Application. You submit an application either in person at a physical lender location or online through a lender's website.
Documentation. You might need to provide identification, proof of income, and bank account details. The majority of lenders might not perform a thorough credit check.
Loan Amount. You request a loan amount of $100.
Approval. If approved, the lender lends you the requested amount. Approval often depends on your income and ability to repay.
Repayment Date. The repayment date is typically set for your next payday, usually within a few weeks.
Repayment Process. On the due date, the lender automatically withdraws the loan amount plus fees and interest from your bank account. Some lenders may require you to repay the loan in person.
Fees and Interest. Payday loans come with high-interest rates and fees, which can significantly increase the total repayment amount. APRs can be extremely high, often reaching around 700% or more.