Regardless of the terminology it all means the same... and you had better be careful who you deal with!

How a payday loan advance works

Usually, the borrower (you) writes a personal, post dated check made payable to the lender (the company that is giving you the money) for the amount you wish to borrow, plus a fee. The company then gives you back money in the amount of the check you gave them... minus the fee.

This is where it gets important. The fees charged for cash advance loans are usually a set percentage of the amount borrowed. You will have to typically pay back anywhere from an extra $25 all the way up to $50. For every $100 you borrow (If a company wants you to pay a $50 fee on every $100 borrowed, avoid it like the plague! Look for a company that charges no more than a $25 fee for every $100 you borrow.

Payday loan advances also give you the option to extend or "roll-over" the money you borrowed. What this means is that you don't have to pay back the loan on your next payday. You will have the option delaying the repayment until the following payday.

However, before you 'click you heels' in joy, there is one catch. The payday loan advance company will charge you another fee if you decide to not repay the loan until after the due date. Again the fees vary... the lower the better. Look for a company that charges no more than $25 per $100 borrowed to delay the repayment of the money.

Under the Truth in Lending Act, the cost of payday loans - like other types of credit - must be disclosed. Among other information, you must receive, in writing (or on their web site), the finance charge (a dollar amount) and the annual percentage rate or APR (the cost of credit on a yearly basis).

How to get a payday loan advance

Now that you have seen how the payday advance loan works and the types of fees these companies should charge you, let's take look at how you should go about getting a payday advance loan. (Show me the money! ;-)

Typically, the payday loan advance company you deal with will ask you to fill out some forms containing such information as employment history, income history, references and checking information in order for you to get your loan.

This can take some time, as you usually have to contact the company, have them fax you the loan paperwork and forms, then you have to fill them out and fax them back to them.... this application process can be a real pain in the you-know-what, and unfortunately will delay you getting the money as soon as you would wish.

Thankfully, some of the better cash advance loan businesses have now eliminated all these hassles by simply by putting the entire application process on the Internet. In fact, at the better payday loan advance web sites all you have to do is fill out an simple web page form and they will electronically 'zap' the money into your checking account... no faxing, and no paperwork!

This also has the added benefit of you allowing you to go back to the payday advance loan company if you need another cash advance and you won't have to fill out as many forms again. You will have already established an account with them on your first loan request and your money will be 'zapped' into your checking account with just a couple clicks of your mouse. The Internet really does make getting cash advance loans a whole lot easier!

I hope you have gained some valuable information and will know what to look for when choosing a paycheck advance loan company.

For your convenience, I have listed below the recommended payday advance loan company to deal with. My ratings were based on:

A. The payday loan advance company's reasonable rates,

B. their ease of application- (almost everything done online)

C. Overall customer satisfaction.

#1. FastFundsNow ( highest loan acceptance rate)

I hope this article has been of help to you in getting your payday advance loan.

Source: Federal Trade Commission of The United States of America and Dwight Brown