Everything You Wanted to Know About Payday Advance Loan and Were Afraid To Ask

To qualify for a payday advance loan approval, meet these minimum requirements:

Be at least 18 years old.
Have an open checking account active for at least 90 days.
Be currently employed.
Show direct deposits of at least $1,000 per month into the account.
Provide a current phone number.

The lender verifies your employment status directly with your employer.

How Payday Advances Work

Step 1: Submit Application
Apply online, over the phone, or in person.
Step 2: Processing and Approval
The lender processes your supplied information and approves the loan.
Step 3: Get Notified
You are informed of the approval.
Step 4: Receive Funds
The loan is deposited electronically into your checking account overnight if approved before the cutoff on a business day.
Step 5: Automatic Repayment
On the due date, the lender deducts the principal plus agreed-upon interest from your account.

Funding timeline: Approvals Monday-Thursday yield funds next business day; Friday approvals on Monday; weekends on Tuesday.

What Happens If You Can't Repay on Time?

Payday advance companies offer extension programs to help with payments. During an extension (up to three times), pay only the finance charges and fees due. After the third extension, an additional payment is required: $50 for loans under $500, or $100 for larger amounts. You then pay the principal, finance charges, and the additional fee.

If repayment goes beyond 27 days, customers may need to pay double the regular amount.

Lenders typically do not check credit history. Some use the TeleTrack database to ensure no outstanding unpaid payday advances. In most cases, no faxing is needed. Online applications capture all required info, saving time and eliminating document transport hassles. Phone applications are available with assistance from trained customer service reps.