Applicants of payday cash loans are usually individuals that are experiencing a time of financial setback.  Unexpected financial obligations are usually the source of these setbacks, such as unplanned medical bills, or travel, family issues, or minor problems, like a house repair.

2. Where can I find a payday cash loan?

Payday cash loans are available at the traditional store-front and online.  You can find the stores by looking them up in your local phone book or the yellow pages available on the Internet.  Most stores specializing in check cashing also offer the service of payday loans.  In addition, you can find payday cash loans available through the Internet.  Many lenders are available through your fingertips on your computer in the privacy of your home.

3. What are the qualifications for payday loans?

The standards for being approved for these fast payday loans are usually the same throughout various lenders.  An applicant must be at least 18 years of age and able to provide proof of employment and income.  Lenders look for a minimum of three months of consecutive employment and an income of no less than $800 a month take home pay.  Other information expected at time of application: personal details, including proof of residency in the country you are applying in, proof of a current bank account, and personal references.

4. What if I need help filling out my application?

In store lenders and online lenders both offer assistance for the application process.  No fax payday loan lenders offer assistance on the phone and through email.  Because the online process is completed strictly on the internet, 24 hour help is usually available.

5. How long do I have to pay back my payday cash loan?

These loans are usually given with the understanding that they will be repaid with the borrower’s next paycheck.  Lenders do offer the option to roll the loan over until the following pay period.  However, you will be required to pay out the current loan and the interest charged.  The lender will usually then allows you to remake the loan until the next payday – with the same amount of interest you just paid.

7. What are the interest charges for my payday advance?

Because the amounts of payday loans are usually small amounts, the interest and fees paid on the amount is generally $25 to $30 per $100 borrowed. However, if the loans are not paid back on time, the lender will usually not allow you to borrow again, or renew the existing payday loan.  If the borrower expects to extend the life of the loan, he/she must pay out the current loan and its interest, and then roll the loan over, with the interest that will be charged again at the same rate.  If the interest charges are looked at as an Annual Percentage Rate (APR), the percentage can be baffling to a borrower.  It must be understood by the borrower that these particular types of loans are given only for short time periods and are not a means to get out of debt.

8. How much should I borrow from a payday cash loan lender?

The amount that a lender will allow you to borrow is based on your income.  While you are awarded an amount of a loan, that entire amount does not need to be borrowed.  Keep in mind that these loans are to be repaid from your next paycheck, and, if the amount of the loan is too much, you may be left without a paycheck at all.  Borrow with the understanding that you will be paying this money back shortly.

9. How do I know if my lender is legitimate?

Most states require lenders to hold a license to distribute funds based on your paycheck.  Check into your state laws, and inquire with your lenders whether or not they hold the appropriate licensing.

10. I have bad credit?  Can I still qualify?

Yes.  Because payday cash loans are given with little background checks, as long as you hold a steady job and receive a steady income, you can still qualify for a payday cash loan.  Even applicants who have court judgments against them have been able to be approved for a payday loan.  The amount of the loan awarded is based upon your income, and not your credit.

11. Can I use payday cash loans to escape from my debts?
 No.  A payday loan can be used to come up with a small amount of money in a small amount of time.  However, they are not meant to be long term loans because the APR interest rates cumulatively will skyrocket.  Use your loan appropriately, and do not resort to continuously taking payday advances, because repayment of one means that you may not have enough money to make it again until your next paycheck.