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Payday Loans FAQ

All About Payday Loans

? What is a payday loan?

! A payday loan is a short-term, high-interest, unsecured loan that is traditionally connected to the borrower’s salary or pay. The loan amount is usually repaid on the next payday. The lender can agree to the amount being repaid over a few weeks for an extra fee. The loan amount can be from $50 – $1,000, depending on the borrower’s income and the loan fee is from $5 to $30 per $100 borrowed.

? How is a payday loan different from a regular loan?

! Payday loans work much the same way as regular personal loans. There are three main differences.
  • Firstly, they are typically for small amounts of money up to $1,000.
  • Secondly, borrowers usually only have a few weeks to pay them off.
  • Thirdly, they carry much higher interest rates.

? Why not apply for a personal loan instead of a payday loan?

! Even though personal loans may provide more time and money along with a lower interest rate, the approval process may be time-consuming. Borrowers also should have a fair credit history to qualify for personal loans. Payday loans are fast and easy to qualify for, even with bad credit. They may thus be a better choice in an emergency.

? Is a payday loan the same thing as a cash advance?

! Yes. These two words are synonymous and may be used interchangeably to describe the same type of loan.

Payday Loan Safety and Responsibility

? I have heard that payday loans are risky. Why is that?

! Payday loans are not inherently risky, but many customers tend to use them incorrectly. They may take out payday loans for inappropriate purposes without the ability to pay them back. This results in high interest and fees being charged and may lead to a vicious cycle of taking out loans to pay back other loans. A payday loan is safe if it is used in a responsible manner.

? When is it safe and responsible to use a payday loan?

! Use a payday loan only in an emergency. Make sure you have the money to pay it back when it comes due. Do the math. If the numbers add up, it may be a good time to use a payday loan. If they do not, you may wish to consider another option.

? How can I be sure a payday loan is right for me?

! No one else can decide for you whether a payday loan is the best option for your situation. If you do know that you can pay back the loan on time and it will help you with an emergency now, you should not feel nervous about using one. Use your best judgment.

? What if I cannot repay the loan in full on time?

! If a borrower cannot pay back the loan on time in full, additional charges and interest may apply. These potential charges will always be disclosed before a loan offer is accepted. Contact your lender to negotiate a new repayment schedule.

Applying for a Payday Loan with PayDayAllDay

? How do I apply for a payday loan online?

! On our website, borrowers can fill out a quick form with basic information. We then send that information out to our network of lenders, who get back with loan offers for customers who qualify. This process is fast and easy. Most customers who are approved get their fund the same or the next business day!

? Can I get my cash the same day?

! In some cases, same-day cash loans are available. The earlier an application is submitted in the day, the more likely it is you will qualify for same-day disbursement of funds. Some lenders provide same day funding option for an extra fee.

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