| Payday loans, sometimes called paycheck advances | | | | payday, your bank may offer to give you a small |
| or cash advances, are small, short-term loans. (Don't | | | | payday cash advance. When you get your next |
| confuse this "cash advance" with the term used when | | | | paycheck deposited, the bank will withdraw the |
| you borrow money against a prearranged line of | | | | amount you borrowed plus the agreed upon fee for |
| credit. They are far from the same thing.) These | | | | the service, which falls somewhere between 10-20% |
| payday loans do not require a credit check and are | | | | normally. |
| typically for amounts smaller than $1500. This kind of | | | | A twist on payday loans may be available through |
| loan is normally to help the borrower "get by" until their | | | | your tax preparation service. Many of the services |
| next paycheck when money is tight. | | | | have begun offering refund anticipation loans to those |
| How you go about getting payday loans is simple. The | | | | they prepare taxes for. They'll loan you a fixed |
| simplest way to receive payday loans is to give the | | | | amount and then it will come out of your tax return |
| lender a post-dated check, which will include the | | | | later, plus their fee. |
| money borrowed plus interest. The borrower will get | | | | There are also many lenders online willing to offer you |
| cash in return and the lender agrees to hold the check | | | | payday loans. It requires you fill out an online form, give |
| until the borrower's next payday. On the date indicated | | | | quite a bit of personal information and then you will |
| on the check, the lender can process it normally or | | | | either be approved or declined. Most are approved |
| electronically withdraw the money from the borrower's | | | | and you will quickly have money in hand through wire |
| checking account. | | | | transfer or other available methods. |
| Today, you can find lenders that offer payday loans | | | | Be careful who you choose to receive payday loans |
| everywhere. Most often, they work out of small | | | | from. Shop around and look at many lenders before |
| stores. However, even large banks and financial | | | | choosing the one you wish to use. Some charge much |
| service providers have begun offering various forms | | | | higher rates for their services, which will cost you |
| of payday loans. | | | | money in the long run. Also, be prepared to pay back |
| A new variation on payday loans may be available | | | | the payday loans immediately after your next |
| from your regular financial institution! Check with your | | | | paycheck arrives. If you fail to pay it back, hefty |
| bank and see if they offer something like a direct | | | | charges can be added to your loan and you can end |
| deposit advance! If you have your paychecks | | | | up paying much more than you planned. |
| electronically deposited in your checking account each | | | | |