Understanding Payday Loans & Check Advances

greenCheckLiving from paycheck to paycheck has become an unfortunate reality for many households. Medical emergencies, automobile repairs and other unexpected bills can be completely devastating to a home that is already barely making ends meet. With lenders now requiring impeccable credit standards, many borrowers are looking into payday loans or check advances for a quick fix. While this can be a good solution, no financial decision should be made without contemplation and research.

A payday loan, or a check advance, is a short-term unsecured loan, generally for an amount equal to the borrower’s next paycheck. Payday loan brokers and check advance websites have proliferated in recent years and significantly streamlined the process. A website can record a borrower’s bank details and, after income verification, wire the borrowed amount directly into the borrower’s bank account in as little as an hour. Most payday loan companies do not require a credit check of any kind. After a specified period of time, sometimes as long as 60 or 90 days, the amount and any interest fees are automatically deducted from the borrower’s account.

Payday loans are beneficial to cover minor, temporary shortfalls in finances. While a payday loan may charge interest fees, those fees may actually be less than any late fees, penalty charges, or overdraft fees that might accrue without it, to say nothing of the ramifications of getting sent to collections. In addition, a payday loan may often be the only choice for a borrower with poor credit or no assets to borrow against.

Going through a payday loan broker rather than directly to a payday loan company can be in the borrower’s best interest, as the broker will search for the best rates and the best terms. Interest rates can be the determining factor on whether or not a payday loan is the most ideal choice to make. A borrower should not take out a loan if it leaves them in a worse financial situation than before.

There are physical payday loan locations that a borrower can visit as an alternative to online companies. At these locations, the borrower will generally walk out with the funds, and leave behind a postdated check for the total amount due. The payday loan company will deposit this check on the specified date, and the transaction will be complete. The downside to using a physical payday loan location is that due to overhead and a captive audience, the interest fees are generally higher than what is available through an online company.

A payday loan is a valuable tool when used properly, but it does not apply to all situations. If paying back the payday loan will lead to the same shortfall of funds that it was originally necessary for then it becomes a delay tactic rather than a solution. Payday loans and check advances are an excellent way to cover unforeseen events in the most responsible manner possible, but they cannot resolve a financial situation that is inherently unstable. The best way for a borrower to manage their financial situation is to be aware of their options, use the tools at hand, and educate themselves on proper budgeting and planning.



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  • Kaci Collins says:

    Hello, I am seeking a payday loan. I got engaged on Christmas and we had the money for a honeymoon. However my father became ill and was in the hosptial in Oklahoma which is a five hour drive from where I live. And I had to go all the way there to see him. And that cost money. And when my brother who is a 12year army Vet lost his youngest daughter. I put some more of my money for my wedding into a benefit for him. Which didn’t bring in half of what I put into it. So now i”m asking for a loan to help me and my new husband go on a short honeymoon. Not a week long just a few days to get away and relax. after four months of constant stress. And taking care of a terminally ill mother in law. I am ready for a break. I can pay back in flexable payements. I start working at Stage stores as soon as Monday May 5th. And he works as well. So paying one back will not be an issue. Thank you for helping me understand how these loans work, this is exactly what I was looking for. Kaci.

  • angel delfi says:

    just need a payday advance

  • Caldion says:

    Looking for a installment loan are payday loan using Netspend Aceelite card with direct deposit of funds going to it from ssi ssdi

Payday Consumer Notice:


The APR of a payday loan varies in each state and depends on the lender, the advance amount, fees and terms of the transaction. The APR in our network of lenders can range from 265.36% to more than 700% on 14 day terms.

Implications of non-payment

Implications of non-payment vary from lender to lender and by state regulations. If you are unable to repay your loan you may have one or all of the consequences listed below depending upon the terms of your lender. Fees may include but are not limited to: insufficient fund fees, administrative fees, late fees, non-payment fees, court costs and legal fees.

Collection Practices, Credit Score Impact

Payday Loans are due and payable in full in one payment at the end of the loan term, unless the Lender offers renewals or other repayment options. Make sure to review the terms and conditions of your lender if you fail to pay on time.

  • Late payments of loans may result in additional fees or collection activities, or both. Each Lender has their own terms and conditions, please review their policies for further information.
  • Non-payment of credit could result in collection activities and your account could be turned over to a collection agency. Each Lender has their own terms and conditions, please review their policies for further information.
  • Failure to pay your loan on time could result in your lender reporting the delinquency to a credit reporting agency. This could result in the lowering of your credit score which could make borrowing more expensive in the future.

Renewal Policy

Renewal policies vary not only by lender but also by state regulations. Every Lender has their own renewal policy, which may differ from Lender to Lender. Renewal fees vary by lender. Please review your state regulations and you lender's renewal policy, terms and conditions.