Payday Loans

Do you need money as soon as possible and don't want to go through all the usual bureaucracy ? You may then consider a payday loan. Before you go on with it, you may consider certain facts. You may consider also other alternatives for money, as a advance or help from family, as payday loans can trap you in a vicious circle.

First of, what is a payday loan ?

A payday loan is a short-term and high rates loan, usually between $15 and $500.

Who can obtain one ?

Almost everyone, even those with bad credit. If you're in this situation, check out our article " credit cards for bad credit ". Usually, but it depends on the lander, you will need your contact, banking and employment information. They may ask you some family information too, in the case you cannot be reached when the term of the loan ends (two weeks for the most cases).

Are there fees ?

Yes and it depends on how much you ask. 15$ for $100 asked is usual, as is $55 for $500. After two weeks (the common term for the loan), the lender cashes the check or you rollover it (see example below).

How does it work ?

1. You write a check to the lender of the amount you want to borrow + a fee.
2. The lender gives you the money (cash usually or straight to your bank account).
3. On the due date if you can pay, the lender cashes the check. 

If you want to expend your due time, you don't have to repay it, but the fees will accumulate.

For example : You borrow $100. The lender add a $15 fee. You cannot pay on your due time, so you rollover once (you get usually two more weeks to repay). When you can pay, you will pay $130 (100 + 15 + 15).

If you are interested in doing it, read our pieces of advice in this article.

Image : © Jason Comely, CC BY 2.0., re-sized.