Payday Loan FAQ

Want to find out more about payday loans online before you get started? Get all the details about our payday loans, including a basic definition, what you need to qualify, the application process, and more right here in our Payday Loan FAQs. At Check `n Go, we know the more you’re informed about payday loans, payday loan fees, and the payday loan process, the better your choices will be, now and in the future.

Can’t find the answer you’re looking for? Simply call 1-800-561-CASH to speak with an associate, or contact us online.

What is a payday loan?

A payday loan is a safe and convenient short-term loan, created to allow borrowers to stretch their monthly budgets when the unexpected happens. Payday loans are unsecured, usually for small amounts of cash, and typically require only a few easy steps for fast results. Most payday lenders provide their payday loan services online or in a neighborhood brick-and-mortar store. In either case, a payday advance loan can be a simple, responsible solution for a temporary budget shortfall.

The payday loan application process, whether online or in-store, is typically uncomplicated. The requirements to qualify, when compared to other types of loans, are relatively basic: proof of income, approved proof of identity, and an active checking account. Qualifications for a payday loan are similar for online and in-store transactions.

Payday lenders provide payday loans quickly to qualified borrowers, all for a clearly stated, up front fee. Payday cash loan borrowers are never hit with hidden charges or interest rates; all rates and fees are clearly stated in the amount the borrower agrees to repay.

How can you determine if a payday advance loan is the right choice? First, clearly assess the financial situation. Payday loans are intended as an occasional, short-term solution and not as a source of ongoing help. If you need more help than a payday loan can provide, consider talking to a professional credit counselor.

If your cash flow problem is a short-term result of unexpected expenses, fill out an application with your chosen payday lender to find out how much you qualify to borrow, plus the fees. Only borrow the amount that you’re certain you can repay on time. If you’re able to budget the prompt repayment of your loan into your next pay period, you’re taking the responsible approach to payday loans.

When used responsibly and as intended, a payday loan works as a good alternative to late fees, credit card debt, and damaged credit scores. For short-term cash crunches, payday advance loans can be a smart solution.

Why do people choose payday loans?

People are choosing payday loans more often as emergency boosts to their otherwise stable household budgets. This is because they are a fast, safe and readily available source of help. When unexpected expenses or a surprise cash crunch leaves you in danger of falling behind on bills, you can rely on a payday loan. When used properly, payday loans are a great choice for a short-term need, and can help you avoid the cost of bounced checks, overdrafts, late payments and defaults.

Payday loans are popular for several reasons. Small lines of credit and short-term loans are becoming scarce at local banks. If they are offered, the approval process is lengthy and complex. If you’re in a bind, and you need money now, you don’t have time to spare. Payday advance loans are available at financial service centers around your community. Larger cities may have dozens of different lenders to choose from, and if you choose an online payday lender, you can apply from the comfort of your own home. It takes only minutes of your time.

Unlike banks, payday lenders are clear and direct about how much your transaction will cost. Most stores display their prices openly, so you can see them even before you get to the counter. These prices should also be easy to find on the payday loan provider’s website. For most payday loan companies, there’s no fine print and no hidden fees in your agreement. You know exactly what you’re going to owe before you even apply.

Anyone can apply and nearly anyone can be accepted. Payday loans are unsecured, which means that there’s no risk of losing your house or car. Past financial information is not required, so you can get help even if your credit is less than perfect. And, payback is a simple, automated withdrawal from your checking account. With so many benefits and no hassle, it’s not a surprise that so many people are choosing payday loans.

How does a payday loan work?

A payday loan works very simply. The payday loan application typically requires just a few simple steps, the fees are straight forward and stated upfront, and most borrowers experience fast approval time. For occasional cash shortfalls and unexpected expenses, a payday loan can be a good source for fast cash when you need it. Here are the basics:

  • After filling out a payday loan application and getting approved, the borrower signs a contract with the payday lender. Because of requirements by the Truth in Lending Act (TILA), payday loan contracts eliminate the possibility of any hidden fees or terms. Under TILA the contract will clearly state the terms of the agreement, including a repayment date, the full amount required for full repayment, and the APR that applies to the amount borrowed. As with any legal document, be sure to look over and understand the terms of any payday loan contract before signing.
  • After signing the payday loan contract, receipt of payday advance loan funds depends on whether the borrower applies online or in-store. If you apply for payday loans online and are approved, your funds will be directly deposited into an active checking account. Your payday loan will be available to you on the next business day.If you apply in-store and are approved, your payday loan funds will typically be available that day. You may need to provide your payday lender with a check, post-dated for when your repayment is due, for the full repayment amount plus the stated payday loan fee. The payday lender will then holds that check until an agreed upon repayment date, which typically falls around your next payday.
  • Payday loan repayment terms also depend on whether the borrower applies online or in-store. For online payday loans, you will repay with a pre-authorized electronic withdrawal from an active checking account for the amount borrowed plus the stated payday loan fee.For in-store payday loans, you can return to the store on the scheduled due date to repay the loan for the amount borrowed plus the stated payday loan fee. You can also simply let the lender deposit the check that had been post-dated at the time the loan originated.That’s all there is to it; a payday loan is just that simple. Keep in mind that payday loans only work well when used for occasional, short-term expenses. To find out more information about using payday loans the right way, take time to explore more of our payday loan FAQs.

