Not every online payday site is good enough for its borrowers ( well in reality none of them are good ). Some sites have major issues which will create problems and that should be avoided. To find good site you will have to sift through many bad sites, and to help you with that I will list more advanced parameters you should use when you search for a reliable online payday loan site. Some basic things you should look into will be omitted in this article, you should already have that knowledge imprinted in your brain.
Standard repayment period of the loan is your next paycheck, but that is not true for all sites. And different repayment period means different APR so you should look into what options does a site offer when it comes to maximum terms of loan and all other technical details that come with that.
Whether the site supports automatic withdrawal In repayment of the loan or not is one important thing that is overlooked more than often. If the site supports this then it means that it will automatically withdraw designated amount from your bank account when repayment period comes to the end. This makes repayment of the loan easier because you don’t have to care about whether you might breach the repayment period or not, but it also might be a hindrance. You might have been in a process of extending repayment period because you need that money for something else, and this system comes to play and withdraws that money from your bank account.
Many online payday loan sites offer the ability to extend repayment period on a loan, but few of them give you straight penalties that come with it. I call them penalties because they are penalties. No site will give you an extension without consequences. Those consequences include increased interest rate or some other form of fee that must be paid on top of everything. In general using payment extensions on payday loans, both online and regular, was never and it will never be smart idea.
Loan rollover ( taking new loan and automatic partial payment of the old loan ) is optional and up to lender in the world of online payday loans. Whether this is available or not is all up to lender, as well as terms on which this can be used. Some sites will give you this option without any penalties or benefits, but the number of those sites is not high. Many sites will include a penalty or two if you go for this service, so be careful when choosing to do that.
When it comes to penalties I should also mention penalties for early payoff of the loan. This is not free in online payday lending. Many sites have penalties that must be paid if you have a desire to clean out a loan before its repayment date. This practice is just wrong, and instead of giving you benefits for being good customer they will make you pay more.