Aug 04, 2010 Matt Vitko
These days, the Internet makes nearly everything faster, easier, and more convenient including your payday loan. Getting a short term loan has even become more convenient with the growing number of online payday loan sites. And with current state regulations, they may become more popular than the brick and mortar variety. Although the business model is similar - loans are typically a few hundred dollars and are due on the borrower's next payday - there are a couple of marked differences.
The most obvious difference of the online payday loan is the level of privacy and anonymity. Applying for a payday loan over the internet is private and the borrower does not sacrificing convenience. For those borrowers that are sensitive of their privacy and are concerned about the risk of being seen by friends, neighbors or coworkers at the payday loan store, the online payday site provides immediate service and the borrower's friends and neighbors don't ever have to know.
Recent state regulations highlight another obvious difference between online lenders and payday loan stores. Online payday lenders can still serve consumers that live in states that have prohibited or restricted payday loans. Although many companies restrict their business in certain states, consumers that are seeking out payday loans online can typically find lenders that will write their loan.
Of course, the industry and consumer protection advocates will both recommend that regardless of whether consumers use online payday lender or payday loan stores, they need to be prudent and responsible in their use of these alternative financing sources.