Frequently Asked Questions

What is a Payday loan or a cash advance?
A Payday loan or a cash advance payday loan is a short-term cash loan which is small and is typically given to a borrower by a bank in order to cover their expenses before their payday. It is typically used to cover sudden or unexpected expenses for short periods of time.

What is the amount of money given in such loans?
Payday loans are usually small, between $100 and $1500, although there are differences in amounts based on the borrower’s ability to repay and the legislation of different U.S. states. In some states, payday loans are illegal while they are heavily regulated in other states.

The base amount for most loans of this type is $100, while some lenders may change the loan amount based on the borrowers repayment ability and bank regulations.

Why are payday loans given out to borrowers?
The primary purpose of a payday cash advance is to help borrowers with unforeseen expenses before they receive their paycheck. This is useful to students or families to cover a range of expenses such as medical bills, utility bills, travel expenses, etc.

What is the duration and repayment period of the loan?
Since advance loans are intended for short-term use, the repayment period of these loans is about 30 days. Some loans come with a grace period of about 10 days for repayment.

Are payday loans illegal in any of the states of the U.S.?
Some states of the United States have declared payday loans as illegal. Currently, payday loans are legal in all states except Arizona, Arkansas, Colorado, Connecticut, Georgia, Maine, Maryland, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Vermont and West Virginia. Massachusetts allows banks to offer these loan products under heavy regulation.

Can a person borrow a quick cash loans if they have an existing advance loan?
Yes, a single borrower may borrow a quick cash or cash advance even if they are already paying off another payday advance loan. While most lenders allow this, some states and banks regulate the number of advance loans a person can hold.

How does one qualify for a payday loan?
Banks and lenders have detailed guidelines for loan qualification which are governed by Federal and state guidelines. Broadly, in order to qualify for these loan products, a borrower must be:

• 18 years of age or older
• A citizen or resident of the United States
• Repayment ability or income of at least $1000 per months
• A valid bank checking or saving account.
• Valid physical and email addresses as well as a phone.

How can I apply for a payday loan?
You can apply for a payday loan by filling up an application form at the lender or the bank. Some online payday lenders allow you to register and submit all documentation online, thereby making the approval process much quicker.

If approved online, based on the details provided on your loan application, the lender may even transfer the loan amount into your account in a few hours.

Can I get a loan if I have bad credit or financial difficulties?
Since payday loans are designed to be for emergency or urgent expenses, many lenders offer them to borrowers with poor credit scores. However the rate of interest you may pay on these loans may be higher in the event of bad credit.

What fees do I pay at the time of taking the loan?
Lenders charge different fees at the time of loan application and through the duration of the loan. Loan applications contain details of the fees charged. Typical fees on a payday loan are the late payment fee, a bad check fee, pre-payment fees and application fees. Each of these fees may change the total payment amount of the loan for the borrower.

How quickly is a payday loan approved?
fast cash loans are typically approved in 1 to 3 business days. The speed of loan approval depends on the availability of all relevant documentation with the borrower. Some banks may even allow the application and receipt of loan funds through an online transfer directly into the borrower’s bank account. These fast loans may be even approved and funded in a few hours’ time.

How do I repay a fast loan or payday loan?
Fast loans or payday loans need to be paid back to the bank or lender after the duration of the loan expires. This period is typically 30 days and the money if taken from your bank account or credit card provided at the time of application. If a loan carries a pre-payment penalty, attempting to pay a loan off before the expiry of the loan levies a penalty on the borrower. These penalties are explained by the loan broker and are present on the application form.

What if I am unable to repay a payday loan?
If you are unable to repay your loan, your lender may give you an extension of time to repay the loan. In addition, a lender may offer assistance in repayment by reducing the amount that needs to be paid back. Typically a loan may be renewed and extended up to 6 times. If payment is still not received, the loan may become a long term debt.

What if I missed payment in error?
Everyone makes mistakes, so if you have missed your payment, speak with you lender and make arrangements to have the payment made as soon as is possible to avoid high interest charges. Most lenders have the ability to waive late fees in the event of an honest miss in payment.