How does a faxless payday loan work?

Applying for a payday loan or faxless payday loan with Check `n Go Online is convenient, easy and quick! Simply fill out our secure online application with the most up-to-date information you have about yourself, your current work situation or source of income, and your bank account. We will take care of the rest.

After you complete the application and submit it to us, a loan representative will attempt to contact you at the numbers you supplied on the application. Our loan processor will confirm the details and finish the rest of the application process. Rest assured that this will NOT slow down the loan approval process. In fact, it will speed it up!

If we are able to verify your current residence, employment situation and bank information, your loan application may qualify for our faxless approval process. In the event that we are unable to verify your application information, it may be necessary for you to fax in documents in order to complete the approval process.

The documents that may be requested are:

  • Most recent paystub
  • Most recent bank statement
  • Proof of last loan clearing your account

In some instances, you may also be asked to provide proof of your identity. Our customer service representatives will gladly answer any questions you have about the application process. Once you’re approved, your funds will be deposited directly into your checking account by the next business day.

How do I obtain a payday loan?

The process of applying for and then getting an online payday loan should be simple, secure and fast. If you’re considering a payday advance loan as a responsible way to get fast cash, take just a few minutes to prepare before you get started.

Know your need
Before applying make sure that your need is short-term, and that you’ll be able to repay your loan on time. If an unexpected extra expense has caused you to come up short this month, an online payday loan can help. Problems that come up month after month are concerns that a professional credit counselor should handle.

Know if you qualify
Have a steady source of income, a form of identification, an active address and phone number, and a valid check for an in-store loan. Online loans vary, depending on the provider that you choose, and most will have what you need listed on their website. Check `n Go has specific payday loan qualifications.

Choose a lender
Payday lenders differ in more than qualifications. We provide information on how to choose the right payday lender.

Choose a method
Which method is the most convenient for your lifestyle: A trip to a local financial service center or a fast, private online payday loan? The application process will vary only slightly between the two.

Fill out an application
This only takes a few minutes, whether you apply online or in-store. You’ll know promptly if you’re approved.

Sign the contract
After approval, you’re almost done. The contract between borrower and lender details all the rates, terms, fees and the repayment date.

Shortly after signing the contract, the funds are yours. Then, on the agreed upon date, repayment funds will be automatically withdrawn from your account or your post-dated check will be deposited. You can also choose to return the cash to the store to reclaim your personal check.

What are payday loans all about?

Payday loans are all about security and convenience. When you have an unexpected bill or expense that you need to pay quickly, waiting until your next payday may just not be a good option. Other short-term loans may be inaccessible, or the application process may just take too long. When you need to pay an expense now, a payday advance loan can be a simple, responsible, hassle-free answer.

In a stressful situation where time is everything, a payday loan might be a good solution. When considering a payday cash loan, convenience is one important factor to keep in mind. The application process is designed to be quick and easy, and most payday loans providers allow you to apply for payday loans online or in-store. Both ways of applying should be simple, fast and secure and are designed to get you back on track as soon as you’re approved. You’ll have the cash you need for your unexpected expense almost instantly.

When the time comes, repayment is done automatically. If you applied for your payday loan online, the payday lender simply withdraws the allotted amount from your account on the due date. If you applied in-store, you have the option of repaying with a post-dated check you provided at the time you received your loan, or you can return to the store to repay the amount borrowed in person.

A payday loan can be a quick and easy financial solution to an unexpected expense. With a convenient application process and hassle-free repayment plan, a payday loan can be a responsible choice for short-term cash flow difficulties. To learn more about how a payday advance loan works and when one is appropriate, read more from our Payday Loan FAQs topics.

What happens if I change my mind after taking out a payday loan advance?

A payday loan provider who follows the CFSA best practices will give all customers the right to rescind, or return, a payday loan within a clearly stated, limited time frame. The best way to avoid this situation, however, is to take a careful look at your financial situation before borrowing. If you’re unsure if you really need short-term financial help, or if you’re unsure if you’ll be able to repay the loan, it might be time to reconsider your options.

If you do decide to apply for a payday loan, make sure you choose a CFSA member. We provide information on how to best choose a payday loan lender. If you do decide to rescind your payday loan, a CFSA payday advance loan provider will allow you to do so at no cost. Typically, you only need to return the full amount of the cash loan to the payday loan provider before the end of the following business day.

How is the payday loan industry regulated?

The payday loan industry is regulated by state and federal law. Each payday loan provider has its own set of terms and conditions in addition to state and federal. It’s important to know the basics about a payday loan provider so that you know exactly what policies it upholds.

The payday loan industry supports balanced regulations that are in customers’ best interests. It strives for regulation to provide customers with privacy protection, to support customers’ right to alternative financial options and to give customers the freedom of choosing a payday loan provider that best suits their individual financial needs.

What determines payday loan interest rates?

