Nine Signs of a Predatory Payday Loan

1. Triple digit interest rate
Payday loans carry very low risk of loss, but lenders typically charge fees equal to 400% APR and higher.

2. Short minimum loan term
75% of payday customers are unable to repay their loan within two weeks and are forced to get a loan "rollover" at additional cost. In contrast, small consumer loans have longer terms (in NC, for example, the minimum term is six months.)

3. Single balloon payment
Unlike most consumer debt, payday loans do not allow for partial installment payments to be made during the loan term. A borrower must pay the entire loan back at the end of two weeks.

4. Loan flipping (extensions, rollovers or back to back transactions)
Payday lenders earn most of their profits by making multiple loans to cash-strapped borrowers. 90% of the payday industry's revenue growth comes from making more and larger loans to the same customers.

5. Simultaneous borrowing from multiple lenders
Trapped on the "debt treadmill", many consumers get a loan from one payday lender to repay another. The result: no additional cash, just more renewal fees.

6. No consideration of borrower's ability to repay
Payday lenders encourage consumers to borrow the maximum allowed, regardless of their credit history. If the borrower can't repay the loan, the lender collects multiple renewal fees.

7. Deferred check mechanism
Consumers who cannot make good on a deferred (post-dated) check covering a payday loan may be assessed multiple late fees and NSF check charges or fear criminal prosecution for writing a "bad check."

8. Mandatory arbitration clause
By eliminating a borrower's right to sue for abusive lending practices, these clauses work to the benefit of payday lenders over consumers.

9. No restrictions on out-of-state banks violating local state laws
Federal banking laws were not enacted to enable payday lenders to circumvent state laws.

Some Important Issues About Payday Loans

Payday loans are very controversial in the loan industry. Many consider pay day loans to be the black sheep of the financial products. However, these loans can solve many emergencies as they provide funds fast without credit verifications. However there are some misunderstandings regarding the use and characteristics of these loans and therefore, some clarification is needed to avoid misuse.

Payday Loans Are Unsecured Personal Loans

Payday loans and cash advance loans are personal loans that carry no security. Don’t be surprised when searching for unsecured personal loans if you come across many sites offering payday loans. Usually people arrive at these sites searching for unsecured personal loans with longer repayment programs with several installments to repay the loan. If you are searching for these loans, make sure to include that fact on the search field or you will be directed to payday loans too.

Payday Loans Carry Fixed Amounts

Though you can request the amount you need, there is always a range that you need to respect, usually payday loans offer a minimum of $100 and a maximum of $1500 or $2000 at most. This means that if you need higher amounts you should resort to other forms of financing. You can always request more than one payday loan (from different lenders) but the repayment of two payday loans at the same time can be a bit complicated and onerous.

Payday Loans Charge Fees Rather Than Interest Rates

To make things simple for applicants and probably to disguise the fact that the interest rates charged for these loans are too high, payday loan lenders promote their payday loans featuring a fixed fee every $100 or $1000. For instance, you can see on newspapers advertisements or on the internet offers stating to charge only $10 every $100 borrowed. This implies an annual percentage rate of 120% which is overwhelming. Yet, since these loans carry short repayment programs, they make sense for emergencies. An unsecured personal loan with a longer repayment program and that rate would be simply abusive.

Payday Loans Are For Emergencies

Given the characteristics of payday loans, these financial products need to be used only for emergencies. They serve this purpose very well because there are no credit checks and the money can be deposited into your account by the next day without hassles. These cash advance loans however, can´t be used as a regular source of financing because the interests or fees accumulate easily creating and building up debt uncontrollably.

Payday Loans Require No Credit Checks

There are no long credit verification processes on payday loans and therefore, your credit will not be an issue. This implies however, that the lender will assume the worst and thus, the charges will be high enough to compensate the risk that defaulters represent. Understand that you are not only paying for the risk you represent but also for the others’ as the others are paying for yours too. This may sound unfair but it’s the only way creditors cover for the risk they take.

Conditions For Qualifying For Payday Loans

In order to qualify for a payday loan there are basically two simple requirements: you need to show proof of income with copies of your paychecks or tax presentations and you need to have a bank account where the money will be deposited. If arranged, the amount owed plus the fee will also be debited from that account.

