A payday loan can help when a bill cannot wait until payday. Used with a plan, it covers the gap and is paid off on your next payday. Used without one, it can leave you short again two weeks later. These 13 tips walk you through what to do before you apply, how to pick a lender, how to borrow, and what to do if repayment gets hard.
Quick answer
To borrow a payday loan responsibly, borrow only what your next paycheck can repay after your bills, and use a lender licensed by the California DFPI that shows every fee before you sign. Put the due date on your calendar, and if you see you will come up short, call your lender before the due date.
- Do the math first: your next paycheck minus your bills is the most you can repay.
- Check the lender's license on the DFPI website before you share any information.
- Keep it to one loan at a time. Never take a new loan to pay off the old one.
- Never pay a fee up front to get a loan. Real lenders do not ask for one.
On this page
The tips at a glance
Before you apply
Choosing a lender
When you borrow
Before you apply
1Know exactly what the money is for
Write down the bill or expense and the exact amount you need. A payday loan works best for a one time cost that cannot wait until payday, like a car repair, a medical bill or a utility bill. If the money would go to everyday costs that come back every month, a loan only moves the problem to your next paycheck.
2Do the math on your next paycheck
Take your next paycheck and subtract rent, utilities, food, gas and any other bills due before the paycheck after it. What is left is the most you can repay without coming up short. Say your paycheck is $1,200 and those bills come to $1,050. You have $150 of room, so repaying $300 would leave you $150 short, and a smaller loan, or no loan, is the better choice.
3Try the free options first
Call the company you owe and ask for a few more days, ask your employer about a payroll advance, or call 211 to find local help with rent, utilities and food. If one of these covers the gap, you do not need to borrow at all. See our list of 15 ways to get cash today and our guide to payday loan alternatives.
Choosing a lender
4Check that the lender is licensed in California
Before you share any personal information, make sure the lender is licensed by the California Department of Financial Protection and Innovation, often called the DFPI. You can look up any lender's license on the DFPI website. Cash in Flash is licensed by the California DFPI, and our license details are at the bottom of this page.
5See every fee before you sign
A good lender shows you the fee, the total you will repay and the due date before you agree to anything. Read those numbers and make sure they match what you expected. At Cash in Flash there is one flat fee of 15% of the check amount, so a $300 check has a $45 fee and you get $255, and it is shown before you sign. If a lender will not tell you the full cost up front, walk away.
6Never pay a fee up front to get a loan
A real payday lender does not ask you to send money, buy a gift card or pay an "insurance" or "processing" fee before you get your loan. Anyone who asks for money first is very likely running a scam. Stop, do not send anything, and look the company up on the DFPI website.
7Be careful with offers that sound too good
Be wary of anyone who promises you will be approved before they know anything about you, or who reaches out first with a loan offer. A responsible lender looks at your income and whether you can repay. Apply only on a lender's own website that you found yourself, and never give your bank login, card number or security codes to someone who called, texted or messaged you.
When you borrow
8Borrow only what you need
You do not have to take the largest amount you can get. If the repair is $150, borrow $150. Because the fee is a share of the check amount, a smaller loan costs less: a $150 loan has a fee of about $26.47, so you repay about $176.47, compared with $300 on a $255 loan. That is about $124 less coming out of your next paycheck.
9Plan the payment before you sign
A payday loan is repaid in one payment on your next payday, usually 14 to 31 days after you borrow. Write down the due date and the exact amount, and make sure that money stays in your account. Treat it like rent: it gets paid first, before anything that can wait.
10Set two reminders before the due date
Put two reminders in your phone, one three days before the due date and one the day before. Check your bank balance when they go off so the payment goes through. If something has changed, the early reminder gives you time to move money or call your lender.
If repayment gets hard
11Call your lender before the due date
If you can see you will be short, call before the due date, not after it passes. You have more choices when you reach out early. Ask what options they have, and ask for any change in writing. At Cash in Flash, call us at (888) 999-9859 and we will go over your options with you.
12Keep it to one loan at a time
Taking a new loan to pay off the old one means paying a new fee without fixing the gap. Pay off one loan in full before you think about another, and never borrow from a second lender to cover the first.
13If you keep coming up short, fix the gap
Needing a loan every payday is a sign of a budget gap, not a one time emergency. Try a simple plan like the 50/30/20 budget rule, ask your billers about lower payments, and start a small emergency fund, even $10 a paycheck. A nonprofit credit counselor can also help you make a plan.
What to avoid when you borrow
- Lenders that are not licensed by the California DFPI.
- Anyone who asks for a fee, a gift card or a payment before you get your loan.
- Taking a new loan to repay an old one, which adds a new fee without fixing the gap.
- Borrowing more than your next paycheck can repay after your bills are paid.
- Giving your bank login, card number or security codes to someone who called, texted or messaged you first.
Frequently asked questions
How do you use a payday loan responsibly?▾
Use it for a one time expense you can repay from your next paycheck. Borrow only what you need, choose a lender licensed by the California DFPI that shows every fee before you sign, keep it to one loan at a time, and set a reminder for the due date.
How much should I borrow with a payday loan?▾
Only what you need, and no more than your next paycheck can repay after rent, food and other bills. A smaller loan has a smaller fee. At Cash in Flash you can borrow $100 to $255, with one flat fee of 15% of the check amount, shown before you sign.
What happens if I cannot repay my payday loan on time?▾
Call your lender before the due date. You have more choices when you reach out early. If you borrowed from Cash in Flash, call us before your due date at (888) 999-9859 and we will go over your options with you.
How can I tell if a payday lender is legitimate?▾
Check that it is licensed by the California DFPI. You can look up any lender's license on the DFPI website. A real lender shows the fee, the total and the due date before you sign, and never asks for money up front. Cash in Flash is licensed by the California DFPI.
How often is it OK to use a payday loan?▾
Only once in a while, for a true one time expense. If you find you need one every payday, that is a sign of a budget gap. Look at your budget and try free help, like 211 or more time from your billers, before you borrow again.
Need $100 to $255 until payday?
Borrow only what you need, online in about 5 minutes. If you are approved, money can arrive as soon as today, and every fee is shown before you sign.
