In these difficult economic times, many people are turning to small, short-term loans as the answer to their current financial troubles. Online companies, such as Money Mutual, help match people with a lender that will provide them with a quick and easy short-term loan. As opposed to the usual long, and sometimes difficult, traditional loan process, these types of loans offer a quick process and almost immediate money in your bank account. Lenders that are part of Money Mutual’s network of participating lenders provide customers with a small amount of money, usually under $1,000. Since most of these borrowers use this cash advance in order to cover their everyday expenses until their next paycheck, they are sometimes referred to as payday loans.
Short term cash loans are often used as an alternative to traditional loans because of their fast approval processes, one-time fees, and quick repayment plans. For many years now, borrowers wishing to take out a loan of this kind had to physically go into a payday loan store. After providing some personal information and being approved, they usually receive a small cash advance immediately. At the date of their next paycheck, they then agree to return to the store in person and repay the loan in full. As an assurance to the lender, sometimes the borrower is required to write a postdated check for the amount of the loan. If the date of their payday comes and goes without repayment, the lender is then within its rights to redeem this check. The check, therefore, also serves as an incentive for the customer to show up. If the check is redeemed and bounces due to insufficient funds, the borrower will then be facing bank fees in addition to the owed money. The lender may also add late fees or increased interest to the outstanding amount at its discretion.
Due to the now widespread use of the Internet, many payday loan borrowers are turning to online lenders. Companies such as Money Mutual, have risen in popularity over the last few years due to the convenience of their loan application process. While Money Mutual does not directly provide short term cash loans, it does have a large network of participating online lenders that specialize in this type of cash advance. After providing some personal information, customers are matched with a lender and directed to the lender’s website. Here, the loan is finalized and borrowers usually receive their money via direct deposit within 24 hours. While every lender has their own set of requirements, they rarely perform credit checks–a vast improvement over the traditional retail payday loan model. In fact, most lenders just require a steady source of income.