How Do Payday Loans Work?

When you’re stretching your money as much as possible but not quite making it to payday, it’s likely that you feel overwhelmed and stressed. Low finances and lack of savings create a lot of stress. When you fill out a payday loan application and are approved, however, you can avoid this stress and get yourself back on your feet. At Your Loan Depot in Texas, we offer payday loans to help you when you’re struggling with finances.

What is a payday loan?

A payday loan is a short-term cash loan that is based on either (1) the borrower’s personal check held for future deposit or (2) electronic access to the borrower’s bank account.

Let’s say you’re the borrower:

  1. You write a personal check for the amount borrowed from the loan company. This check will also cover a predetermined finance charge that the company requires.
  2. You receive cash.
  3. The loan company will hold the check until your next payday. At that point, the loan and finance charge must be paid at once.

It’s that easy! If you don’t have enough to pay the full amount when payday arrives, you can roll over the loan from your lender and pay an additional fee. Lenders now also will work with you for electronic access to your bank account if you receive direct deposit at your employment.

What are the requirements to get a payday loan?

Whether you’re getting a payday loan online or at a physical building, there are certain requirements you’ll have to meet. You’ll need the following:

  • An open back account in somewhat good standing
  • A steady source of income
  • A form of identification

You don’t need to have a full credit check performed or answer questions regarding your ability to repay the loan.

How do you pay it off?

Just like any loan, it’s best to pay off your payday loan as quickly as you can. If you’re in a situation that warrants a payday loan, then you likely just need some cash — not very much — quickly to get you to payday.

That being said, payment terms and options, along with different fees, will vary by state, product, and case. Make sure you understand all of your lender’s requirements before you commit to a loan. This could save you time, headaches, and, ultimately, a lot of money down the road.

Your Loan Depot

All payday loans will vary depending on where you are. With Your Loan Depot in Texas, payday loans are available up to $1,000. If you need more than $1,000, a title loan may be a good option for you. We pride ourselves on our personal relationships with all of our borrowers, and we hope to help you in your time of need. If something changes in your situation, every loan comes with a 72-hour cancellation period.

Whether you need a payday loan in Tomball, are looking for a trustworthy loan company in Houston, or are in another part of Texas, we hope you choose Your Loan Depot.