Although banks have tightened up the restrictions on lending, direct loans are more widely available then at any time in U.S. history. Payday lenders, pawn shops, car title loan storefronts, and many more – if you need a short term, unsecured loan, you won’t need to look very far.
In some states, there are more payday loan storefronts than Starbucks or McDonalds. As Ripley used to say, believe it or not!
But even as payday shops hit all-time record levels, they are facing an inevitable decline. More and more lenders are trying to reach a broader market and save money on overhead by moving their business entirely online.
An online payday lender can achieve the exact same goal – getting short term direct loans to the people who need them most – while keeping costs low, speeding up the process, and making it more convenient for customers.
Why You Should Use Online Payday Loans
No matter how many loan stores there are, no matter how close they may be to your home, they will never be as close as your own home. They will never be as close as the smartphone in your pocket, or the tablet on the dash of your car.
When you choose an online lender, everything you need is right there on the screen. You don’t have to get dressed, go to the car, find parking, wait in line, fill out a paper application, and deal with the person behind the counter. Perhaps doing all of that might only take an hour – but online you can have the entire process complete, and even receive an approval, within minutes.
Time & Place, Place & Time
And if there isn’t a convenient local lender close by, that makes going online all the smarter. The internet has no boundaries or distances: another aspect of convenience is competition – when you open your web browser and search for lenders, you don’t have to settle for whoever is closest, you have your pick of thousands of lenders. This gives you the luxury of finding the one that is right for you.
Who has the best rates? Do they have a grace period? What’s their cancellation policy? All of these answers are at your fingertips. You have the power to pick and choose your lender and your loan, so why settle for “whoever is close”?
Another problem with storefront lenders are those pesky hours of operation. Unfortunately money problems don’t always happen between 9am and 5pm, they can and often do come at the most inopportune times. Because they don’t have to operate a full store, an online business has more freedom to remain staffed and operational 24 hours a day.
Security and privacy are of paramount importance in our day and age, both with our sensitive personal information and our finances. Some might try and argue that a storefront will give you more privacy and security, but this is completely false.
But what about security? With identity thieves and scammers abound, isn’t logging on much more dangerous that dealing with someone face to face?
Not at all, for two very good reasons
- The top online payday lenders are all heavily secured. They operate on HTTPS URLs, which means they are verified as safe and protected. Most sites will proudly proclaim of what security measures they have on their site, to assure you that your sensitive data is encrypted.
- When you go into a payday loan store, all your information is STILL being entered in a computer. It may be entered by someone else, but that sensitive data is still be put onto the web. Do you think that storefront will have the same top-notch security as a dedicated online payday lender? Doubtful.