So What Exactly is a Payday Loan?


What is a payday loan and payday lender? Cashloancity.com is here to help explain so if this is your first time looking for a cash loan lender there's no need to worry.

How do payday loans work and where can I find information about them?

A payday loan is a short-term loan of a small dollar amount usually offered by businesses other than banks. It is called a payday loan because the amount of money lent to the borrower is supposed to be enough to help them get through to their next payday. Each state has its own laws surrounding payday loans, such as the amount of money companies can lend to their customers.

Available payday loan information varies by lender. All licensed payday lenders are required to make certain disclosures available to their customers. The information available may vary according to whether or not the payday loan is an online payday loan, or an in-store payday loan. Always consult the available information in your state to ensure you apply with a legally licensed lender. Any payday loan info that seems too good to be true probably is. Be careful and always choose a licensed, direct lender. Cash Loan City requires that an approved lender be a member of OLA "Online Lending Alliance".

How does the payday loan application process work?

You can apply for a payday loan, also called a cash advance, online or in a physical payday location. The application process to be approved for a payday loan is easier and faster if you apply for payday loan online because there is less paperwork and no faxing. For an online payday loan, you will need to provide personal information such as your Social Security number, banking information and your contact information.

  • When applying for a payday loan, the fees and interest should be clearly explained Too much fine print is usually a bad sign. Payday loans are not cheap, but the right payday loan will be upfront about costs.

How much does a payday loan cost and how do I know if the terms are correct?

Payday loan interest rates and the fees associated with them vary from state to state. Not all payday loans are created equally, so you must compare the interest rates, fees, terms, and conditions before applying. Once you find a low interest payday loan and you are approved, the money will usually be in your bank account the following business day. Make sure to stay on top of your spending to pay back your loan when it is due to avoid extra fees and unwanted consequences. Always refer back to the original pay day loan terms included in the contract you signed to take out the loan.

How do I choose a payday loan lender?

Not all payday lenders are created equally. To find a reputable payday lender online, look for the follwing criteria:

  1. Is the payday lender a Direct Payday Lender? Look at the bottom of their page. If it says that they are not a direct payday lender, they may sell your information to hundreds of other companies, which means you may get many unwanted e-mails and phone calls. This is perhaps the most important part aspect of how to choose a payday lender.

  2. Is your lender located in the United States? Again, check on the bottom of the website or in the contact information section to make sure you’re dealing with a lender located in the United States. If the site lacks real contact information, don't apply.

  3. Is your payday lender’s website secure? Secure websites have a little picture of a green lock next to the website address. If you don’t see it, your application information isn't safe. You could receive calls and emails from third party marketers trying to sell you their version of a payday loan.

Now that you know what a payday loan is, how a payday loan works, how to choose a payday loan, we encourage you to borrow responsibly and thank you from cashloancity.com

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