Payday Advance

Payday Advance: Small, Short-Term Loan for Unexpected Expenses

A type of loan covering unexpected expenses until next paycheck with high interest rates and fees.

What is Payday Advance?

Payday Advance is a type of small, short-term loan, also known as a payday loan, cash advance, or check advance loan. It is a high-cost loan that must be repaid quickly, usually when the borrower receives their next paycheck.

These loans are designed to provide funds to cover small, unexpected expenses until the next payday. Typical payday loans range from $100 to $1,000, depending on state legal maximums. The loans have very high interest rates, often 400% APR or higher.

To qualify for a payday loan, borrowers only need to have an open bank account, steady income from a job or other sources like social security, and valid identification. No credit check is typically required.

The fee to borrow the money is usually a percentage of the face value of the check or a fee charged per amount borrowed. The loans have very short terms, often only two to four weeks. This will typically align with the borrower's next pay date.

Because the fees and interest rates are exceptionally high compared to conventional loans and credit cards, borrowers often have difficulty repaying the loan when it comes due. This can lead to repeatedly rolling over or refinancing the loan, which adds significant additional cost that makes these loans even more expensive over time.

Payday Advance Features

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