What is an Online Payday Advance

An online payday advance is an online loan that allows you to get cash until payday. In other words, it is a short term loan designed to last a week or two and to be paid back with your next paycheck.

How Does an Online Payday Advance Work?

If you find yourself needing some cash to get through until payday, and you don't have access to a credit card to charge your purchase or take a cash advance from, you may want to consider applying for one of the many online payday advance loans available.

The first step is to find a company that offers an online payday advance. You can do a search of lenders to identify one that offers the features you need. Some lenders require you to fax in information, such as proof of your employment in the form of pay stubs, while others will allow you to qualify just with an email address, listed phone number and bank account. Most do not require your credit score information. In addition to finding a lender whose requirements you can meet, you will also want to compare fees and costs associated with the online payday advance.

After you find a lender, fill out the required information, including your bank information. You then must specify how much money you need to borrow and when it will be paid back. You are usually charged a fee based on each $100 you borrow, and the fee may vary depending on how long you need the loan for- usually one to two weeks.

The fees for an online payday advance can be high in comparison to other types of loans. For some companies, the fees amount to an annual interest rate of 300 percent or higher. Therefore, you want to both verify how much you will pay in fees, and you want to ensure you understand all costs and fees associated with the loan before you apply.

You then agree to have the payment for the loan, as well as the fees, debited from your bank account. The money is then generally sent, either instantly or within hours depending on the lender and the time of day and the amount borrowed. You receive the money, and the online payday advance is paid back on the date specified when you took the loan, unless you renew the loan for another additional fee.