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Online cash advances have numerous risks
It can be tough borrowing money if you have bad credit. Most traditional lenders, such as banks or credit unions, will conduct a credit check as a prerequisite to extending a loan to a customer. If you have no credit, or a previous bankruptcy, it can be tough to borrow money from such lenders. The payday loan industry arose to offer short term financing to customers with little or no credit, and the industry is doing brisk business. There are now more payday loan stores in the United States than McDonald’s, Burger King and Subway restaurants combined.
Such loans come with a price; the interest rates, or “fees” charged for these loans can amount to several hundred percent per year when viewed as annual interest. Lenders discount such claims, pointing out that their products are offered for two weeks only, and that these are intended to be short term loans. While they may be expensive, they are, indeed, easy to obtain, and borrowers need only have a bank account and proof of income to qualify.
An extension of the brick and mortar payday loan industry is the online lending industry, and there are now thousands of Websites that offer short term loans. The loans are just as easy to obtain, and the lenders say that they can put the cash directly into your bank account in as little as 24 hours. The convenience of doing business right from your computer, rather than heading down to your local lender, has encouraged untold numbers of people to borrow money online. Consumers should be aware, however, that borrowing from such lenders can be quite risky.
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