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Another option for borrowers with
bad credit or a need for quick cash is an online
cash advance which are now available to borrowers with
internet access through sites that give online payday loans. Unlike a conventional shop to pawn in Washington DC, the
complete process is
done online with no need for faxing or phone calls. The cash is wired into the borrower's checking
account the next day. Payday loans from $100-$1000 loans can then
automatically repaid from the borrower's next paycheck. The process is done via a quickly via
online application. Payday loans are available from $100 to $1000
and are then wired to the borrower's checking account the next day
for immediate withdrawal.
The following comparison matrix
highlights the lending policies of the top three online lenders.
Payday
OK
is the leader of the pack with it's low lending rates (half that
of other lenders), but Direct
Deposit Payday and A
Loan Yes have lowered their
income requirements to $1000, attracting Social Security
recipients and the unemployed as customers. The average loan
applicant usually has either poor credit or poor access to ready
funds, but with paycheck loans, the loan is secured for both
parties.
|
Comparison
Matrix
Top 3 Online Pawn Shops
For Paycheck Loans
|
| |
Direct
Deposit Payday |
A
Loan Yes |
Payday
OK |
| Limit
for first loan |
$100-$500 |
$100-$500 |
$100-$500 |
| Application
fee |
$0 for
first loan |
$30 |
$0 |
| Interest
rate till loan repaid: |
20%
($20 per $100 borrowed) |
20%
($20 per $100 borrowed) |
10%
($10 per $100 borrowed) |
| Fax
required |
No |
Yes |
No |
| Option
to renew loan |
Yes,
fee applies |
No |
Yes,
fee applies |
| Direct
deposit needed |
No |
No |
No |
| Contact
by phone as well as email? |
No |
No |
Yes |
| Income
required? |
$1000/month |
$1000/month |
$1200/month |
| When
are funds available at borrower's bank? |
Next
day |
Next
day |
Next
day |
|