Payday loan fees are regulated by state and federal law. Payday loan interest rates are expressed by using Annual Percentage Rate (APR).

Payday Loan Service Fees
The amount charged for a payday loan is the total amount borrowed, plus a service fee. This fee is a one-time, flat payment that varies only slightly depending upon how much is being borrowed. Payday loan service fees are regulated and dictated according to state laws where the borrower resides. Payday lenders who practice choice of law are exempt from this regulation. When a lender practices choice of law, the fees are regulated by the laws of the state in which the lender originates, and not by the state where the borrower resides. Reputable payday lenders typically avoid the practice of choice of law.

Payday Loan Interest Rates
United States federal law requires that the fees for any financial transaction be expressed to the customer in terms of annual percentage rate, or APR. The formula for APR assumes that that the loan will last a year or more. A payday loan is a two-week loan, so commonly seen APRs for payday advance loans are very high. This is because the APR is expressing the one-time loan fee in terms of an annual charge. Even though payday loans are not intended to be held for a year or longer, payday lenders express their fees in terms of APR to comply with federal law.

How are payday loan fees established?

Check `n Go’s payday loan fees are regulated and mandated by the state in which you reside.  The payday loan fees we charge are very competitive within the industry and in compliance with applicable state laws.  It is our goal to offer you the best service at the most competitive fee possible.  For a complete view of your fee-to-loan calculation, select your state the view the rates and terms that apply to you.

Is my payday loan transaction confidential?

The confidentiality of a payday loan transaction depends on the reputation of the payday lender. In the case of online payday lending, security is even more crucial and depends not only on the policies of the provider, but on the structure of the company’s website as well.

For the safest possible payday loan transaction, make sure of the following before borrowing:

Privacy Policy
Every payday lender should freely provide you with a privacy policy, whether you borrow in-store or online. This policy should be clear and concise and should outline all the circumstances in which your information is or is not shared with other companies. Online payday loan providers should make their privacy policies easy to locate and free to download.

Secure Site
Online payday loan lenders should encrypt their sites to ensure your security. Check in the bottom right corner of your Internet browser for the lock icon, which means that the site is encrypted and safe. You should also make sure your online transaction is secured through other reputable means as well, like with an Internet security and infrastructure specialist such as VeriSign. These additional security measures will be displayed on the site where you enter your sensitive information.

Direct Lenders
Dealing with a direct lender means your personal information goes directly to the payday loan provider and does not pass through an aggregator or a middleman. A direct lender is the safest possible provider for your payday loan transaction.

We provide a list of services to look for when choosing a payday loan provider.

What happens when I miss a payment on my payday loan?

If your payday loan payment is due and we’re unable to withdraw funds from your checking account, the payment will be sent to collections. A returned check fee may be charged in some states; however, Check `n Go will not collect any additional fees.

What is payday loan refinancing?

Payday loan refinancing allows you to apply for additional financing to extend the amount of time you have to repay your loan. When you refinance your payday loan, you must pay off your existing finance charges. Some states also require you to pay down a portion of the principal on your existing loan.

Keep in mind that payday loan refinancing is not available in every state.

How will I know when I’m eligible for refinancing?

If you’ve recently taken out an online payday loan from Check `n Go and you become eligible for refinancing, you’ll see a notification message upon logging into your “My Account” page.

How do I refinance my payday loan?

When you’re ready to refinance your payday loan, start by logging into your “My Account” page and clicking the button labeled “Refinance Now.” Note that this button is only visible when your loan is eligible for refinancing.

After clicking the “Refinance Now” button, you’ll be taken to a screen that allows you to customize the refinancing of your loan. You’ll be shown the refinancing options available to you, which may include standardstep up, or pay down.

With standard refinancing, you pay only the transaction fees due on your previous loan. However, because you are extending the loan principal another term, you will be responsible for additional fees.

If you qualify for more financing than you borrowed with your previous loan, you can choose to step up your refinancing amount. When you step up, you take out a second loan that’s larger than your prior loan. This money is automatically applied towards the principal and fees of your previous loan, and any additional cash goes directly to you. However, since your new loan is larger than your original loan, you will be responsible for a larger principal with accompanying fees on your next due date.

You can also choose to use your refinancing to pay down the principal of your previous loan. In fact, this is required in some states. When you choose the pay down option, you not only pay off your existing fees, but you also pay off part of your principal. Because the remaining balance on your principal is extended to another term, you will be responsible for any additional fees on that balance.

Once you choose which refinancing option to proceed with, you should select the amount of your refinance. As you select the amount of refinancing you would like, a refinance summary automatically updates to show you the amount of funding provided to you, the refinance principal, refinance fees, and the total refinanced amount. When everything is completed the way you want it, just click “Continue.”

On the next screen, you will be provided any funding documents that require your electronic signature. Upon signing and submitting these documents, you will be taken to a Thank You page that includes your loan number, the number of refinances you have remaining, and a refinance summary similar to the one described in the previous paragraph.

Where can I find the fees and due dates for my payday loan refinance?

