In most states, a customer can usually take out a payday loan for anything between $50 and $1,000

In most states, a customer can usually take out a payday loan for anything between $50 and $1,000

Payday loans: How do they work

However a customer is applying, the decision to approve (or decline) is usually a fast one. Once proof of income and identification have been established, it’s usually just a matter of minutes before the decision comes through.

If approved, the customer will then authorize the lender to withdraw money from their checking account once the helpful site loan period is over, or hand them a post-dated signed check. Again, the repayment period is usually either two weeks or one month.

The amount a customer can borrow will be subject to two factors – how much the lender sees fit to lend without incurring a huge amount of risk and the maximum loan limits set by each state. Once the paperwork is in order, the money will be transferred to the customer, typically electronically into their checking account. This can take a matter of hours (it is usually much faster if the payday loan is applied for in person at a physical store) or sometimes up to two business days. Continue reading In most states, a customer can usually take out a payday loan for anything between $50 and $1,000