Payments options for payday loans can vary from one lender to another. Your payday lender will explain the payments options that are available to you.
Pay the payday loan in full on the specified due date. You will get a confirming notice from your payday lender once he receives clear funds for full loan payment. Full payments that are made with money order or cashier’s check are considered “paid in full” once the payment is received. EFT payments are marked “paid in full” when funds get cleared from your bank. It usually takes 2 business days to get the funds transferred to your lender’s bank, via electronic funds transfers (EFT). All lenders do not offer this option. Check with your lender about all the terms and conditions.
Pay the earned interest fees only. This payment option can be used only once per payday loan. Not every payday lender provides this option. Check all the terms and conditions from your lender.
Pay the earned interest fee plus at least 10% or more of the original payday loan amount. This option is great when you cannot pay your full loan amount. It reduces your principal balance, future interest fees, and loan cost. Not all payday lenders provide this option. Confirm the details from your payday lender.
Pay the payday loan in full before the due date. If you pay the loan early, you are only charged the principal loan amount plus the prorated earned interest to the scheduled due date. Not all payday lenders would provide this option. Ask your payday lender for all the terms and conditions.
Most payday loans are by default set up for full payment option on the specified due date unless you have requested any other payment option. All loan payments are automatically taken from your bank account via EFT on the specified due date unless you have asked for and have been approved of any other arrangements.
Your payday lender will determine any payment option change request, so make sure to ask them for any change request. For most of the lenders, your payment should be received by 5:00 PM EST, two bank business days before your specified due date. Business days for banks are Monday through Friday that excludes bank holidays. It’s important to understand all the terms and conditions, payback terms, rates, penalties, etc., before taking the loan.
The fee on loan extension is equal to the interest that is accrued up to the current due date (usually the finance charge that was previously disclosed). Extending a loan will usually forward your outstanding loan balance to your next payday that becomes your new due date. However, your next payday should be less than 31 days from your previous due date.
All the clauses for Extensions or Early Payments vary by lender and are subject to change. You may not be eligible for a loan extension. Ask your lender about the options that are available to you. Your lender is the best person to answer any questions about loan extension or early payments.
Most payday lenders will automatically email a payment reminder to your email address showing your loan balance, due date, and payment options. Make sure you provide your correct email address, and your emails are not SPAM blocked, so you receive this reminder. Not every payday lender provides this option. Ask your payday lender how they will contact or email you.