The fees and due dates for your payday loan refinance can be found during the application process on any page with a refinance summary. The refinance summary will include the due date, principal amount, fee amount, and total amount due for your new loan. You can also find the next payment amount, next payment due date, and loan number for any of your existing loans on your My Account page.

How many times can I refinance my payday loan?

The number of times you can refinance your payday loan varies from state to state. In addition, when you apply for online payday loan refinancing through your My Account page, you will see messaging letting your know how many refinances you have left.

Why is there so much information in the payday loan customer agreement?

The payday loan customer agreement is a comprehensive document that fully outlines all terms, conditions and applicable laws of the payday loan transaction. This document is designed to provide the borrower with detailed descriptions of everything expected of both the payday loan provider and the borrower. This document also explains all state and federal laws that apply to the loan. Whether a payday loan transaction occurs online or in-store, it’s important that the borrower is provided with all the information required to make the best, most informed decision possible.

The payday loan customer agreement will contain the following:

State and Federal Disclosures
Depending on where the payday loan provider is located, state laws will vary. Some states have specific laws pertaining to the amount borrowed, and can range from a flat amount to a percentage. For example, through Check `n Go, Illinois payday loan borrowers can receive 25% of their gross monthly income or $1,000, whichever is less. Alabama customers can receive a maximum of $500. There are also laws in place that define the minimum and maximum borrowing period for a payday advance loan.

Regardless of the state of the payday loan provider, federal laws will apply everywhere and are outlined so the borrower can take them into consideration.

Rates and Terms
Every payday loan provider has its own applicable charges that will affect the transaction. These are outlined in the payday loan customer agreement, including service fees and fees that will apply should the repayment become past due. The service fee is the flat amount added to the loan amount. This fee will be expressed in a dollar amount, as well as Annual Percentage Rate (APR) in accordance with federal law.

I’m on Social Security or disability. Can I still get a payday loan?

In most cases, borrowers who receive Social Security or disability payments will qualify for a payday loan since many payday loan providers accept Social Security and disability payments as sources of reliable monthly income. However, be sure to confirm this with the provider you choose prior to beginning the application process.

Check `n Go accepts social security and disability payments as an income source for a fast payday loan. To apply online, you’ll simply need to report that this is your source of income. You may need to fax a copy of your award letter during the application process, depending on the regulations of your state of residence. You can find out if your state requires faxing by going to Check `n Go’s state center. To apply in-store, you’ll need to bring a copy of the award letter with you.

Do I need to fax any documents for an online payday loan?

If the payday loan provider you’ve chosen offers faxless online payday loans, and you live in a state that does not require faxing, then it is possible that you won’t be required to fax the provider any documents. If faxless payday loans online are available, it should be displayed on the provider’s website. Certain states require additional documents be faxed, regardless of whether or not the lender allows for no fax online payday loans.

While filling out the online application, the application should state whether or not you are eligible for a faxless payday advance loan. If so, then no additional information is required. Should you need to fax in documents, the most common ones include:

  • Most recent paystub
  • Most recent bank statement
  • Proof of last loan clearing your account
  • Proof of identity
  • Proof of SSN for IN , OK and MI residents only

If any of these documents are needed, it should be clearly requested in the application, followed by the correct fax number so that the lender can promptly receive your documents and complete the application process.

How long does it take to get approved for a payday loan?

Payday loan applications vary in approval time depending upon the lender and the method of application. In-store payday loans will sometimes have a faster turnaround time than online loans if the borrower is ready with all the required documentation.

In-Store Payday Loans
For an in-store payday loan, the borrower needs to present:

  • Proof of regular, verifiable income.
  • A working phone number.
  • An active checking account.

Income sources can be a full- or part-time job, Social Security or disability (with award letter), self-employment (1099 form), and in some cases alimony or child support. Each individual lender will have restrictions on what they will allow for proof of income, so be sure to check ahead. If all the documents are valid, the approval takes only a few moments, and then the cash is in your hand. It really can be as fast as a phone call to verify the phone number, and your payday loan is approved.

Online Payday Loans
The estimated time for online payday loan approval depends largely on whether or not the lender, in accordance with state law, allows for no fax payday loans. The requirements are the same as with an in-store payday loan. With all the correct documentation, a faxless online payday loan can be completed in just minutes — the combined time it takes for a representative to verify the customer’s phone number and for the borrower to respond to verification emails sent to his or her email address. If the lender does not allow for faxless payday loans, then the application cannot be approved until the borrower faxes in the required documents.

How do I sign my online loan documents?

Through the payday loans online application process, your documents can be signed through the application, generally by checking a box. Keep in mind that online payday loans should only be borrowed from a secure website and through a trustworthy lender. Checking the box on the application serves as an electronic signature and is legally binding. Links should be available to review the loan agreement, as well as to provide the lender’s privacy policy and any other terms or conditions that may apply. Always review these policies, terms and conditions prior to signing the application. If the lender does not readily provide this information, consider applying for a payday loan through another lender.

Online payday lenders with membership in the Community Financial Services Association of America (CFSA) will always provide easy access to these documents for review prior to signing the agreement. As a general rule, the CFSA seal should be a major factor in choosing a reputable payday lender. Learn more about how to choose a payday loan provider.