Payday Lending Basics

1. What is a payday loan?

Payday loans are small cash advances, usually of $500 or less. To get a loan, a borrower gives a payday lender a postdated personal check or an authorization for automatic withdrawal from the borrower’s bank account. In return, he receives cash, minus the lender's fees. For example, with a $300 payday loan, a consumer might pay $45 in fees and get $255 in cash.

The lender holds the check or electronic debit authorization for a week or two (usually until the borrower's next payday). At that time, the borrower has the option of (1) paying back the $300 in exchange for the original check, (2) letting the lender deposit the check for $300, or (3) renewing or rolling over the loan, if he is unable to repay it. Some lenders accomplish the same effect with "back-to-back transactions," having the borrower write a check for a new advance, and using these funds to repay the prior loan. In renewal and back-to-back transactions, the borrower gets no "new" money, but pays another $45 in fees.

2. Who uses payday loans?

The payday industry advertises these loans as quick and easy ways to get cash, and targets low-income working consumers, including welfare-to-work women, military personnel, and others who have little to no savings and live paycheck to paycheck. Most cash-strapped borrowers who get payday loans are not able to repay the whole loan within two weeks, and end up rolling over their loan and paying renewal fees multiple times. Trapped on this "debt treadmill", consumers typically pay much more in fees than the amount they originally borrowed.

Although payday loans are marketed as one-time assistance during a financial emergency, a 2003 study (PDF) by the Center for Responsible Lending found that 91% of all payday loans are made to borrowers with five or more payday loans per year. Borrowers, on average, receive 8 to 13 payday loans from a single payday lender per year. And, most payday borrowers go to more than one lender, dramatically increasing their total number of payday loans per year. Only one percent (1%) of all payday loans are made to one-time emergency borrowers.

Read stories about payday lending victims.

3. What is required to get a payday loan?

To get a payday loan, most consumers only need to show personal identification, have a personal checking account, and provide proof of income from employment or government benefits, such as Social Security or disability payments. Unlike conventional lenders, payday lenders do not look at a borrower's monthly expenses or her ability to repay the requested loan.

4. What are the costs of a payday loan?

For a two-week payday advance, a borrower will pay at least fifteen dollars for every $100 borrowed. But with such a short duration these loan fees are equal to roughly a 400% annual percentage rate (APR). And as the chart below shows, consumers who renew their loans often end up paying more in fees than they have borrowed!


For borrowers with five, ten, or even twenty repeat loans per year, payday lending functions as chronic debt, instead of helpful credit. These borrowers pay additional loan fees for no new money each time the loan is renewed. CRL estimates that predatory payday lending costs five million Americans $3.4 billion annually.

The societal costs are also great. Since the payday lender is holding a “live check” as collateral, borrowers struggle to renew their payday loans every two weeks while falling behind on other bills, like rent, mortgage, electricity, and even groceries. As borrowers slide deeper and deeper into trouble, payday lenders get paid while other merchants and lenders do not. Social service agencies and faith-based groups pick up the tab for families in trouble.

5. How big is the payday lending industry?

Payday lending has grown rapidly over the last several years. In 2000, the industry consisted of 7,000 to 10,000 payday loan offices, which accounted for 41 million transactions and $1.4 billion in fees. By the end of 2003, according to industry sources, there were approximately 22,000 payday offices generating $6 billion in fees from around 100 million transactions. Total sales volume grew from $10 billion in 2000 to $40 billion in 2003. In other words, the payday lending industry quadrupled in size within three years.

The growth in the payday industry has been fueled by very high profits—an estimated 34% pre-tax return. Payday lenders need only a small amount of cash to make loans. After the first loan, the borrowers is simply reborrowing the money they just repaid, minus the fee. Moreover, these lenders charge annual interest rates of 400% or more, which is much higher than the risk these loans carry. In comparison, the highest credit card rates rarely exceed 29% APR -- less than one-tenth the APR charged on a payday loan -- even though credit cards and payday loans have similar rates of default.

