Q&A: How does a payday loan work and how could I get one if I have a crappy credit?

Question by Waylin Skinner: How does a payday loan work and how could I get one if I have a crappy credit?
How does a payday loan work and how could I get one if I have crappy credit?
Do I have to pay the whole amount of the loan back in one payday?

Best answer:

Answer by Jane Does
First off, most payday loans places don’t even run a credit check. If you go somewhere like Ace Cash Express (a national chain), what they will do is have you write out a check for the amount of the loan plus fees, post-dated for your next payday. Some places also allow you to use a debit card if you prefer. The requirements are that your next payday will cover the amount and you have a working bank account. At Ace, in particular, the fees are $ 20 per every $ 100 that you borrow. Or $ 100 for every $ 500. It’s very expensive. I cannot tell you which places, but there are some that offer you the ability to refinance your loan before your payment is due (don’t wait until your paycheck has hit your bank account to start this process or your money will be GONE). This makes you acquire extra interest charges, so be wary. But I know it is possible. I don’t do payday loans myself, but my mother in law practically lives off of them. She has found a company that allows her to “pay it out” by refinancing and taking a partial payment from a few different paychecks rather than taking it all out of one. But I guarantee you this is not an option everywhere, and you’d do best to ask MANY questions and read ALL fine print. Companies like this are in it to make a buck…so don’t expect any cashier to answer any questions you DIDN’T ask. They could care less, because as soon as your paycheck hits your bank, they will get their money.

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