| Payday loans, sometimes called paycheck | | | | checking account each payday, your bank may |
| advances or cash advances, are small, short-term | | | | offer to give you a small payday cash advance. |
| loans. (Don't confuse this "cash advance" with the | | | | When you get your next paycheck deposited, the |
| term used when you borrow money against a | | | | bank will withdraw the amount you borrowed plus |
| prearranged line of credit. They are far from the | | | | the agreed upon fee for the service, which falls |
| same thing.) These payday loans do not require a | | | | somewhere between 10-20% normally. |
| credit check and are typically for amounts smaller | | | | A twist on payday loans may be available through |
| than $1500. This kind of loan is normally to help | | | | your tax preparation service. Many of the |
| the borrower "get by" until their next paycheck | | | | services have begun offering refund anticipation |
| when money is tight. | | | | loans to those they prepare taxes for. They'll loan |
| How you go about getting payday loans is simple. | | | | you a fixed amount and then it will come out of |
| The simplest way to receive payday loans is to | | | | your tax return later, plus their fee. |
| give the lender a post-dated check, which will | | | | There are also many lenders online willing to offer |
| include the money borrowed plus interest. The | | | | you payday loans. It requires you fill out an online |
| borrower will get cash in return and the lender | | | | form, give quite a bit of personal information and |
| agrees to hold the check until the borrower's next | | | | then you will either be approved or declined. Most |
| payday. On the date indicated on the check, the | | | | are approved and you will quickly have money in |
| lender can process it normally or electronically | | | | hand through wire transfer or other available |
| withdraw the money from the borrower's | | | | methods. |
| checking account. | | | | Be careful who you choose to receive payday |
| Today, you can find lenders that offer payday | | | | loans from. Shop around and look at many lenders |
| loans everywhere. Most often, they work out of | | | | before choosing the one you wish to use. Some |
| small stores. However, even large banks and | | | | charge much higher rates for their services, which |
| financial service providers have begun offering | | | | will cost you money in the long run. Also, be |
| various forms of payday loans. | | | | prepared to pay back the payday loans |
| A new variation on payday loans may be available | | | | immediately after your next paycheck arrives. If |
| from your regular financial institution! Check with | | | | you fail to pay it back, hefty charges can be |
| your bank and see if they offer something like a | | | | added to your loan and you can end up paying |
| direct deposit advance! If you have your | | | | much more than you planned. |
| paychecks electronically deposited in your | | | | |