How Payday Loans Work

Despite what you may have heard, the process of applying for and receiving a payday loan or cash advance is really quite simple. To clear up any confusion on the process, the general steps are outlined below. However, it is important to note that every payday loan lender handles the cash advance application process differently, so the steps given below can and may change.

  1. Choose a payday loan lender. This is arguably the most important and time-consuming portion of the payday loan process. There are numerous cash advance lenders available online. It is important that you review the terms and conditions for each lender so that you may choose one whom you feel the most comfortable.
  2. Complete the application. Filling out an online loan form usually takes no more than a few minutes during which you will be asked for various personal information, how much you would like to borrow, and when your next payday is. Once the form is submitted, some lenders require that you fax them a blank check, your most recent bank statement, and your latest pay stub.
  3. Receive the money. Once you are approved, which can take anywhere from a few minutes to a day, the loan funds are usually wired directly into your account making them available for immediate use.
  4. Repay the loan. On the day agreed upon during the application process, you will be required to repay the loan. This can be accomplished in a variety of ways depending on the options provided by your lender. If you would like to obtain another payday loan or would like to extent your current cash advance (often referred to as "rolling over" the loan), you will need to contact your payday loan lender for instructions on doing this.

That's it! If you are approved for your payday loan, then your cash should soon be available and in your account.