Cash Advance Articles Cash Advance Loans - Understanding Payday Loan Costs Tip! Getting a cash advance from most companies is very easy and you can borrow with just your valid ID and pay stubs, however, some companies need more information. That is why it is important to call the cash advance company in advance to see what is required. Cash advance companies determine their fees differently that traditional financing companies. Instead of being charged a rate, you will be charged a flat financing fee. Since cash advance companies structure their loans differently, they have to adjust how they determine fees. However, even cash advance companies determine their rates in their own way. So shop fees for the best payday loan. Fees Instead Of Rates Since payday loans are for such a short period, typically less than two weeks, financing companies structure the loan cost as a flat fee. There are no application costs or daily interest charges with most lenders. But the federal government still requires cash advances' costs to be posted as an APR. The idea is that you can make comparisons between all types of credit, including credit cards, personal loans, and home equity line of credit. If you come to your due date and can't pay off the entire loan, then you have a couple of options. You can pay your financing fee and put off the principal payment until your next payday. The other option is to just pay the financing fee. In both cases you will be charged an additional flat financing fee for the delay. The Reason For The Difference Payday loans do have a higher APR than other forms of credit for a couple of reasons. First of all, cash advances are for such a small amount and short period that the cost is high to process. The other reason is that payday loans have one of the highest levels of risks since they are not secured and no credit check is required. Not All Financing Fees Are The Same Tip! Many of the loan companies cannot loan less than $1000, but cash advance companies may see your $1000 loan as a large loan and add on a large interest rate as well. Even between payday loan companies you will find a wide range of financing fees. Some lenders determine their fees on a daily period; others on a two week period. A few companies also charge applications fees, although most waive these fees for first time borrowers. To be sure you are getting the best deal, read carefully the information about financing fees. All financing companies must disclose information on their fees prior to discharging any loan. So most lenders will post the information on their website. If you have any questions, you will get a quick answer with email. Here are our Recommended Payday Loan Companies online. Carrie Reeder is the owner of ABC Loan Guide, an informational website about various types of loans.