What is a Payday Loan and how does it work?

Payday advances, also called “payday loans”, “cash advances”, “instant cash loans”, “payroll advances” or “paycheck loans” are short-term loans that can be taken against a future paycheck. Once approved, your loan proceeds will be deposited directly into your personal bank account. When your loan payment is due, the finance charge will be automatically debited from your checking account unless other payment arrangements have been made.

To apply for a payday loan or cash advance, you usually fill out an online form that asks for your contact information, employment status and bank account info for a deposit. Some lenders require a pay stub or extra documentation be sent or faxed in, but most lenders nowadays process everything online.