When will I receive my payday loan funds?

The payout time of a payday loan varies between different providers and the different methods of applying.

Online Payday Loans
Following loan approval—for customers who qualify for the faxless application process—contact information will be validated via phone and email. Then, the loan funding can occur the same day if you qualify for instant funding.* Otherwise, funds are directly deposited into your checking account as soon as the next business day.

Payday loans that require faxing will have a longer payout time. The approval process and state law will require one or more additional documents be sent in by fax to a number on the application. So, it’s up to the borrower to determine how fast they will be approved. Once the approval goes through, the funds are directly deposited and will be available the next business day.

In-Store Payday Loans
Payout for an approved in-store payday loan is instant. The approval process should be the only wait time. This includes the verification of all documents, including proof of income, I.D., phone number and active checking account. Then, after reading through and signing the payday loan agreement, the borrower will have the cash in hand before leaving the store.

When will my payday loan be due?

A payday loan gets its name from its typical due date. A payday loan is due on the borrower’s payday following the approval of the loan. In general, this means two weeks from the date the contract is signed. Larger loan periods are negotiable between the borrower and lender, up to a maximum period that is regulated by state law. A payday advance loan is meant to be a short-term loan, so the loan periods, as well as the loan amounts, are regulated to protect the borrower.

Because the loan period is so short, take the time to get all the facts about a payday loan before applying. Be sure that the full repayment, including the service fee, can be worked into your budget when repayment is due. Some payday lenders will contact you with a reminder that your repayment date is coming up soon. Nevertheless, make sure you record the repayment date so you remember to make your payment on time.

When used as intended, payday cash advance loans can be a responsible option for occasional, unexpected expenses. Make sure to consider your budget and the loan repayment terms carefully to ensure that your payday loan works for you.

How do I pay back the payday loan?

A payday loan can be paid back by either automatic withdrawal or in-store cash exchange. There may be additional repayment options open depending on the lender.

Automatic Withdrawal
For online payday loans, an automatic withdrawal is the only means of repayment. It is also the most common means for in-store payday loans. In-store payday loans are completed by exchanging a post-dated check for the amount of the loan, plus the lender’s service fee. On the agreed upon repayment date, the lender simply deposits the check, causing the funds to be taken automatically from the borrower’s account. Online payday loans require that an active checking account be submitted securely to complete the online application. The funds are then withdrawn on the date repayment is due.

The lender may or may not notify you of an upcoming repayment date, or when the check is being deposited. That’s why it’s so important to plan ahead, and to make sure that the funds are available in your account on that day. If the account is short, borrowers may be responsible for returned check fees from the bank, as well as late repayment fees and penalties from the payday loan provider. Make sure that you’ve planned properly and that your account is ready on the date the lender goes to withdraw the funds.

In-store Cash Exchange
Some payday lenders will allow an in-store payday loan customer to bring the cash they borrowed back to the store before the due date, in exchange for the return of their post-dated check. Make sure that your lender allows for this type of repayment before planning for it.

After I pay off my payday loan, can I get another payday loan?

An additional payday loan can be applied for immediately as long as all the requirements are still met and there are no outstanding payday loans from other lenders. The only exception would be if state laws demand a borrower wait a certain period before applying for another payday loan. Lenders that abide by the laws of the state will enforce this waiting period. Afterward, you are free to apply for another payday loan.

If you need to wait before taking out another loan, take the time to consider why this restriction is in place. A payday loan is meant to be an occasional, short-term financial solution. While the option is available to have two consecutive payday loans, it’s important to understand the purpose of payday loans and to use them responsibly. If you find yourself needing regular payday loans in order to make ends meet, it may be time to seek serious, long-term financial help. It’s up to you as the borrower to determine when your situation is in need of professional assistance. Check `n Go offers a cash management page to help along the way and additional financial resources that provide tips for smart budgeting.

When is a payday loan appropriate?

When it comes down to it, even the most financially responsible people face tough financial situations from time to time. Sometimes unexpected cash emergencies occur and require financial attention. When these situations arise, a payday loan may be the appropriate solution for you.

Payday loans are safe, short-term loans meant to cover small or unexpected costs until your next paycheck. They are a useful resource to consider when faced with overdue bills, important large purchases, or the possibility of bouncing a check and incurring overdraft fees, overdraft protection fees, returned check fees, etc., but they are NOT intended to be incorporated as part of a long-term debt management solution.

It could be said that a payday loan is similar to a spare tire:

A spare tire is a short-term solution that can get you from destination A to destination B until you are able to make it to the tire shop. However, spare tires are not designed to handle long-distance journeys. Similarly, the payday loan is a short-term solution meant to give you immediate cash-flow until your next paycheck, but it is not the economic solution for long-term debt management.

If you’re facing financial hardship, there are plenty of other solutions available that may be more appropriate for your goals. But if you’re searching for a short-term quick-cash solution, a payday loan may be exactly what you need.

The Top 10 Payday Loan Myths

Trying to find good information about the reality of the payday loan industry can be difficult. Many vocal opponents have accused our industry of bad practices, creating myths that simply don’t hold up after a close look at the facts.

