CASH 101: What Is a Payday Loan?

August 26th, 2020 Affected by COVID-19? We’ve pulled together a few resources to help during this unprecedented situation. Learn more about how to handle COVID-19 here. Does your next paycheck feel a bit too far away? Wish there were an easy way to financially bridge the gap? We’ve got you covered with a Payday Loan (also known as a Cash Advance).  

What is a Payday Loan?

In a nutshell, a Payday Loan is a short-term loan typically used for emergency expenses. It can provide from a few hundred dollars up to $1,000, depending on your area. Then, simply repay the loan, plus fees, on your next pay date.   Are you still asking yourself, “What is a Payday Loan and why would I need one?” We’ve got answers. Here are a few common questions and qualifications for you.

What You Need to Get a Payday Loan

Getting a Payday Loan is quick and easy. Each state is different, so you may need some or all of the items listed below:

• An Active Bank Account
• Your Government-Issued Photo ID
• Proof of Income
• Most Recent Bank Statement
• Checking Account + Bank Routing Number
• Social Security Number or ITIN

 

Why Do We Need Your Personal Information?

When you apply for a Payday Loan, loan professionals — known as underwriters — collect a variety of information to determine how much cash you’re eligible to receive through your Payday Loan. Like with any other financial transaction, every bit of information gathered helps the underwriters have a clear picture of your eligibility. This helps underwriters determine the best Payday Loan amount for your situation.  

Additional Information Might Be Needed

Payday Loan laws vary from state to state. So, some states require more documents than others. Because of this, you may have to submit additional information to get approved for your loan. For example, in states like Illinois, where Payday Loans are heavily regulated, we may require additional documents in order to fund your loan.  

Why Would I Choose to Take a Payday Loan?

Payday Loans can be a lifesaver for certain situations. Here are 6 reasons why you may choose to use a Payday Loan:  

1. My Credit Isn’t Perfect

Don’t sweat it. Since Payday Loans offer smaller amounts, they’re still an excellent option for those who have less-than-perfect credit. As a result, bad credit isn’t necessarily an obstacle to receiving a Payday Loan.  

2. I Need Cash Fast

If you visit one of our Check Into Cash locations, you can walk away with cash in-hand if you’re approved. How’s that for quick cash?  

3. I Don’t Have a Strong Relationship with Banks

Some folks prefer not to deal with big banks. And that’s okay. We’re here to help with your financial needs. And we’ll treat you like family, too.  

4. I Need Flexible Repayment Options

Instead of having your loan drag on for months or years, a Payday Loan is normally paid in full within two weeks to one month, depending on your next pay date.  

5. I Want to Avoid Using Credit Cards

Credit cards can spiral out of control very quickly. If you prefer not to use credit cards in a financial emergency, look no further than Check Into Cash.  

Typical Payday Loan Terms

Regardless of how much you borrow with a Payday Loan, the loan terms are relatively similar. As you can tell from the name of the loan, the due date is typically on your next pay date, which is usually within two to four weeks. When you agree to your loan, you should understand the exact fee you will pay to borrow your funds, which includes interest. When your next payday comes, simply repay the loan and the agreed-upon fee. Because Payday Loans are created to be short-term fixes that are paid off within a month, the interest rate is typically not a factor. In fact, average fees are around $15-20 per $100 borrowed.  

Can You Be Denied for a Payday Loan?

When seeking a Payday Loan, it is possible to be denied. In general, one common reason for Payday Loan denial is an inability to repay the loan. This is done to protect you, the customer, as well as the lender. After all, there is no sense in piling on debt that you will not be able to repay. If you do not have a steady income, you cannot get a Payday Loan. If you find yourself in this situation, be careful not to pile up debt on credit cards. Instead, contact loved ones or local non-profit organizations to seek the financial assistance needed to make ends meet.  

How to Get a Payday Loan Fast

Ready to receive your Payday Loan? All you’ve got to do is go through the short, simple application process, and then relax. At Check Into Cash stores, once approved, you’ll have your cash in hand instantly if you apply in-store. Find your nearest store here. Prefer to apply online? If your state offers Online Payday Loans, your cash should reach your bank account by the next business day. Start your online application. So, if you need help making it to your next paycheck and are looking for loan options, come to Check Into Cash. We’ll work with you to help determine if a Payday Loan or other loan option can help you get back on your feet. Did you know Check Into Cash provides more than Payday Loans? That’s right, we also allow Check Cashing, Money Transfer, Bill Pay, and more. Discover all we have to offer by clicking below. More From The Blog Whether you want to apply for an online loan or prefer to visit your nearest store, it all starts with the click of a button. Click below to take the first step toward improving your financial situation.