QandAs: Loans

What is a Payday Loan?

Answer:
A payday loan or sometimes known as a cash advance

is a small, short-term loan designed for consumers who need cash between paychecks. The amount you can borrow ranges from $100 to $1,500. Payday lenders require proof of sufficient income and a checking account, but do not consider your credit history.

Click here for a free, no obligation pay day loan quote .

You must also give the lender a post-dated check for the principal plus the loan fee or authorize the lender to take the money from your account electronically. At the end of the loan period (usually 14 days), the lender will deposit your check or debit your account to cover the loan.

In most cases, you have the option of extending the loan for another 14 days, but a fee will be added to your balance for each extension. Loan fees average about $18 for each $100 borrowed. Payday loans are somewhat controversial because they carry higher finance charges than most other forms of credit.


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