While a payday loan is a way for an individual to access instant cash, it is also a true loan. When we say “true loan” we mean money is actually being lent from a lender to a borrower, and the terms of the loans are established beforehand. A loan uses an interest rate that is usually specified using an APR. A cash advance isn’t a loan at all, because its actually a business-to-business transaction, thus: these transactions aren’t regulated in ways traditional loans are.

Some payday loan companies gather your personal information and then shop around for a lender. That means your information could go out to third parties as part of the lending process. Other companies will even sell contact information, leaving you dealing with sales calls and spam emails. LendUp protects customer information and will never sell it.


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Though payday loans can be used for a wide range of purposes, they’re generally designed to cover unexpected expenses. Common uses include forgotten bills, car repairs, medical expenses or any other sudden event. You shouldn’t use payday loans to fix long-term issues in affording your credit, for day-to-day expenses or for a big-ticket item like a car or house.

Legal Disclaimer: The owner/operator of this site is not a lender or an agent, broker, or representative of any lender. This website offers a free service that attempts to connect consumers with lenders who may have loans for them. Loans are not available in all states, and approval is not guaranteed. Loan amounts, rates, and terms will vary depending on each lender and consumer qualifications. Lenders may conduct credit checks that could affect your credit score.
In many cases, borrowers write a post-dated check (check with a future date) to the lender; if the borrowers don't have enough money in their account by the check's date, their check will bounce. In Texas, payday lenders are prohibited from suing a borrower for theft if the check is post-dated. One payday lender in the state instead gets their customers to write checks dated for the day the loan is given. Customers borrow money because they don't have any, so the lender accepts the check knowing that it would bounce on the check's date. If the borrower fails to pay on the due date, the lender sues the borrower for writing a hot check.[33]
Check Into Cash is one of the most widespread payday lenders in the country, offering payday loans, installments loans and other financial services to customers in 32 states. Payday loans aren’t legal everywhere, and in some states, Check Into Cash may offer different services. Because it has the broadest service area, reasonable fees for a payday lender and an array of financial services, it is our pick for the best lender overall.
Damon Duncan (@Damon_Duncan) (@DuncanLaw) is an attorney on the North Carolina Bar Association and Foundation’s Board of Governors, a member of the Elon University School of Law’s Alumni Council, the Secretary of the North Carolina Bar Association’s Bankruptcy Section and adjunct professor at Elon University School of Law and Guilford Technical Community College.
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