6. Who makes payday loans?

In the early 1990s, payday loans were made by small independent shops that primarily offered check-cashing services. Today, the industry is dominated by large regional or national "monoline" lenders that provide only payday loans, and multi-service lenders that offer an array of fringe banking services such as check cashing, money orders, and bill paying services.

Banks are also becoming more active in this industry, by providing capital to payday lenders and entering into partnerships to originate payday loans in states that prohibit stand-alone payday lending (called "rent-a-charter" deals.)

7. How are payday lenders regulated?

State laws generally govern whether payday lending is permitted in a state. Currently, some 36 states allow payday lending. However, several large payday lenders are using brokering arrangements or rent-a-charter agreements with commercial banks to circumvent state bans and limits. In these cases, payday lenders evade state laws by invoking federal preemption through the Federal Deposit Insurance Act.

This practice is now under attack by some federal regulators and state attorneys general. For example, in Georgia and in Maryland, legislation has been enacted to prevent this kind of arrangement.

No Teletrack Payday Loans

In the field of payday loans, the concept of teletrack is very common. In fact, most of the payday loans companies use this in managing the application procedures. Teletrack is actually a credit agency that gathers sub-prime consumer credit information. And, most of the loans like payday loans are generally recorded by Teletrack.

As you may know, most of the payday loan lenders out there don’t really run some form of credit checks. So getting a fax free no credit check loan even with bad credit is not difficult in many situations. But it is common for payday lenders online to verify your employment and then run the Teletrack report on you. But currently, there are growing numbers of fast online pay day loan lenders that offer no fax, no credit check and no Teletrack cash advance payday loans, which usually have simple on line application and quick approval. Here are a couple of companies that offer such loans. Their current terms, conditions and ownership is subject to change, so please investigate the terms directly with the company and also check out a few other companies to find the best rate for you. Payday personal emergency loans are often around $15 per $100 dollars borrowed, but sometimes you can find them for more or less, even occasionally $10 per $ 100 dollars borrowed.

No Teletrack Payday loans at Check Advance.com

Check Advance.com is but a great site for no teletrack payday loans that it certainly did not perform teletrack report on your payday loan application; instead they just allow you to enter the necessary information in the no teletrack payday loans applications, confirm the information, and verify it. As such, there is no doubt then you will receive the cash on your checking account as fast as possible without the hassles of credit check and faxing. It is somehow necessary for you to remember that once your application is approved, your no teletrack payday loans amount will be directly deposited into your checking account and once the pay back date comes, the fund will be automatically deducted from your account. It just seems like a give and take process.

No Teletrack Payday Loans

Just like Cash Advance.com, Borrow Source.com also offers no teletrack payday loans for those who need cash fast. This company basically allows you to apply for no teletrack payday loans and obtain cash fast, just when you need it the most without the hassles of having to yield to paper trails, no credit check, and nothing necessary to fax. It is perhaps with this reason that many customers have considered Borrow Source.com as an ultimate place for no teletrack payday loans. In addition, it is important to know that just like the above mentioned site, Borrow Source.com requires you to fill out an application online indicating your personal information, and the company will do the rest for you.

Payday Loan Glossary

Amortize

Amortizing is to repay the loan, in small but regular installments, that occur monthly or quarterly, over the term of repayment.

APR (Annual Percentage Rate)

The APR or annual interest rate combines interest rate and other charges involved in a loan.

Bad credit

Bad credit, which is also known as poor credit and adverse credit results when the borrower has bankruptcy or repossession in his credit file.

Balance

The balance is the amount remaining to be paid on a loan.

Bankruptcy

Bankruptcy results when the borrower is completely unable to repay debts. The courts intervene to erase the debts by liquidating all the assets of debtor. Since bankruptcy is available on the website of the debtor for about 6 years, it becomes especially difficult for the borrower to get credit.

Cash advance loan

Through a cash advance loan, borrowers can get an amount up to $1500 to fill the gap between paydays.

Credit History

Credit history is a record of the debts that have been taken and the status of their repayment.
DefaultA default takes place when the debtor is not able to repay debts according to the specified agreement.

Monthly payment

Monthly payment is computed by dividing the sum of the principal and interest on the loan by the total number of payments.

Principal

The actual amount borrowed against the loan is called the principal.

