I have encountered many questions about short-term loans in my career, and most of them were about Payday Loans. Many people are taking them; however, not all of them understand the product. To leave my fingerprints in my readers’ financial literature levels, I have prepared an overview of the payday loan steps I have encountered so far. These are the things you should know about the payday loan process before taking it.

Online Application

You start the process by applying online. In the payday loan request form, you write your data, bank account information, source of income, and the amount you want to borrow. Each matching service can have additional information you need to submit as well. Overall, the process takes no longer than 5 minutes, and you can do it day or night, weekends, or holidays, from the comfort of your own home. As soon as you double-check all the information, you click submit.

Approval Decision

Moments after you apply, you can already get a decision from a direct lender. Because the payday loan approval rate is high, in most cases, the decision is positive. The approval takes very little time because there is no third party involved. The lender does not check your credit score the traditional way, but rather focuses on your source of income. It takes less time, and the greatest part of applicants get a positive outcome.

Signing the Contract

If you get approved, the direct lender will contact you to present the contract. You must take your time to study all terms, interests, fees, costs, and due dates. In case there are any ambiguous terms, address them to the lender on the spot. At this point, you are under no obligation to sign the document and have all rights to ask for changes. When all suits your wishes, both you and the direct lender sign the contract digitally.

Receiving the Money

After you sign the agreement, you will receive the funds rather quickly. The period depends on the lender’s cut-off times. It means that if you get approved before noon of a workday, you receive your payday funds the same day. In case your decision came in the afternoon of a business day, on holiday, or during the weekend, you will get the cash during the next business day. The lender transfers the money to your bank account, and you are free to use it right away.


After you have solved your emergency spending, it is time to give back the money. Usually, the lender automatically extracts the necessary sum from your bank account on the due date. Your only responsibility is to make sure you have enough funds in there. Calculate the final sum correctly, including all fees, interests, and costs. It would help if you had a little extra in your account, rather than less because most lenders have high late repayment fees. If you are punctual with the payoff, there is nothing for you to worry about!

As a final remark, you need to know that this is only an overview of the practices I have studied and encountered in my career. Each matching service and lender can vary these details, so make sure you carefully read the contract and ask about uncertainties at any point!