How Payday Loans Work

A payday loan is a short-term cash loan, usually up to two weeks. For example, you need to borrow $300 to pay the full amount of your rent that is due. The payday loan fee is added in so you write a personal check for $300 plus the service cost and give it to the payday lender to hold. The lender gives you the $300 dollars you need to pay rent. In two weeks the lender will cash the check and the loan and interest is re-paid in full.

Online payday loans are simpler and much faster. Instead of going to the store you fill out the online application completely on the Internet. The $300 is deposited in your bank account within hours and in two weeks the lender debits the money you borrowed plus the service fee.

Don’t Want To Pay All The Money Back At Once? There Are Options.

You have options for how to pay the loan back. You can just pay the Service charge, You can pay back the money you borrowed, or just a portion of it and you can even roll over the entire amount to your next pay period. Keep in mind that if you don’t pay the full amount off by your next pay period additional services charges usually added.

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