Rollover

Rollover of a payday loan means extending or renewing loan by agreeing with the lender to pay loan at a renewed term of repayment. This is done by paying the interest on loan and agreeing to pay the balance of loan plus new interest later. Payday loans can be rollover for a maximum of six months.

Payday Loan Companies

At one point or another everyone of has encountered this situation, not having enough money to make it to our next payday. A common solution to this problem that seems to becoming more popular is a payday loan. While a payday loan may be fast and convenient, it may not be the best solution.

A payday loan company offers to loan you money based upon repaying it and a service fee on your next payday. This often seems like a perfect solution until you look closer.

There is a simple reason as to why we are seeing more payday loan companies opening up and advertising so much. Payday loans are very profitable for those doing the lending due to the high interest rates and often end up being almost addictive for those borrowing the money. A recent national survey of payday loan companies found that only 37% of companies accurately reflected their interest rate. At most places the interest rates varied from 390% to 851% annually with the average being 474%.

Once you get into a payday loan agreement it is often hard to get out of it due to the amount that must be repaid at once. In fact 77% of people who borrow money from a payday loan company can not afford to repay it in full so they roll the loan. When your loan is rolled a portion of the total amount owed is paid and the remaining amount of the old balance, including the old service fees, plus the new service fees and interest rates are added on to a new loan. Obviously it is very difficult to pay down the loan when so much more is being added on to what is owed.

If you can not afford to repay any of your loan then you may receive an even bigger surprise than the interest rates. It is common practice for you to sign a wage agreement that allows the payday loan company to garnish as much of your pay as they wish without having to go to court. Another option available to most companies is charging you with fraud. In many areas it is fraud to write a check if you do not have the money in your account to cover the check and you may receive court order fines or even some jail time.

If you find yourself in a situation where you need to borrow from a payday loan company then perhaps it is time to pause and reflect upon how you got to this point. Sometimes situations arise that you have no power over but more often it is a fault of bad financial planning. Now would be a good time to review your monthly budget and try to see what went wrong and what you can do to prevent the problem from occurring again.

Depending upon your situation, there may be better options for you than a payday loan. For example, if you have a little time to wait, you may be able to use funds in your 401K plan. Funds withdrawn from your 401K you are only taxed at 10% and if you make arrangements with your payroll department to repay the withdrawal from your 401K then it is not taxable at all.

Before getting a payday loan make sure you have examined all of your options. Do you really need this loan? Is there a mistake on your credit report preventing you from getting a normal loan or credit card? Can you change your monthly budget to avoid the financial problem you are experiencing? Payday loans may seem like a convenient option but a steep price comes with that convenience.

About the Author
Jakob Jelling is the founder of http://www.cashbazar.com. Visit his website for the latest on personal finance, debt elimination, budgeting, credit cards and real estate.

Keeping Your Payday Loans Secure

A person who obtains a payday loan for the first time need not have butterflies in his stomach. Getting a payday loan is relatively simple and fast, especially if a person submits an application online. Completing an online application takes between two to six minutes, depending on how fast a person reads and types... Online payday loan companies require loan applicants to complete an online application form. Based on the information disclosed in the application form, the lender will determine whether the applicant is qualified for a payday loan or not. Most lenders collect information about potential clients from four sources:

1. The information provided by the application on the online form, such as years or months of employment and the monthly wage.

2. The data regarding the client’s transactions with the lender such as the amounts previously loaned and payments made.

3. The record of the client’s transactions with other companies or lenders, such as whether the client has applied for other payday loans or not.

4. The report from a consumer agency, but this report is not about the client’s credit history.

Some people, however, are dubious about the privacy and confidentiality of submitting their information online. This is because there are unscrupulous hackers who steal information for their own selfish purposes.

To prevent any violation of privacy, online lenders have installed comprehensive and tight security measures. Such measures are meant to keep the confidentiality and integrity of the information provided by an applicant. One of these security measures is called the 128-bit SSL encryption technology. SSL stands for Secure Socket Layer. The SSL ensures that any data transmitted from one computer to another cannot be viewed publicly by anyone.