Check `n Go, a leader in the payday loan industry, has worked to clear the air and shed some light on some false assumptions about the entire payday loan industry. Here are some common myths you may see about payday loans and the reality behind them:

1. Payday loans interest rates are inflated to gouge the borrower.

When critics claim that a payday loan charge is 300% annual percentage rate (APR) or more, that can sound pretty shocking out of context. However, it’s important to keep in mind how misleading that claim is when it comes to payday loans.

APR literally represents the interest charged over the course of a full year. This isn’t how a payday loan works. The course of a payday loan, from the time you receive your loan until it’s time to pay it back, is generally two weeks. The Federal Truth In Lending Act requires lending institutions to fully disclose the terms of a loan to a borrower. All fees and interest earned must be shown in terms of APR.

The average fee charged by a payday lender like Check `n Go is a flat $15 per every $100 borrowed. The charge on a short-term loan is commonly misunderstood when viewed solely in terms of APR. Attention to the APR, without any real explanation as to how it is being calculated, is often misleading to the consumer.

If other common fees were explained in terms of APR, most consumers would be shocked. Consider the following examples:

  • $100 payday advance with a $15 fee = 391% APR
  • $100 bounced check with $54 NSF/merchant fees = 1,409% APR
  • $100 credit card balance with a $37 late fee = 965% APR
  • $100 utility bill with $46 late/reconnect fees = 1,203% APR.

Don’t be fooled! The only way to truly be charged 300% for your payday loan is to roll it over twenty-six times, or over the course of a full year. This is simply unrealistic in most instances, as we explain below.

2. Payday loans trap people in a “cycle of debt”.

Every state has different regulations for payday lending. Some states don’t allow you to rollover your loans at all, making the cycle impossible. In states that do, Check `n Go limits rollovers to four-or the state-dictated limit-whichever is less.

Even with state regulations in place to keep you safe, it’s important to stay informed, watch your budget and be responsible with your borrowing. It’s also very important to make sure that you only borrow from reputable lenders. That’s why Check `n Go provides you with helpful resources for managing your finances.

3. Payday loans are designed to exploit low-income families.

While it is frequently stated that the payday loan industry seeks to take advantage of low-income individuals and their families, this simply misrepresents the actual users of payday loans. Every Check `n Go payday loan requires proof of employment and an active bank account to be issued. After the loan has been made, federal regulations are in place to keep borrowers on track to quick, penalty-free payday loan repayment.

In reality, payday loan customers represent the hard-working core of America’s middle class. Research shows that their incomes range from $25,000 to $50,000 annually, that 94% have a high school diploma or more, and that 56% of payday loan consumers have attended or graduated from college. Payday loan borrowers are educated, employed people who typically have families to support, who occasionally use payday loan to help bridge the gap between bills.

4. Payday lenders charge high interest rates to make huge profits.

This is a common misrepresentation of the payday loan industry. When compared to competing lending options, payday lenders fall short in terms of profitability. Small, short-term loans are expensive to provide and maintain relative to the demand. A recent study cited by the Buckeye Institute concluded that the average profit margin for payday loan only stores was only 3.57%. Your typical commercial lender has a profit of 13.04%, which is much higher than your local payday lender.

5. Payday lenders hide fees and terms dishonestly.

The Truth in Lending Act requires that lenders provide up-front, full disclosure of terms and conditions.

When you need a payday loan, it’s important to read all the fine print and to make sure that the lender is legitimate.

6. The payday lending industry preys on those deep in debt.

The growth of any business depends on consumer demand and the payday loan industry works exactly the same way. Payday lenders offer a valuable service that most banks and other lenders have stopped offering. Payday loans providers exist because there is a genuine need in the community they are able to provide. With state-to-state regulations and constitutional amendments delegating the fair and ethical treatment of loan consumers, the idea that the payday loan industry is predatory is a distorted, inaccurate picture of the reality of the business.

7. It costs less to pay overdraft fees than to choose a payday loan.

In addition to being more expensive than a payday loan, overdraft and late fees are applied to your credit card or bank account without immediate notification. This can leave you with an unpleasant surprise the next time you open a bill or look at your account statement. With a payday loan you know your rate, a one-time flat fee, before you sign, every time.

A payday loan fee, on average, is typically around $15. Compare that with a typical bank account overdraft fee ranging from $30-$54 and a credit card late fee which can be upwards of $37. Then there’s the alternative** of simply not paying your bills on time. Late bills often result not only in late fees, but in reconnection fees as well.

A payday loan, when used responsibly, can often be the smart alternative** to these truly expensive fees.

8. Those opposing the payday loan industry have the consumer’s best interest in mind.

Anti-payday lender activists seek to eliminate what short-term credit options remain available to those who need them. There is no way that those various organizations opposing payday loans can speak with one voice that represents all customers who continue to use payday loans the way they were meant to be used: with responsibility falling equally on the lender and the borrower.

