Payday Loan Repayment 101
The payday loan repayment process varies from lender to lender. Many storefront lenders only accept payday loan payments in person during business hours. By contrast, online lenders like CashNetUSA let you easily repay over the Internet. If you’ve ever set up an automated bill payment, you’re already familiar with how online repayment works: We use Automated Clearing House (ACH) to electronically process your loan payment. You authorize us to debit a payment from your checking account on your scheduled due date, and we’ll make the draw on that set date.
Depending on your unique situation and the regulations in your home state, there may be as many as three repayment methods available when a due date comes around: pay in full, make a partial payment or request an extension on your payment. The terms governing payday loans vary widely from state to state, so be sure to check out our Rates & Terms page to review the details where you live.
How Do I Pay Back a Payday Loan?
Pay in Full
Generally, the best option is to repay a loan in full. In this case, the full amount owed — the amount borrowed plus interest and fees — is withdrawn from your checking account on or before the loan’s due date. Paying in full is almost always the best option because it means less spent in fees and interest. These additional charges can start to build up if you split your payments or get an extension.
Another option is to make partial payments on the payday loan. Partial payments are periodic payments that reduce the total loan fees and principal over time, but result in a larger total repayment as interest accumulates.
Payday Loan Extensions
Finally, you may be eligible to request a loan extension. An extension allows a borrower to extend the loan due date while incurring additional costs. While convenient for some people, it should only be used as a last resort.
How Long Do I Have to Repay a Loan?
The answer to this question depends on a number of factors like how much you borrowed and what kind of loan you took out. Additionally, each state has specific rules that govern loans. For payday loans, your due date will usually be your next payday, or between 8 and 35 days from the date you took out the loan.