How to Take Out a Payday Advance

Unfortunately, money is not always there when you need it. Things come up, such as unexpected expenses or the car picks just the wrong moment to break down. To bridge the gap between paydays, you can take out a payday loan or payday advance. The name of it differs depending on where you go but it's the same thing. A payday advance is a loan made on your next paycheck. You receive the money you need now, which needs to be paid back, plus the service fee, when you get paid. It is not an ideal thing to have to do, but when the need arises, it is an option worth looking in to.

Difficulty: Moderately Easy

Instructions

Things You'll Need:

• Current paycheck stub
• Social security card
• Driver's license or other picture I.D.
• Current bank statement
• Contact info for a few friends or family members
• Checkbook

1. Check out the establishments that offer payday advances in your area. These include places that also cash checks and many pawn shops also offer this service. Go in or call them and ask about their terms and conditions for a payday advance as well as the documents they require. The primary documents you need are listed here, but it could differ a bit from place to place.

2. Enter an establishment that offers this service and ask for an application for a payday advance. Fill out the application. You will need to put down a lot of personal information including your social security number, driver;s license number and the name and address of where you work. With your employment informaiton, you will also have to inform them the amount you bring home and how often you are paid. At the bottom of the application, there is usually a place for a reference or two. Put the names and contact numbers of a few friends or family members who would be willing to stick up for you.

3. Give the attendant or clerk the completed application as well as your driver's license or other picture I.D., your social security card, a copy of a recent paycheck stub and a copy of your most recent bank statement. The attendant will make copies of the paperwork and give the documents back to you. They may also ask you a few additional questions such as "Have you recently applied for bankruptcy?" or "Do you have a payday advance anywhere else?" Answer honestly. They are likely to discover the truth when they enter your information in the system so it's better for you to tell them than for them to find out the hard way.

4. Wait for the attendant to put all of the information from the application into the computer system. Once the attendant is finished, they will tell how much of an advance you are eligible for. In most cases, you will be writing a check for that amount plus their service charge. This, however, may differ depending on where you go and where you live. Some places take a blank check and put in the amount for automatic withdrawal from your checking account after you get paid. Hand over the completed check. You will sign and date the paperwork for the advance. Once that is complete, you will be handed your money.

5. Find out exactly how the payday advance place wishes for you to pay back the money. Even though you wrote them a check, most prefer that you pay off the advance in person and pick up your check at that time. In many states, you are allowed to write another advance if you find it necessary, but you have to wait a period of time, often 24 hours, before doing so.

Tips & Warnings

• States regulate the payday loan business and many have harsh regulations. Make sure you know what the rules are in your state before you take out a payday advance.
• The most common regulation is that you are not allowed to take out more than one payday advance at one time. If you already have one advance, you probably won't be able to get another.
• The most money you are generally allowed to take out in a payday advance is $500, but that will depend on where you go and how much you make.
• If you are an active member of the military, you will probably be prohibited from taking out a payday advance. A federal law has been passed that restricts the amount of interest that can be charged to the military and payday loans are usually way above that amount. If you are a member of the military, call and ask before applying.