9. Payday lenders use aggressive collections practices.

Companies, like Check `n Go are dedicated to practicing all collections in the best way possible. We strive to educate the consumer and to make sure that our borrowers clearly understand the payday loan process. Our ultimate goal: only lending to borrowers who are able to use a payday loan responsibly.

If collection on an account becomes necessary, Check `n Go always handles the process in a fair, lawful, and most importantly, professional manner, involving no criminal actions. If absolutely necessary, and after all other approaches have been tried, the lender may turn the issue over to a collection agency.

10. Communities will be better off if payday lenders are forced out of business.

Without the availability of payday loans, many hardworking individuals who simply need occasional help making ends meet would have no real options. This would inevitably lead to an increased number of bounced checks, late fees, and overdraft fees for these individuals, creating further expense and greater debt for them in the long run.

Anti-payday activists are attempting to make decisions for the community at large and remove options for people who work hard who just sometimes have to find a responsible way to stretch their budgets. Communities prosper when their citizens are given a variety of options that simply allow them to make the best financial choices for themselves.

How do I get a payday loan?

Applying for a payday loan is a fairly quick and simple process. Whether you’re applying online or in person, you will need to provide several important pieces of information, including a government-issued photo ID, proof of income, an open and active checking account and a working phone number. Depending on the state, other requirements may apply. Check `n Go will let you know within a short amount of time whether you qualify and how much you’re eligible to borrow. After reviewing the terms of the loan and signing the loan agreement, you will receive your funds. At Check `n Go stores, you can get your funds the same day if your loan is approved. If you apply online and your loan is approved, you could receive your funds as soon as the next business day. The loan amount and fee are due to be repaid on your loan’s due date – typically your next payday.

How do payday loan providers verify employment?

Lenders typically verify employment status or verify income by asking you to provide a recent pay stub, bank statement, SSI payment letter or other document verifying income. In some cases, we may verify your employment by making a quick call to your employer. This call will be confidential, and we won’t reveal why we’re calling. If you have any questions about our process, please talk to one of our associates at a Check `n Go store near you.

How do you qualify for a payday loan, also known as a cash advance?

To apply for a payday loan (also sometimes referred to as a cash advance), you must be at least 18 years old and have a regular source of income, a valid ID and an active checking account. Even if you have bad credit or no credit whatsoever, it’s possible that you can apply for a payday loan, cash advance or another of the loans we offer at Check `n Go. You will also be required to submit basic information including your contact information, like an address and working phone number. The best way to find out if you qualify for one of these loans is to apply online or in person at one of our convenient locations. We will quickly make sure you find out if you qualify for one of our short-term loans.

How do I pay off a payday loan?

Paying off a payday loan is simple. Once you have been approved for a payday loan, you will sign a loan agreement that outlines the terms for repaying the loan. Borrowers who get a payday loan at a Check `n Go store can repay using, where applicable, a check, cash, automatic checking account withdrawal, or debit card.

How do I apply for a payday loan?

To apply for a payday loan (also known as a cash advance), you must be at least 18 years old. Although some states may have additional requirements, at a minimum you’ll need to have:

  • A government-issued photo ID
  • Proof of income
  • An open and active checking account
  • A working phone

If you’re interested in a payday loan, apply online or at one of our Check `n Go locations. A Check `n Go associate will be happy to provide you with additional details and answer your questions.

Where can I get a payday loan?

When you need a short-term fix for an unexpected financial situation, you can apply for a payday loan with Check `n Go online or at any Check `n Go location throughout the United States. If you’ve had a loan application rejected by a bank, credit unions and other financial institution you may be able to find a money solution with Check `n Go. Even if you have a bad credit score or no credit history, you may be able to qualify for a payday loan. If you’d like to learn more, visit a Check `n Go near you or apply online, where available.

Which payday loan provider is best for me?

When it comes to payday loan providers, there are many options out there. It’s important to do your research before you make a commitment.

Taking out a loan to handle an unexpected situation can be stressful. That’s why it’s important to select a payday loan provider with a straightforward process that can help you get the funds you need. Here are a few things you may want to look for in a payday lender:

  • A clear, up-front explanation of rates and terms
  • The ability to apply online, if available in your state
  • A location near you, if you want to apply in person
  • A secure, confidential application process
  • A prompt loan decision, once you have provided all the requested information

At Check `n Go, we make the process as simple as possible, whether you apply online or at one of our hundreds of locations nationwide. To get started now, apply online or at a Check `n Go store near you.

How do payday loan companies check eligibility?

Eligibility requirements may vary, depending on the payday lender. To apply at Check `n Go you will need to have a valid ID (such as a driver’s license), proof of income, an active checking account and an active phone number. Depending on the state, you may be asked to provide additional information.

Poor credit score or no credit history at all? At Check `n Go, we realize that not everyone has a great credit score. Our loan application process is simple and straightforward, and credit history is only one factor. We do require a government-issued photo ID, an active phone number, an active checking account and proof of income – such as a recent pay stub, pension statement, or SSI benefit statement.

Whether you apply online or in person, it just takes a few moments to find out if you qualify for a loan. Apply at a Check `n Go store near you or apply online now.

