On the surface, applying for an online payday loan seems easy because the process is quick and you’re able to see the interest rates before you submit your agreement. However, there are some additional fees you might be charged with, and while they aren’t big, it might still come as an unpleasant surprise. That’s why you need to know about three types of additional fees that might pop up while you’re filling out your application form.
The application fee isn’t applied normally — however, you may come across the less known sites that will automatically include one into the overall amount you’ll have to cover. It’s commonly known as a broker’s fee where you have to pay for being connected to a lender. The conditions offered by such sites are rather limiting.
Something as common as a transmission fee is often forgotten by people who are in a hurry to apply for an online payday loan. While it’s self-evident that for your money to safely arrive at your card, a minor amount will be deducted, there are certain intricacies about the transmission fee that you should know. It might be added to the amount of interest you’re going to be charged with when applying for an online loan.
Whether it is in such a way, depends on the company you’re going to use, so pay close attention to this aspect. The good news is, you’ll only have to pay this fee once, only if your application is approved, and the amount you’ll be charged with will be minor to the point of being barely noticeable.
Late Payment Fee & Overdraft Fee
When applying for an online payday loan, you have to watch out for the end-date of your agreement before you submit your application. Otherwise, if you fail to pay everything back on time, the agreement will be renewed and you’ll be automatically charged with late payment fees. They can be quite expensive and your failure to pay on time will be turning into a bigger financial burden the more late payment fees are applied.
It’s also essential if you want to avoid the overdraft fee that you’ll also be charged with. If per your agreement, the payment is attempted to be withdrawn and you don’t have enough money in your account, you’ll face an additional overdraft fee, the mention of which you won’t find in the initial agreement. There are also several consequences that you can face in case of failing to pay off the loan:
- collection calls;
- bank withdrawals;
- court summon.
There are several types of additional fees you may encounter when applying for an online payday loan. To avoid these stressful surprises, you should study all information carefully and determine what amount you’d like to borrow.