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What is a Payday Loan? Payday loans are short-term, consumer loans ranging between 100-1000
dollars, usually borrowed when a person is caught between paychecks.
These are also known as check advance loans, post-dated check loans,
cash advance loans, deferred deposit check loans or deferred presentments,
but they all work in the same manner. The date due to repay the money
ranges normally from 5-18 days, depending on the client’s next
upcoming payday, and interest rates can be considerably high. Sometimes
this is withdrawn from the initial amount of the paycheck as a flat
fee, independent of how many days until the next payday rolls around,
and some lenders choose to vary the rate of interest depending on the
length of time until the borrowed money is repaid. |
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