Payday Loans › Before You Borrow

Complete this checklist before applying for any payday loan.

If you are considering a payday loan, work through these steps first. You may discover you do not need one, or you will be better prepared to minimize cost and protect your information.

Checklist

Before you apply

1. Map your cash flow

Use Balance On Hand to see exactly when bills are due and when income arrives. Identify the exact dollar amount of the gap and how long it lasts.

2. Contact your creditor first

Call the company you owe. Ask about payment extensions, hardship plans, or late-fee waivers. A $25 late fee is almost always cheaper than a $60 payday loan fee.

3. Check for free alternatives

Call 211 for local assistance. Check if your employer offers paycheck advances. Ask your credit union about PALs. Full list of alternatives →

4. Calculate the total cost

Ask: what is the total dollar amount I will repay? If you borrow $400 at $15/$100, you repay $460. If you roll over once, it is $520. Understand fees →

5. Verify the lender is licensed

Check your state’s financial regulator website. If the lender is not licensed in your state, they may not follow your state’s fee caps or consumer protections.

6. Read the privacy policy

Is this a direct lender or a lead generator? If the site says “we are not a lender,” your data will be shared with multiple companies. Privacy risks →

7. Plan your repayment before you borrow

Before signing, use Balance On Hand to project whether you can repay in full on the due date without needing another loan. If you cannot, the loan will likely be rolled over.

8. Borrow only the minimum

Do not borrow more than the exact gap amount you identified in step 1. Every extra dollar costs $0.15+ in fees every two weeks.

Before applying for a payday loan or cash advance, use Balance On Hand to project upcoming income, bills, and spending.

It is free to use and does not require a bank login, checking account connection, Social Security number, or credit card.

Balance On Hand is a cash-flow planning tool. It is not a lender, loan servicer, or financial advisor. This page is for general educational purposes only and does not constitute legal, tax, or financial advice.