Cash Advance Check Loans - Are Online Cash Stores More Expensive Than Offline Stores?

Posted by Nick Niesen on November 8th, 2010

Online cash stores offer a variety of rates. More often than not, they are less expensive than offline stores. Of course there are companies that offer extremely high rates, but you can avoid them if you shop around. In fact, that is one of the biggest advantages to online stores ? you can compare rates in minutes to find the lowest finance fees.

Fees To Look For

Most cash stores charge a flat fee rather than a percentage of your payday loan. Some online cash stores also charge an application fee. By shopping around you can find lenders who don?t charge this. And some of these lenders will waive the fee for first time borrowers.

When you are comparing fees, you should look at the APR or annual percentage rate. This number is what the loan would cost if you carried it for an entire year. While most customers make their payment in less than a month, the APR allows you to make quick comparisons.

Watch Out For High Rates

Don?t sign up for the first cash advance offer you get. Shop for rates first. You can do this by calling around, but an easier way is to look up rates on line. You can find the APR or fees either under ?Fees? or the ?FAQ? section. If you can?t find numbers to compare, email the company.

You also want to pay attention to how long the loan fees are for and make sure you compare the same numbers. For instance, if you need a cash advance for 14 days, look at the finance fees for the 14 day period with each lender.

Understand Payment Plans

Another way lenders can take advantage of your situation is by delaying your payments. Lenders who only deduct the minimum payment rather than the total amount will charge you more in finance fees. Initially these lenders may have low rates, but by adding more time to your loan, you rack up finance charges.

If you choose to go with one of these lenders, make sure you set up a full payment on your payday. That way you will pay the minimum finance fees, keeping money in your pocket.