Read along while we go over the main difference between internet and storefront payday loans.
The payday loan world can be confusing with laws, regulations, and disguises. Many government bodies want to help the citizens by protecting them from greedy lenders, but in some cases, the laws confuse everyone.
Also, the variation of the laws from state to state makes it difficult for most people to figure out exactly what is best for them.
One of these issues is the difference between internet and storefront payday loans. The article below will hopefully help you understand the difference between internet and storefront payday loans as they pertain to the different states within the country.
Online Payday Loans
Many people find it increasingly convenient to use online payday loans to fill the gap in their income. Families who have found their income drop due to the economic crisis since 2008 have been prone to borrowing from a convenient online outlet. Still, there are a few factors that every borrower should know about online loans.
First, the amounts they are allowed to give out should vary depending on the state. If you are in a lenient state, you might get to borrow anywhere from $500 – $1000 from an online lender, but in some states, it is even less. Many lenders like Check N Go are issuing installment loans that can go up to $2500.00, which can also be borrowed online.
Another important factor is that online payday loan lenders must be licensed in each state. There is an illegal activity if you borrow money from an online outlet that is not licensed in your state. Make sure you look up the payday loan laws of your state and see which sites are licensed for you to use.
Storefront Payday Loans
The storefront payday loans are a little safer because you do not have to worry about whether they are licensed. For the most part, they will be licensed if they operate out of a storefront. Still, this does not mean they are not trying to break the rules to make more money.
In fact, some storefront owners will intentionally offer you more money if you need it so that they can collect a higher interest rate than would normally be allowed by state law.
Make sure you are aware of the state laws in your state as they pertain to storefront lenders. It may be easier to get cash immediately, but they will also be able to harass you in order to get their money back.
Difference Between Internet and Storefront Payday Loans
The difference between internet and storefront payday loans is quite great in some respects. When consolidating payday loans, let the company you are speaking to know what lenders you owe so they can tailor the right quote for you.
Sometimes the consolidation agency will have far better contacts with online lenders, making their job easier. Another important note is most consolidation companies will not work with storefront loans. Make sure you consider all of these differences before deciding whether you will borrow payday loans from an online or a storefront lender.
