Payday Loans - Frequently Asked Questions

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.