Another security measure is, of course, the client’s username and password. With such, no other person will have access to the client’s personal account. This means that no one else can use and exploit the personal account. But with this security measure, the client must also do his part. That is, he must not divulge such information to anyone or make a public computer remember his username and password.

For the part of the lenders, they usually do not pass on information about you to other entities or people, except when the law requires them to do so. This is when lenders report their financial status to authorized government agencies. The lenders will certainly not show that Mr. X borrowed more money than Mr. Y.

Lenders also install electronic safeguards to prevent other online companies from obtaining the client’s contact information, and to hinder such companies from sending you proposals and advertisements about their products and services.

And lastly, when a person no longer utilizes the loan services of the lender, the information about this former customer will remain confidential, unless again, when the lender is required by law to disclose such information.

A person who wants to take a payday loan for the first time need not worry about his credit history because the payday loan lender will no longer conduct any credit investigation. This means that if the applicant has issued bouncing checks or declared bankruptcy in the past, he will still be eligible for a payday loan. The few requirements are these:

1. Must be 18 years old and above
2. Must have a current job or receive a regular income
3. Must have a minimum wage of $1,000
4. Must maintain a checking account

Once a person meets the requirements listed above, the next he will need to find out is the amount that he is qualified to borrow. Such amount will depend on his income. This implies that a person usually cannot borrow more than his income. This is the lender’s way of ensuring that the borrower is able to pay the loan.

Once the loan application is approved, a representative of the lending company will contact the borrower either by phone or by email. The representative or customer service personnel will confirm several loan details and will answer any other questions that the borrower may have. The borrower is now considered a client. And this usually happens within a day.

A few lenders will require the client to submit via fax or email attachment some documents (such as driver’s license) so that the client may show proof of his employment. But most lenders have other more convenient ways. That is, they do not ask the client to fax anything.

The client usually receives the amount he loaned during the next business day. That is, if the application was submitted Wednesday, the client’s bank account usually gets a deposit overnight or early Thursday. If the application was submitted on Friday, the deposit is received on Monday.

The payment for the loan is often deducted from the client’s bank account on the day of his payday. This payment will consist of the loan and of the interest. The amount charged for the interest will vary from one lender to another. As a first time borrower, one of the best courses to take is to research which lender will offer the least interest and the best deal.

For more information or more questions, the first time borrower may contact the lender’s toll-free customer service hotlines.

About Auther: Peter Garant's faxless payday loan sites http://www.faxless-paydayloan.org and http://www.sameday-payday-loan.com/ concentrates on how to easily obtain short term loans and cash advances.

Advantages and Disadvantages of Payday Loans

A payday loan is generally a cash advance loan which is taken to meet immediate requirements until you get your next check on payday. They are easy to get. You will be required to show only a few documents and information like your full name, address, social security number, and a personal check. The main purpose of this type of loan is to meet an immediate financial requirement. You can apply online, by telephone, or in person.

Payday loans offer many advantages to the borrowers. You can get it regardless of a negative credit report. Generally, credit reports are not checked. Processing the application form and loan approval takes only a few minutes. Once, you meet the terms and conditions, money will be transferred into your account within 24 hours. It will enable you to bridge a gap until the next payday. There is no upfront cost to this loan. Your transaction and financial information will be secret. No matter how much care and caution you take, accidents do happen in life. In a tough time such as this, where there is not any other source for help, payday loans may save you.

There are lots of disadvantages, also. The interest rate is considerably high as it helps borrowers with immediate, short-term needs. You may easily turn into a debtor if you take out this type of loan over and over again. The best thing to do is to learn as much as you can about saving money and try to avoid this loan if at all possible. Try to meet your needs from any other source. Take it only as a last refuge. Please make sure that you take only that amount you will be able to pay off in next pay period.

Payday Loans Explained

Payday loans are designed for fast cash, in many circumstances they can be obtained overnight. They are often used for times when cash is short and bills need to be paid, or in emergencies.

The number of payday loan applicants is getting larger with each passing day.

As you can learn from the name "payday", it refers to a loan that is being provided for very short period of time. Commonly, the gap period of payday loans is 1-2 weeks. We can define it in the following ways.

"A cash advance loan made generally until one's next payday."

