Repaying a Check Advance in a Timely Manner

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How soon will I have to repay a check advance?

Repaying a Check Advance in a Timely Manner

Repaying a check advance loan in a timely manner is very important. This is because these loans typically have high fees and interest rates associated with them. Therefore failure to repay the loan can not only have an adverse effect on the borrower's credit history, but can also result in greater debt for the borrower. However, in most cases repaying the check advance is an automatic process.

Most payday loans are based on the borrower's income and the loan agreement specifies the loan must be repaid the next time the borrower is paid by his employer. The borrower also typically authorizes the lender to withdraw the funds from his bank account as soon as they become available. However, these terms may vary from one lender to the next. For example, some lenders may make provisions which specify the loan does not have to be repaid on the next payday if the borrower is scheduled to be paid within seven days of the loan approval. In these cases, the loan may be repaid on the subsequent payday.

   

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