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Payday Loan Approvals
Fast, Easy, Faxless: But, Pay Attention
Do Cash-for-Christmas lenders award payday loans or cash advances in Colorado, Delaware, Georgia, Kansas, Nebraska or New York?
No. The State governments in these states have laws prohibiting payday loans and cash advances--or, these states are generally hostile to payday lending.
How quickly can my payday loan be approved?
Fast. It used to take days, now it takes just hours. The industry standard is to deposit money the midnight after the day you're approved. So, if you apply before close of business on Monday, Tuesday, Wednesday, or Thursday, your money will be there just after midnight. Few payday loan or cash advance companies deposit money in accounts early Friday, Saturday, or Sunday morning--or on the morning of a holiday.
What are the fees I'll pay for my payday loan or cash advance?
This depends on who approves you for a payday loan or cash advance. It is an industry standard to charge a fee of $10, $15, or $20 per payday for each $100 you borrow. This means that if the fee is $20 per $100 and you get a loan for $300 you will owe $60 each payday until the loan is repaid in full. Lenders charging above $25 or $30 per $100 borrowed, while rare, are out there. Be sure you read each lender's Cost of Credit page.
What is the cost of my payday loan or cash advance if I pay it back right away?
If you take a $300 payday loan today and the fee is $20 per $100 you borrow, you will owe the $300 payday loan plus $60 in fees the first time the loan is due. If you repay the loan immediately (usually three days before your very next paycheck) you will only owe $360 total.
What if my payday loan isn't paid back right away?
That's never a problem--payday loan companies make their money from fees and the longer you wait to pay back the loan the more they make. For example, assuming your payday loan is $300, with $20 owed in fees per $100 borrowed, you will owe $360 on the first payday after you are paid. If you only pay the fees ($60) you will have another pay period to pay back the loan ($300) and the new fees (another $60). Therefore, if you wait two pay periods to pay back the loan the loan ($300), you will have paid $120 to borrow $300. What if you skip five paychecks--assuming you get a paycheck every two weeks--before paying back the loan? It works like this: $60 fees (week 2) + $60 fees (week 4) + $60 fees (week 6) + $60 fees (week 8) + $60 fees (week 10) + the original loan ($300). That's 5 payments of $60 ($300) plus the original payday loan amount ($300). Gets expensive quick, doesn't it? Pay back your loan as soon as you can so you only get hit with the minimum fees.
Are your loans "Fax" or "No Fax" payday loans?
Most payday loan and cash advance lenders provide "Fax" payday loans--even if they say "no faxing." The good news is that the amount of information required to be faxed today is significantly less than it was a year ago. Of note, a few lenders do provide "no fax" payday loans--but they need access to your bank account to prove you have gotten a regular paycheck for the past few months.
Do I have to pay back my payday loan?
We say "yes." However, each lender's handling of unpaid loans varies. Under certain rare circumstances (and on a painful case-by-case basis) many lenders will forgive a payday loan or cash advance. You just walk away. Excited? Don't be. Most payday loan and cash advance lenders will only forgive a loan after they've driven you crazy with collection phone calls, letters, and E-mails--or have contacted your bank directly--by the time they're ready to "forgive" your loan. Of course, we recommend you pay back your payday loan as soon as you can--if only to avoid the fees.
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Payday Loans and Payment Arrangements
Or, Your Payday Loan Details
Why do I need a payday loan or cash advance?
Great question. Usually, people applying for payday loans really need money quickly. This can be because they suddenly find themselves out of work, or the bills were more than anticipated, or their credit history is so poor they can't get a loan by other means. We personally recommend you use a payday loan or cash advance as a "loan of last resort." Other forms of borrowing are signifantly cheaper. But, if you really do need the money quickly and for an emergency, please, by all means apply now.
How much money can I get?
This depends on a few factors. First, most companies require that you've been employed in a steady job for a least a couple of months. Second, most companies need to see that your monthly income is at least $700. Third, most companies will want to speak with you by telephone (whether or not they claim they won't contact you by phone) to make sure you have a telephone number where you can be reached. Bear in mind that the "industry standard" payday loan is between $300 to $400. That's it. Few lenders will actually lend more than this at one time. Many people want up to $1,000 and end up getting payday loans from three or more payday loan companies at one time.
Can I apply for a payday loan at more than one company?
Absolutely. Apply to as many places as you want. Many people do--then, they wait and see which companies contact them first or are the easiest to work with. We recommend if you must apply to more than one company that you start with payday loan or cash advance companies that charge low fees ($15 or less per pay per $100 you borrow). Just be sure you can afford the fees if you're going to actually take more than one payday loan. The fees add up very, very quickly. (See our sample Cost of Credit page.)
Can I use the money from a second (or third) payday loan to pay off my first (or second) payday loan?
Of course you can. You can also stand on a tall building's roof, wrap one end of a long strand of silver tinsel around your neck, tie (tightly) the other end around the chimney, and jump. If the fall doesn't get you you're guaranteed to be strangled. So, yes, you can use one payday loan to pay off another payday loan--but it's a bad idea. We're only mentioning it here because people do get second, third, and fourth (even fifth) payday loans to pay on other payday loans. If you're even thinking about it, put the tinsel down and walk away from the edge, please.
How long do I have to pay back my loan?
Think of a payday loan as emergency money. You should pay it back the instant you can. A standard industry practice for payday loans is to lend the money to borrowers for no more than twelve weeks. This is quite expensive for you if you go the entire twelve weeks because of the fees due on your pay dates (six or twelve paychecks). People do wait the full twelve weeks. But, by then, the payday loan has cost them at least the loan amount in fees--so, you should pay back the payday loan the instant you can.
Can I increase my loan amount?
Many payday loan lenders will let you increase the amount of your loan after you have successfully paid off your payday loan several times. Each lender has different rules about this--we recommend you investigate each lender's policy by looking at the lender's Web site or speaking with the lender's customer service department.
How do I file a complaint?
If you find that you are having an issue with a payday loan company, please see our complaints page--or use the complaints page provided by the payday loan company itself. According to some State laws, payday loan companies must provide you with a clear way to file a formal complaint.
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