Cash Loans 101
Cash Loans are meant to keep you financially afloat between pay periods and therefore are meant to be paid back as early as your next paycheck. That is one of the reasons states can cap the maximum amount to be borrowed at as low as $500 or as a percentage of your monthly income.
Cash Loans are also called: payday loans, cash advance loans, deferred deposit check loans, and check advance loans.
How They Work
When you take out a payday loan, you generally fill out an application online requesting funds. Since there is no credit check, the approval process can be completed in about 90 seconds and funds can be deposited in your account in an hour or less.
By requesting funds, you are agreeing to pay the fees and interest as set out in the agreement. You will provide the lender with a check routing number so that the funds can be automatically deducted from your account on the agreed upon due date.
When the due date arrives you have a couple of options:
- allow the company to withdraw the money for the loan as agreed
- go to the company and pay off the loan (if they have a physical store)
- extend or rollover the loan as allowed by state law (if extensions and rollovers are allowed, there are often limits to the number of times they can be extended; check your state law.)
Know Your Consumer Rights
Alternatives to Cash Loans
