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.
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 The funds are then withdrawn on the date repayment is due.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.