What is a payday loan? A payday loan is cash in advance which provides
emergency cash between paydays. The loan is usually made on your
next paycheck. Most payday loan lenders seldom require credit checks.
In most cases, funds are available in less than twenty four hours.
Can anybody get a payday loan? No, generally, to get approved for
a payday loan you must be at least eighteen years of age, have a
valid checking account, and have a current job or regular income,
(usually earning at least one thousand dollars per month). Past
credit history does not make a difference in most payday loans.
Most likely, you will still qualify even if you have had bankruptcies,
charge offs, or other credit hassles.
How much can I borrow? The amount of money you can borrow will
vary, depending on your monthly income. Many payday loan lenders
will loan up to five hundred dollars, sometimes even one thousand
dollars until your next payday. What if I can not pay the money
back by the next payday? Many payday loan services will give you
extension on your loan. Generally, you will be charged for the interest
fee on the day the loan has been repaid in addition to a new set
of fees and interest. It is recommended to be absolutely certain
you can fully repay the loan.
How much will payday loan cost? The average cost of a payday loan
normally ranges between fifteen and thirty dollars for every one
hundred borrowed. The loan should be paid back in full by the next
payday. A payday loan is recommended for emergency situations, (like
having your lights shut of or bouncing a check). In situations such
as these, a payday loan would be less expensive.
How does it work? Generally, all you need is a paycheck and an
identification card. You will write a postdated check to be cashed
when your next paycheck comes. Many companies offer the convenience
of “same day”, or “next day” cash. What
if I get paid one time a month? Usually, your payment due date must
not exceed 30 days. If your next payday is more than 30 days and
funds will not be available you may have to submit a please submit
a "Request for Extension”.
How do I repay the payday loan? Most Payday loan companies allow
you to pay back your loan directly through your checking account
using a wire transfer. Can I get an extension or repayment? Generally
you can get extensions, however there would be an extra charge.
Can I be penalized for paying off the payday loan early? No, repaying
your payday loan early has no penalties.
How do I receive my payday loan? Most companies require you to
have either an active checking or savings account. In most cases
the money is wired into your account.
Are there restrictions on how the payday loan is spent? No, you
can spend the money in any way you like.
© 2006 Payday Loan Information.