Sara Routhier, Managing Editor of Features and Outreach, has professional experience as an educator, SEO specialist, and content marketer. She has over five years of experience in the insurance industry. As a researcher, data nerd, writer, and editor she strives to curate educational, enlightening articles that provide you with the must-know facts and best-kept secrets within the overwhelming worl...

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Joel Ohman is the CEO of a private equity-backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He also has an MBA from the University of South Florida. ...

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Reviewed by Joel Ohman
Founder, CFP®

UPDATED: Jan 5, 2012

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Now that payday loans are available online, it’s far easier and more efficient to acquire cash than ever before. Borrowers don’t need to get bank statements together, or have a fax machine, or even write a check. Instead they’re able to fill out quick online forms from the comfort of their own home. Then in a matter of minutes, borrowers can see cash deposited directly into their bank accounts.

 

What’s the difference?

 

When applying for financing in person, the small corner lenders require borrowers to bring in pay stubs, statements, references, and a check book. After submitting all of the requested information, borrowers would then sit idle while the lender verifies their references and proof of employ. But now borrowers can avoid that hassle by applying for payday loans online. By simply filling out an internet form, borrowers can finish the application process in just a few minutes time. Then in as little as an hour, the consumer can have access to the money they sought.

 

Applying online still does require the borrower to submit their information, but instead of requiring borrowers to fax their proof over, the lenders themselves will do the research. Borrowers need only specify what their bank account number is, where they work, how much they make, and when their next paycheck is scheduled to come through. Then the lenders will cross-reference that information by making the phone calls themselves, sparing the borrower from any of the heavy labor.

 

After verifying all of the borrower’s information, the lender will then issue the requested payday loan.

 

Internet worries

 

Some borrowers find themselves growing nervous when online payday loan application forms request their bank account number and social security number, but if applying for money from a trusted and established website, then a borrower’s information should be completely secure.

 

Bank account numbers are required since there is no physical interaction between borrower and lender. Instead all money is deposited directly into a borrower’s bank account, and any payment can be taken directly out of the borrower’s bank account.

 

The social security number is simply used as a precautionary device that’s necessary to secure the lender’s money. In the event a borrower defaults, or submits false information to the lender, the social security number may be used to identify the borrower.