Payday loan questions, answered plainly.
Common questions about payday loans, answered with facts from official sources. No sales pitch, no affiliate links, no lending recommendations.
What is a payday loan?
A short-term loan (typically $100–$1,000) due on your next payday, usually in 14 days. The lender charges a flat fee (typically $15 per $100) and requires access to your bank account or a post-dated check for repayment.
What is the typical APR?
300%–700%+ depending on your state. A $15 fee per $100 for 14 days equals approximately 391% APR. Learn more about APR →
What is a rollover?
If you cannot repay in full on the due date, you pay the fee again to extend the loan for another term. The principal stays the same. This is how borrowers end up paying more in fees than they originally borrowed. Learn about the debt cycle →
What is a lead generator?
A website that looks like a loan application but is not a lender. It collects your personal information and sells it to multiple lenders and marketing companies. Learn more →
Can I be arrested for not paying?
No. You cannot be arrested for failure to pay a civil debt. If anyone threatens arrest, they are violating the law. Learn about your rights →
Are payday loans legal in my state?
It depends. Approximately 18 states ban or effectively prohibit payday lending. Others allow it with varying fee caps. Check state laws →
What are alternatives?
Credit union PALs (max 28% APR), employer paycheck advances, community assistance programs, creditor negotiation, and cash-flow planning with Balance On Hand. See all alternatives →
How can Balance On Hand help?
Balance On Hand projects your cash flow so you can see whether you actually need a loan, or whether it is a timing problem you can solve by rearranging payments. Free. No bank login. No credit check.
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.