Ever since companies started to offer online no telecheck loans, taking advantage of such a solution for financial distress has become a really controversial topic. Also referred to as online payday loans, payroll advance, cash checking, and even deferred deposit, such types of loans were mainly offered as short-term and high interest loans. Generally speaking, they are a perfect option for those people who are in dire need of cash. If you are in a situation where you’ve got no other choice but to apply for this kind of loan, it is important that you make yourself familiar with it first.
When Did Cash Advances Begin?
Payday loans came into existence in the early 1920s. There were no online loans back then, of course, but check cashing stores became really popular. It all started when companies began to use checks instead of cash to pay their employees. The success of such lending companies could be attributed to the fact that banks didn’t really encourage people with low income to apply loans from them. As years went by, this type of business diversified and later on, these companies included salary advances amongst the services they offer.
What Exactly Are Overnight Loans?
They are small and unguaranteed loans that allow clients to borrow anywhere from $500 to $1500. These types of loans come with very short terms, which means they need to be paid back really quick. In most cases, no credit check companies give their borrowers between 14 and 30 days to settle their loans. Much like any other kinds of loans, cash advances are regulated by the government and there are certain laws that govern such loans’ rates and terms.
Who Benefits from Online No Telecheck Loans?
Considering how easy and simple it is to apply for overnight cash advances, they are often the perfect option for people in financial emergencies. In applying for a faxless payday loan, borrowers will not be required to undergo a credit check and they will also not be asked to submit any documents to prove their credit standing. It also takes very little time for the loan application process, usually within 24 hours only.
What Makes Online Loans Not A Good Option?
In comparison to any other types of loans, online no telecheck loans are a lot more expensive. As a matter of fact, the average annual loan rate for a same day payday loan is approximately 400%. What’s overwhelming is that this could reach as much as 5000% as compared with the standard APR which is 12%. Another thing to be aware of as you try to apply is that there are some payday companies that are trying to mislead their customers just to get them to apply for a loan. With that said, there is no doubt that you should be extra careful when choosing a payday company to get online no telecheck loans from.