OR

"A payday loan is a small, short-term loan, without a credit check, that is intended to bridge the borrower's cash flow gap between pay days."

Pay loan is also known as check loan, payroll advance, or cash advance.

This loan is made especially for the middle class family. Every middle class family can face monetary problems at the end of the month. There are many bills which are pending. Due to various reasons like tight budget or unbalanced income-expenditure ratio, these situations can arise out of blue, and people can find themselves short on the amounts needed to pay their bills. Therefore, to get out of this unwanted situation, they need a loan that can take care of these small, pending bills or some other emergency expense.

Nowadays, this loan is sponsored by many lenders or financial institutions. This procedure can be formalized completely over the Internet.

To be approved for this loan, you need to fulfill certain criteria that will be a decisive factor in deciding if you receive the loan. First, any lender will confirm your source of income. A stable monthly income must be integrated with a checking account at a the bank. The age and nationality are very important parts. You must be 18 years old as well as a valid citizen of the country to apply for this loan. Income usually has to be at least $1000 per month.

The loan approval time is quite short. Be careful about the working days of the bank. All the verifications and documentations are done with an automated system known as VPN based software. It takes at least 24 hours. $5 to $30 USD is normally charged per $100 in fees as well as using the APR method may increase the interest rate up to 391%.

First time applicants can only apply for a $500 loan, but next time, they may get more.

If you are receiving a payday loan for the first time, you may get up to $500. After you repay your first loan amount, on time, you can normally request more than $500 when you revisit the company for another payday loan.

Be careful about the danger points of payday loans like the APR system, privacy of personal information, and other policies of the lender.

The repayment will be done by your bank ACH transfer, so be prepared for the timely payments.

California Payday Loans Lenders

San Francisco Cash Advance Payday Loan Companies

• Money Mart
  1099 Market Street
  415-861-2751


• Royal Loan
  839 Larkin
  415-346-5090

San Diego Cash Advance Payday Loan Companies

• AAA Payday Loan
  9491 Black Mountain


• Full Spectrum Lending
  402 West Broadway
  619-595-4871

Los Angeles Cash Advance Payday Loan Companies

• Payday Loan Company
  1287 North Lake Ave
  626-398-2000


• Payday Loan of LA
  6861 La Tijera Blvd
  310-649-2100

Walnut Creek California Cash Advance Payday Loan Companies

• Coastal Lending
  1981 North Broadway
  925-930-6161

Payday Loans & Your Credit Rating

If you have a credit card, then you have a credit rating. A credit rating can be good or bad. It exists so that lenders can rate your reputation as a borrower and establish you as a worthy customer or a risk customer. Credit ratings are often recorded in a letter grade fashion such as A, B or C. Each of these ratings indicates the borrower's status and informs others through various criteria, whether or not the borrower is bankrupt. Credit ratings keep track of the borrower's payment history. Sometimes if an individual's credit rating is bad, they will have problems when applying for loans and other money-related privileges. For this reason, and many others, money management is key when using credit cards, or taking out a loan.

Sometimes, even if you have a bad credit rating, you can still apply for a short-term loan, such as the payday loan. This is because the payday loan lenders will not check your credit rating. A payday loan is meant to assist those who need fast money in between their paychecks. The payday loan ranges, on average, anywhere from $100-$1500. Once your application is accepted, you will receive the payday loan in your checking account usually within 24 hours. Repayment for the payday loan is expected on your following paycheck; generally up to 30 days after the loan has been received. It is important that you pay off this loan promptly, and not let it sit there. Like any loan, the longer it takes for you to pay it off, the higher the interest will continue to grow.

If you do not have a credit rating, you may find that because you don't need one to obtain a payday loan, that this is very convenient way for you to borrow money. However, by not having a credit rating, you are cut off from various other privileges. Without a credit rating, for example, you may have difficulty being accepted for bigger and more important loans from your bank, such as a mortgage loan. If you manage your money well, and you wish to gain good credit, apply for a credit card, instead of choosing a payday loan. You would be surprised to learn that the interest rates differ between the various credit cards that you can apply for, and that these rate are often much cheaper than a payday loan.

