Once a payday loan is approved, you may receive cash or a check, or have the money deposited into your bank account. You will then need to repay the loan in full plus the finance charge before its due date, which is usually within 14 days or before your next paycheck. The payday lender has your check. You can collect it on the due date of the payment.
If you don't have enough in your account, your check will be returned. Your bank and payday lender will charge you a fee. Even if a creditor hasn't sued you, if your income is exempt, you should be alert to prevent a payday lender from seizing them. If the payday lender has your checks or authorization to access your account, you don't have to sue it to get paid.
If the payday lender charges a higher rate than what Washington law allows, the payday loan cannot be enforced. Any payday lender that causes you to pay an additional fee to “renew your payday loan” and make the entire loan mature later is violating state law. To determine your rate and terms, the payday lender may request a strict credit check to see your credit score, although this is less common with a payday loan. By writing a check to your account or authorizing the payday lender to withdraw money directly from the account, you give the payday lender permission to withdraw money from your account, regardless of the type of funds in the account.
You may not be able to get a traditional bank loan to meet your needs for quick cash, but some of these methods of stretching your finances the next payday might work better than a payday loan. You may think that a payday loan is the only solution to handling an emergency bill, or even to pay off another debt, but the truth is that a payday loan will end up costing you more than the problem you are trying to solve. However, remember that payday loans carry risks and, if you are not confident in your ability to repay your debt, a payday loan could ruin your credit rating or even land you in court. Also, most payday lenders don't perform a credit check; if the lender isn't interested in your credit history, this could be a sign that you're dealing with a payday lender.
If your payday lender doesn't require a strict credit check and you can repay the full amount by the required date, a payday loan will usually not negatively affect your credit. If a payday loan is not paid in full on the due date or before the maturity date, the licensee may collect, after the due date, interest at a rate not exceeding 2.75% per month, except if a licensee makes a later payday loan to the customer under sub.