Pay Day Loan FAQs

What is a pay day loan?

A pay day loan is also referred to as a cash advance. Pay day loans tend to be borrowed when an individual has to pay an expense in which they are unable to do so within the allotted time. These types of loans commonly range from $100 - $500, and just like any other loan; they also have an interest rate attached. Some of the elements that determine the amount of interest attached include the amount of the loan as well as the amount of the expected paycheck.

How long does a borrower have to pay back a pay day loan?

Pay day loans are repaid when the borrower receives their paycheck. The standard of time allotted for repayment may vary based upon the lender. Commonly, the pay day loan repayment must be taken care of within seven to eighteen days after the borrower has received his or her paycheck.

How does a pay day loan benefit the borrower?

A pay day loan is usually taken out prior to retrieval of the borrower’s next paycheck. This is primarily done to aid borrowers in paying off small expenses. Overall, pay day loans give borrowers the ability to avoid potential penalties. Some of these penalties include bank fees and late payment fees. Pay day loans have been created to help borrowers avoid these potential consequences.