5 Responses to “Q&A: How do payday loans work?”

1. Lil' E. says:

   November 3, 2011 at 6:52 pm

   simple – proof of wages,

   proof of 1- 3 bills with current address,

   based on how often u r paid and make determines how much u can borrow.

   ur given a date it must be paid back or u can give a date within that time frame,

   u give a posted dated check that has the amount borrowed and the interest u will be charged.

   u can pay back in cash or let them deposit the check

   if u pay cash, u get yo check back

   amt borrowed and rates are posted, u signed a contract then get the money.

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2. Ray S says:

   November 3, 2011 at 7:40 pm

   what ever you do don’t use them, right now most states are running them out of town, google ohio and payday lenders, try a credit union or worst yet try cash call

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3. wartz says:

   November 3, 2011 at 8:32 pm

   They are high cost very short term (normally only two weeks) loans with interest rates in the upper triple digits. Your credit is not checked but if you have defaulted before you might not qualify. Because they are small loans, they are expensive to service or the market place would have brought the rates down. You would do well to stay away from this source of credit.

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4. La Vie Boheme says:

   November 3, 2011 at 8:56 pm

   Don’t do it. You will get trapped in a loop and lose money. Avoid them at all costs

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5. MH says:

   November 3, 2011 at 9:09 pm

   Usually payday loan lenders don’t check credit. If the lender you choose follows a state-to-state model, then the interest rate depends on which state you live in. They are usually paid back on your next payday, unless of course you are paid weekly. (then they usually give you another week)
   I found that the lowest rates for a payday loan was from www.Spotya.com

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