When it comes to payday loans this is when someone gets a small amount of money usually up to 1000 dollars lent to them at an extremely high interest rate at a physical brick-and-mortar lending location. The individuals who are receiving the loan usually has to have a bank account and have been on a job for at least 6 months. The individual receiving the payday loan also has to present proof of income which is usually by presenting two weeks worth of check stubs. The individual receiving the loan also has to present proof that they have an open active bank account. Once all the loan requirements are meet the lending institution then gives the individual the loan. They individual is then expected to pay the loan back on their next paycheck. 

Payday advances are also now available online. The good thing about doing the process online is that the individual does not have to go to a physical location to be approved but instead they just fill out the online application. After filling out the online application if the individual is approved the money is deposited into his or her checking account within 72 hours. Each state governs and has their own laws when it comes to how payday advances work. Some states have a limit on how much a person can borrow and other states do not. Some states have a limit on how much interest and fees that a lender can charge and some states do not. Then you have some states who do not allow payday advances at all. When a person gets approved for a payday advance they may receive the money in the form of cash, a check, and if the transaction happened online direct deposit. The loan plus the fees are usually paid back within 14 days. In most cases the lender does allow the individual to pay the loan back slowly over 4 to 6 months.

What Are The Fees For A Payday Advances 

When it comes to fees for getting a payday advance they may differ in each state and they are also set by each state. The payday advance fees usually range between 10 and 30 dollars for each hundred dollars that an individual borrowers. If you have to put this number into an average interest rate it would be around 15 percent. If you had to break this number down into a daily interest amount it would be around $1.07 per day. If the payday advance repayment terms are spread across the course of a year you would just multiply the $1.07 times the number of days in a full year to get the yearly interest amount. One important thing that the borrower should always know is that by law before you accept the terms of a payday advance the lender must disclose the APR.