What do you need for a payday advance?

As with many short-term loans, the application process can be simple and quick, depending upon your loan provider. At Check `n Go, you can find out if you qualify for a payday advance after completing an application online or in person. At minimum, you’ll need to provide proof of income, a government-issued photo ID, an active checking account number and an active phone number. In some states, additional information may be required. For more details, apply online now or contact your nearest Check `n Go store.

How much can I borrow with a payday loan?

When it comes to payday loans, the amount you can qualify to receive depends on a number of different factors, including income level and state of residence. You may be able to receive a higher maximum loan amount if you apply for payday loans online rather than applying in-store. Depending on whether or not a payday lender is a member of the CFSA, the maximum amount may be subject to other terms. When visiting a payday lender’s store or website, it should be easy to determine the maximum payday loan amount available to you prior to submitting your information.

Income Level
Payday loans are income-based loans, which is why lenders will request proof of steady employment. How much you earn will determine the initial amount you are able to receive. This keeps your payday advance loan from exceeding the amount you can afford to repay in one payday, not including other expenses.

State of Residence
This could affect the amount of a payday loan in one of two ways:

  • The borrower’s state of residence
    A CFSA payday loan provider will abide by the laws in each state in which they do business. The laws regulating payday loan amounts in the state where you live will be what adds to or detracts from your maximum amount. A CFSA lender will offer you the maximum amount your state allows, or less depending on your income.
  • The lender’s state of residence
    Non-CFSA payday lenders may practice what is called “choice of law.” This allows them to apply to your payday loan the rules and regulations of the state in which they originate, instead of the laws of the state in which you live. This is especially true of online lenders. Choice of law can potentially lead to maximum loan amounts that are not within your means.

How often can I use a payday loan?

Online payday loans are quick, hassle-free solutions designed to cover an unexpected monthly expense or emergency situation that falls between paychecks. Payday loans can be used whenever you need them. That said, payday advance loans should only be used occasionally, and not as an ongoing financial resource.

Before you borrow, answer the following questions:

  • Do you find yourself in this situation from month to month, or many months out of the year?
  • Are you going to be able to afford the loan plus the fee in two weeks, and stay within your budget?
  • Are you borrowing just enough to help your situation, or the full amount you are qualified for?
  • Are you looking at a payday loan as a long-term solution?
  • Will you have to use another payday loan to cover next month’s expenses?
  • Have you ever rolled over a payday loan?
  • Have you ever considered multiple payday loans in one month to make ends meet?

Depending on your answers, you may need professional credit counseling. Do not depend on a payday loan for multi-month help. Visit Check `n Go’s financial planning page, or seek out more serious financial aid.

Get the cash you need – when you need it.

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Online Disclosures

Customer Notice: Payday Loans are typically for two-to four-week terms. Some borrowers, however, use Payday Loans for several months, which can be expensive. Payday Loans (also referred to as Payday Advances, Cash Advances, Deferred Deposit Transactions/Loans) and high-interest loans should be used for short-term financial needs only and not as a long-term financial solution. Customers with credit difficulties should seek credit counseling before entering into any loan transaction. See State Center for specific information and requirements.

Rhode Island licensed check casher. California operations licensed by the California Department of Financial Protection and Innovation pursuant to the California Deferred Deposit Transaction Law. Texas loans originated by a third-party lender, restrictions apply. Eastern Specialty Finance, Inc., D/B/A Check ‘n Go is licensed by the Delaware State Bank Commissioner pursuant to 5 Del. C. sec. 2201 et. al., and expires 12/31/2021.

Check `n Go Online is not a direct lender in Texas, where instead it acts in the capacity as a Credit Services Organization in conjunction with third-party lenders.

*Approval depends upon meeting legal, regulatory and underwriting requirements. If approved and originated by 8:00 pm ET on a business day, online loans are typically funded the next business day. All times and dates are based on Eastern Time (ET). Check `n Go and third-party lenders may, at their discretion, verify application information by using national databases that may provide information from one or more national credit bureaus, and Check `n Go or third-party lenders may take that into consideration in the approval process.

We do not report credit in Ohio or Texas.

Products or services offered to customers may vary based on customer eligibility and applicable state or federal law. All available products subject to applicable lender’s terms and conditions. Actual loan amounts vary. See State Center for specific information and requirements.

Check `n Go currently operates online in: Alabama, California, Delaware, Florida, Hawaii, Idaho, Indiana, Kansas, Maine, Michigan, Mississippi, Missouri, Nevada, New Mexico, North Dakota, South Carolina, Texas, Utah, Wisconsin, and Wyoming.

Check `n Go currently operates in store locations in: Alabama, Delaware, Florida, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Michigan, Mississippi, Missouri, Nevada, New Mexico, Ohio, Oklahoma, Rhode Island, Tennessee, Texas, Utah, and Wisconsin.

Notice to California consumers: In order to process credit applications, service accounts, and provide the best online and in-store experience, Check ‘n Go collects various categories of information on consumers during the application process. Categories of information may include internet protocol address, internet and network information, geolocation data, product preferences, and inferences drawn from this information.

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