The Payday Advance & How it Works

A payday advance provides a small, unsecured, short-term cash advance that is usually repaid on the borrower’s next payday. Customers typically choose payday advances to cover small, often unexpected, expenses and to avoid costly bounced-check, and overdraft protection fees, late bill payment penalties, or other less desirable short-term credit options.

How It Works

To obtain an advance, customers with an active checking account, a regular income and proper identification complete a simple application and, upon approval:

• read and sign an agreement with Truth in Lending Act (TILA) disclosures that provide transaction terms and cost (in dollars and annual percentage rate);
• write a personal check for the advance amount plus a fee; and
• immediately receive the advance in the value of the check minus the fee.

The customer’s check is held for an agreed upon time period, usually about two weeks. On the agreed upon date, either the check is deposited or the customer returns with cash to reclaim the check.

The “Financial Taxi”

Just as commuters understand that a taxi is a convenient and extremely valuable service for short distance transportation, customers know that the payday advance service is convenient and economical and should be used to meet short-term cash needs. Such services are inappropriate for meeting long-term financial obligations.

Payday advance can be a dignified and cost-efficient “financial taxi” for customers to get from one payday to the next when faced with a need for immediate cash.