Scroll Top
19th Ave New York, NY 95822, USA

How Do Payday Loan Stores Work?


Kallyss provides the best quality service for you to find the most suitable payday loan for your circumstances. Kallyss has access to payday loan stores in all the applicable states and even if you have a history of bad credit, they will be able to find a payday loan that works for you.

If you are short of money this month and have incurred a cost out of your control such as a car bill or pet treatment then it may be worth looking into getting a payday loan from a payday loan store.

For that reason, Kallyss has made this handy guide to tell you what a payday loan store is, how they work and whether or not a payday loan is right for you.

What Is a Payday Loan Store?

A payday loan store is simply somewhere where you can get a payday loan from a lender. Kallyss works with online payday lenders but there are also lenders in traditional high-street banks.

High-street bank lenders are more likely to reject a payday loan application; this can be on the grounds of poor credit history, financial background or even the repayment structure that you have suggested.

Therefore, it is often much easier and quicker to go through an online payday loan store. Kallyss can put you in touch with a lender within 24 hours and have the money in your bank account the next working day.

Online payday loan stores will not reject applicants on the grounds of poor credit history or financial background as long as the applicant can prove that they will be able to pay back the loan in the agreed upon time.

How Does a Payday Loan Store Work?

A payday loan lender will put the money into your bank account as soon as they have accepted your application and your lending terms and conditions.

It is this lender who you will have to repay when the payments are due, whether you are paying in small instalments or in one lump sum is up to you and the terms that you agree with the lender.

If you do not repay your loan on time then the payday loan store has the ability to punish you, this can be simply making your credit score go lower or in more severe and expensive cases, you may have to go to court if you do not repay your loan on time.

It is always important, therefore, to make sure you know how and when you will be repaying the payday loan store so that you do not run into any trouble with your payday loan.

What Interest Rates Do Payday Loan Stores Charge?

The interest rate or APR for payday loans is usually much higher than any other type of loan. This is because payday loans are designed to be short term and you should only be borrowing small amounts of money.

The typical APR for a payday loan can be in the range of 300 – 500% depending on your financial background and the payday loan store that you use.

Payday loan stores see payday loans as high risk due to the fact that some people fail to repay their payday loan on time and therefore they need to have high interest rates in case the money does not come back in time.

Should I Get an In-Store Payday Loan?

A payday loan is right for you if you are looking for a short money fix. For example, if you are short of money this month but you have just incurred a veterinary bill that you were not expecting then a payday loan might be right for you.

However payday loans should not be used for frivolous spending such as shopping on unnecessary items or things that are not an emergency and do not need to be bought this month.

In an ideal world, you will receive your monthly payday and at that point you will be able to repay the loan that you have taken out. If you think that you will need longer than 12 weeks to repay your loan then it may be worth looking at different loan types or alternatives to payday loans.

It is important to consider a few factors before getting a payday loan. You must know how and when you will be able to pay back the loan otherwise you could end up facing extra charges and interest making the loan much more expensive than you first anticipated.

Moreover, make sure you have looked at alternatives for payday loans such as borrowing from family and friends if you need a more relaxed and longer repayment structure.