How do online payday loans work?

Customer Notice: A single payday loan or cash advance is typically for two to four weeks. However, borrowers often use these loans over a period of months, which can be expensive. Payday loans and cash advances are not recommended as long-term financial solutions. read more

In 2000, quick-cash companies in Washington State issued 1.8 million loans totaling $580 million. In 2004, with a large increase in the number of lending companies and locations, these numbers grew to 3.3 million loans totaling $1.2 billion [source: State of Washington]. read more

Say your car broke down and you decide to borrow $300 for the repairs from a payday lender. You’ll write a post-dated personal check for $340 (the amount, plus a $40 finance fee), made payable to the lender. You enter this information online when applying for a payday loan on the internet. read more