In the last few years payday loan companies have popped up and begun offering short-term, high interest loans secured by clients’ paychecks. They solve temporary cash shortage problems but can also create new ones. Loans must be repaid in a very short time, trapping many borrowers in debt cycles. As a result, thousands of clients are switching to online providers like Maxlend Loans. Borrowers do not have to have perfect credit and applying is simple. Return customers can also qualify for higher loan amounts.
Requirements Are Customer Friendly
Many customers prefer to deal with online lenders because qualifying for their loans is simple and the companies have a high rate of approval. Customers are offered installment loans with set amounts that are due on scheduled dates. Applicants must be U.S. citizens and at least 18 years old. They need to have verifiable income and checking account that meet minimum standards. However, applicants are disqualified if they intend to file for bankruptcy or are debtors in current bankruptcies.
The Loan Process Is Easy
Clients also like the fact that online lenders offer a basic application and approval process. Customers fill out an online form. A customer service representative calls each applicant to verify information and then sends them a copy of their application. Short-term loan companies routinely make loans to borrowers with bad credit or even no credit histories. Once approved loan proceeds are deposited directly into the bank account the customer listed. In many cases, clients have their money in one business day after applying.
Return Customers Enjoy Perks
Short-term online loan companies deliberately keep borrowing limits low so that customers avoid debt traps and have better chances of approval. However, return customers with good repayment records are rewarded with increased limits. A first-time borrower qualifies for a maximum of $1,200 but over time may be able to borrow as much as $2,000.
Thousands of borrowers who once relied on payday loans for emergency funds now use online lenders who specialize in short-term loans. Application and approval processes are simple. A majority of applicants qualify and many get their money one business day after applying.