What Is a Payday Loan?

Whether you call it a “payday loan,” “cash advance,” or “check loan,” chances are you’re talking about the same thing: a short-term loan (up to 18 days*, depending on state of residence). Typically available in smaller dollar amounts, a payday loan is to cover those “I need money now” expenses and bridge any financial gaps until the next payday.

No matter where you receive your payday loan—a main street store or online— the service generally works the same way: a customer goes through a short application process. After a few verifications which may include bank, income and credit, the customer receives a small dollar loan amount best suited for their situation and needs. In most cases, applicants then use their payday loan to cover the costs of unexpected personal expenses without having to ask friends and family for money or incur additional costs from bouncing a check with their bank.

Payday Loan Costs/Fees

Fees vary by state and the amount of money requested for your loan. A payday loan will usually have a fixed fee that is a set dollar amount for every $100 borrowed. Cash Central’s fees range from about $15 to $27 per $100 depending on the regulations of your state. See an example APR in your state.

As an example, a typical APR for a 16 day Payday Loan of $400.00 has an APR of 570.31% which is a finance charge of $100.00. Check sample payday loan APRs and fees based on your amount, duration (loan term) and state with our Loan Calculator.


In addition to being a short-term help, payday loans can be flexible in their repayment options. In some states, refinancing allows customers to extend their loan term in the event they are unable to pay it back on their next payday. A refinance usually includes paying only the original loan fees at the time of the original scheduled repayment date. Refinancing does increase the overall cost of the loan.

What Is a Payday Loan Used For?

A short-term payday loan has a variety of uses, all of which involve a decision of whether this type of loan is the right solution for the borrower. Typical uses include:

An Online Payday Loan With cash Central

Cash Central has been on the forefront of short-term lending integrity since day one. Despite negative publicity that occasionally swarms the payday loan industry, Cash Central takes pride in its lending approach. The choices of where to secure your loan may seem endless but here are a few things to consider as to why we may be right choice for you:

A payday loan shouldn’t add stress to your situation. That’s why Cash Central strives to make online lending simple.

*Loan due dates are determined based on customer’s next pay date.

**When application is submitted by 7:45 PM EST. Customers entering into their first loan with Cash Central may experience a delay in loan funding.