises lenders have posted on the websites are just there to tempt you to sign up. In fact, you will actually see the fine print at the bottom of the website that interest rates are not guaranteed and will usually be offered on an individual basis. This is not good advertising because you might be tempted to sign up for online loans because you saw that interest rates they were offering were low only to find yourself with a really high interest rate once you sign up. And it is too late to turn back because the lending agency has already sent the money into your account. So, you are left with money in your account and a promise that next month you will be paying a really high monthly payment.

When you look for websites that offer quick loans, you have to be careful to check if you are really dealing with a legitimate website because a lot of the websites are actually just third-party webpages that will collect your information then send it to another company that may use your data for other purposes. If you think that you are not on a legitimate website, stop what you are doing at the moment and if possible, disconnect from the Internet to avoid any more information to be collected without your knowledge. Remember that some of these sites have malware programs installed which will automatically run in the computer’s background to track down any confidential information you may input.

Help Yourself Fix Your Finances

The only thing you can do to avoid online loans with monthly payments is to prevent being in the situation where you need that extra money. If it is the holiday season, then be thankful that it is over and start saving already. If you needed money because of an accident or medical bills, then keep healthy.