There is no questing that cash advance payday loans are a convenient way to borrow money, especially because it can be done in as quickly as 2 minutes online, in the comfort of your own home. You will want to make sure that you do not excessively apply for one payday loan, just like a credit card, if you apply too many times the lenders will become suspicious and are more prone to objecting your request. You will also want to always be truthful in your application. Do not embellish on your answers, because if the lender discovers that you are lying, your application will be automatically rejected. With this in mind, before you choose to apply for a payday loan, you will want to make sure that the site you choose has high security and is professional. They should have an email address where you can reach those who run the site, and they should be able to answer all of your questions clearly and professionally. Find out their license agreements, as by law they are required to have one, and make sure that the state you live in allows the license of short-term payday loans.

You have the power to create for yourself a good credit rating, and it all starts with your ability to properly manage your money. Re-think your decision to apply for a payday loan, and discover if there are other options that will better suit your future interests. There are many great opportunities available for you; you just have to find them.

Cash Advance Payday Loan FAQs

What is a Cash Advance, Payday Loan, or Paycheck Loan?
A payday advance provides you with an unsecured, short-term cash advance until your payday. Customers choose payday advances to cover small, unexpected expenses while avoiding costly bounced-check fees and late payment penalties. With Personal Cash Advance you can apply for a payday loan online and have your advance electronically deposited to your checking or savings account.

How do I qualify?
Qualifying for a payday advance is easier than qualifying for traditional credit. Personal Cash Advance does not perform credit checks. Your job and your paycheck act as your collateral. You only need to meet the following requirements:

• Currently have a job (or receive regular income)
• Make at least $1000 per month
• Are 18 years of age or older and a U.S. citizen
• Have checking account or savings account with direct deposit

Does the process take long?
Customers typically receive approval within hours of applying. Since the money is wired directly into your checking or savings account, you can usually have access to your funds the very next day.

What if I have bad credit, NSF's, charge-offs or a bankruptcy?
Not a problem! Personal Cash Advance does not obtain a credit bureau report to qualify you for a cash advance payday loan.

What about collateral to receive a loan?
No. Your job and your paycheck are your collateral.

Do I need direct deposit?
At this time we can only process your loan if your paycheck is direct deposited; it is the most secure way to offer loans as quickly as we do.

Is there an application fee?
Personal Cash Advance never charges applicants a fee to qualify for a payday cash advance loan.

Is my application and financial information secure?
Absolutely. We respect our customer's privacy needs in managing their personal finances. Our site uses a variety of security measures to maintain the safety of your personal information. All sensitive information transmitted between your browser and our website uses 128 bit Secure Socket Layer (SSL) encryption technology.

How often should I use this service?
Whenever an immediate or urgent need arises, Personal Cash Advance is here to help. It is important to remember that a payday cash advance loan is a short-term answer to an immediate cash need. Payday loans are not intended for repeated use in supporting an on-going budget situation from payday to payday. Repeated use or reliance on payday loans can create serious financial difficulties. If you need help with credit, budgeting or debt management, please contact the National Foundation for Credit Counseling at 1-800-388-2227.

How is the payday cash advance loan amount determined?
State law regulates and limits the maximum advance amount to between $100 and $1500. Within that range, you qualify for a payday advance amount based on your current income

How are fees established?
Our fees are competitive and in compliance with all applicable state and federal laws. Why is there so much information in the Loan Agreement? The Agreement is a contract that complies with all applicable state or federal disclosure requirements. It completely outlines the terms of the payday advance, including the cost of the service fee both as a dollar amount and as an annual percentage rate (APR).

How soon do I have to pay back the loan?
Payday cash advance loans are generally repaid back when you receive your next paycheck. The standard time for loan repayment is usually no less than seven days and no longer than eighteen days. Of course you may also pay back your loan at anytime without any prepayment penalties.

What if I can't repay the payday loan in full on my due date?
We have different payment options available for our customers:
1. Paying the loan in full on the maturity date listed on your loan agreement*.
2. Paying the finance fee and a portion of the principle on or before the maturity date*.
3. Paying only the finance fee on the maturity date*.

*Some additional terms and conditions may apply. Please ask your loan consultant about all of the repayment options.