| A payday loan allows consumers to borrow up to | | | | Payday loan lenders charge fees just like any financing |
| $1000, depending on their state's laws and the | | | | company. Fees include a process fee and interest. To |
| consumer's monthly income. Payday loans are | | | | make comparison shopping easy, the federal |
| intended to be short-term loans, helping get through a | | | | government requires lenders to post an APR, which |
| financial emergency until your next payday. Online | | | | includes both fees and interest. This is the rate you |
| payday loan companies add convenience to the | | | | would pay if you kept the loan out for an entire year. |
| process. | | | | If you compare the APR of a payday loan to a |
| Payday Loan Process | | | | mortgage, you will see a huge difference. However, |
| Once you have found a payday loan company, you | | | | payday loans are only intended to be used for a |
| will need to fill out an application that includes your | | | | couple of days, so your actually fees will be lower. The |
| contact information and monthly income. You will also | | | | APR is still a good way to compare payday |
| need to work out a repayment plan. If you use a | | | | companies to find the best deal. |
| traditional payday loan store, you will need to write a | | | | Online Payday Loan Lenders |
| postdated check that the lender holds onto. Online | | | | Online payday loan lenders follow all the same rules as |
| payday loan companies will deduct the payment from | | | | traditional lenders, but they allow you to apply at any |
| your checking account automatically. | | | | time for a cash advance. They also transfer your |
| When your application has been submitted and | | | | cash electronically, so you don't have to hassle with |
| approved, you will receive your cash advance. A | | | | checks and trips to the bank. |
| traditional lender will issue you a check, while online | | | | Some online lenders also offer better deals, especially |
| companies wire the funds to your checking account. | | | | for first time borrowers. They may waive fees or |
| Your repayment will be due on your next payday, or | | | | offer reduced rates. It pays to check out several |
| you can extend the loan for longer by paying additional | | | | different websites to find the lowest fees for your |
| fees. | | | | cash advance. |
| Payday Fees | | | | |