While pay day loans have been well established in the US for many years, they are a relatively new service for residents. The use of pay day loans in the increased by 130% in the 2007/08, and has continued to rise dramatically. The rapid increase in demand for pay day loans in the has led to an equally rapid increase in the number of lenders. The development of online lenders has meant that there is now a very wide range of companies for anyone in the who wants an online pay day loan.
Unlike in the US, where there are state laws governing and restricting the use of pay day loans, there are no such restrictions in the. There are no imitations on charges made for pay day lending in the, apart from the need to display the APR in all advertising. This lack of regulation also means that any pay day lender operating in the can lend money to anyone resident anywhere in the. This too is different to the US, where the state you live in governs what you can get.
The only downside of this rapid expansion and absence of restriction is that it is very difficult to sort out who are the reliable and honest lenders by just looking at a series of websites and adverts. The lender you choose is an extremely important decision, because there is more at stake than just how fast they approve you and how much they will lend.
The problem is that among these new companies are a certain number who set out to exploit people who are in urgent need to cash. They have astonishingly high penalty charges for any late payment, and if you are even slightly late or wish to extend the loan, they have you by the short and curlies. This kind of activity has attracted much negative attention to the pay day lending industry recently. So the most important part of the process of getting cash through pay day loans is to find a lender that you know to be reputable and reliable.
As well as finding a reputable lender, you also need to understand how to identify one that also has a fast application and approval process. For example, there is no real need for a pay day lender to be carrying out a credit check on you. It simply is not necessary and those who do are wasting time and putting barriers between you and the cash. To be confident of getting their money back, all they need to know is that you have a steady income and a bank account. They will want to check that you earn enough and probably that you have a debit card too, but that should be about it.
You should ideally have a shortlist of online pay day lenders who are known to be well established and reputable, who have fast and simple application processes, who have high rates of approval for loans and who do not ask for unnecessary faxing of documents. You then have a safe list to work through, just in case the first one or more do not approve you for a loan.
The easiest way to start is to follow recommendations for pay day lenders who meet these criteria. By using recommended companies that are the result of substantial research and checking, you can save yourself a lot of time and still have room to exercise your own choice over which lender you prefer.
Read recommendations for the most reputable lenders for direct payday loans, as well as the best US lenders. K D Garrow has worked as a senior manager with significant financial responsibility for the last twenty years. His help with debt website offers free, unbiased advice on a range of debt related issues, including debt settlement and debt management plans.