How to Open a Payday Advance Account

A payday advance, or a payday loan, is a short-term, unsecured loan that covers the borrower's financial needs in-between paychecks. Individuals use payday advances to pay for their rent, utilities or other necessities. Payday advances are essential to an individual when they are in a financial burden. You can open a payday advance account by following the simple steps below. 

1. Verify the requirements you need in order to receive a payday advance. You need to follow these requirements in order to qualify for a payday advance: Be 18 years or older, have a monthly, verifiable income of $1,000 USD, be a U.S. citizen and an active banking (checking) account that is outstanding. Requirements depend on the payday advance lender you are using to obtain the loan.


2. Gather all of your documents, such as a valid state identification card or driver's license, checkbook, Social Security Number, utility bill showing your current address, current bank statements, references, telephone number and an e-mail address.


3. Contact payday advance lenders and inquire them about their payday loans. Ensure you ask them about eligibility, fees, annual percentage rates, terms, repayment options, finance charges and other relevant information.


4. Apply for your payday advance. When you choose the lender, you want to use, submit the application for the payday advance with all of your documents you need. The person you speak to has to verify your income, identity, references and employment because this is part of the payday advance application process. You have to fax in your documents if you applied for a payday advance online.


5. Wait for the payday loan lender to process your application. The status of your payday advance application could take up to 30 minutes or up to an hour. If you applied online, you may have to wait 24 hours.


6. Complete all paperwork you need to complete to finalize the payday advance. The representative will speak to you if you were approved for the payday loan. She will tell you how much you can borrow and will explain the terms of the loan to you. You must agree to the terms and then sign all documents to receive your money. In addition, you must give the representative a personal check with the loan amount plus the fees they charge for the loan in order to secure your loan. The personal check is deposited on the day of your next paycheck or it is debited out of your bank account.