Online Payday Loans are Quicker and More Transparent

The term “ short term payday loans” is a meaningless repetition of words that mean the same thing. Short term loans and payday loans are one and the same thing. The term payday loan was coined to emphasize the fact that this particular type of loan was taken for a very short term; till the next payday. Since the next payday could be a maximum of 30 days away, payday loans were meant to be for taken for a month or given a further grace period of 10 to 12 days beyond a month.

The only difference between conventional payday loans and online payday loans is that in a conventional loan one has to ask for a loan from a company or person by physically meeting the person and take the loan if you are able to convince the person of your credit worthiness. Whereas short term payday loans can be got by applying online and getting them sanctioned online after proving your ability to return the loan without having to meet with anyone.

Short term or payday loans are for emergencies when you need the money urgently and the payday is some days or weeks away. Online payday loans are more transparent as everything; terms and conditions, rate of interest, transaction and other fees are all calculated and shown to you before you decide to accept the loan that is offered. There are no hidden costs and there is no delay in sanction or disbursement. This is the main and positive advantage that online payday loans have over conventional payday loans.

Payday Loans Have to be Repaid on the Next Payday

There are many terms that are similar and it is desirable to understand the differences between these as the differences are quite subtle. Payday loans are short term loans of small amounts that are meant to be returned on the next payday. Short term loans however can be of a larger amount but the duration of repaying the loan is short. Thus a payday loan is the same as a short term loan but short term loan is not necessarily a small amount payday loan.

You can get best online payday loans by comparing the interest rates and terms of several online finance companies that offer such loans. It is easily possible to do so as you can access these websites and get the relevant information without delay. The best online payday loans are from those finance companies that are transparent in their dealings and give all information regarding what they charge and what their terms are.

Most good finance companies that offer short term payday loans online offer good interest rates and other terms and are also transparent. However, it should be remembered that short term or payday loans accrue a much larger rate of interest that normal loans that you get from housing finance companies or banks. It is affordable to take a payday loan and repay it on the day it is due only because the amount borrowed is small and the term of loan is really short. If  both these conditions were not true, it would have been almost impossible for anyone to borrow money at that rate of interest.