FAQ
What is a payday loan/advance?
A payday loan is a short term loan usually paid back in two weeks or your next payday. A payday loan is usually used to cover unexpected expenses or to help carry you through until your next payday. It is an alternative to overdraft charges or late fees. *Payday loans should be used for short-term financial needs, not as a long-term financial solution. Customers with credit difficulties should see credit counseling.
Is there a difference between an in-store and online payday loan/advance?
An online application and an in-store request may involve different providers and terms. Check the provider's identity, applicable state requirements and written notices before sharing information. Do not assume an online request is connected with a listed storefront.
Sources: Kentucky statute
What do I need to get a payday loan/advance?
Payday lenders generally require valid identification, proof of income and an active account, and applicants generally must be at least 18. Follow the actual provider's document checklist; these general points do not guarantee eligibility.
Sources: CFPB: application requirements
If I get direct deposit, is my bank statement okay for proof of income?
Ask the provider which income documents it accepts. A bank statement, pay stub or other proof may be treated differently; no current KY Cash Advance document-acceptance policy is established here.
Sources: CFPB: application requirements
What if I don't have a checking account, but I have a savings?
Confirm the provider's account requirements and payment instructions. A check or account authorization may be used for repayment; it should not be confused with pledged collateral.
Sources: CFPBCOLLATERAL · Kentucky statute
What if I don't have checks?
Ask the provider which repayment methods and account documents it accepts before applying. Do not assume that a check-free option is available or that an online application has the same requirements as a storefront.
Sources: CFPB: application requirements
How much money can I borrow?
Kentucky's current statute sets a $600 baseline for total proceeds across open deferred-deposit transactions, with annual adjustments and an $850 ceiling. Confirm the applicable current limit with DFI. This legal limit is not a KY Cash Advance offered amount or an approval; review the actual terms if an offer is made.
Sources: Kentucky statute
Can I use a starter check or counter check?
Ask the provider what payment instruments it accepts and what information must appear on them. Do not assume a starter or counter check will be accepted.
How long do I have to be employed before I can receive a payday loan/advance?
Confirm whether the provider has any employment-history requirement and which sources of income it accepts. No current minimum employment period is established here.
Sources: CFPB: application requirements
How long does my checking account need to be open before I can qualify for a payday loan/advance?
Ask the provider whether an account-age requirement applies and which account documents it needs. Confirm the requirement before applying.
Why is the APR so high?
APR expresses borrowing cost as a yearly rate. A short repayment period can produce a high APR even when the fee is described as a fixed service charge. Compare APR, finance charge, amount received and total repayment before agreeing.
Sources: CFPB: understanding APR
What are the fee rates for my loan?
Kentucky caps the service fee at $15 per $100 of the deferred-deposit check's face amount, prorated, for a period of at least 14 days. The statute also provides a $3 database fee that may be charged to the customer. Review the actual written finance charge, APR and total repayment; these rules are not a current KY Cash Advance fee quote.
Sources: Kentucky statute · Kentucky database fee · Kentucky disclosures
Will my rate ever increase?
Read the finance charge, APR and repayment terms in the actual written agreement. Ask the provider whether any terms can change and which disclosures would apply before accepting an offer.
Sources: Kentucky disclosures
How do I get out of a payday loan/advance?
If repayment will be difficult, contact the lender named in your agreement promptly and ask about lawful options. A repayment plan is not guaranteed. A credit counselor or legal aid attorney may help you review the debt; do not rely on repeat borrowing to clear it.
Sources: CFPB: repayment help
Can I use a debit/credit card to pay back my loan?
Confirm accepted payment methods, any processing time and the payment destination with the lender identified in your agreement.
Can I use a money order to pay back my loan?
Ask the lender identified in your agreement whether money orders are accepted, where to deliver payment and when it will be credited.
Can I pay back just the fee and renew my loan?
Kentucky prohibits fee-based renewal, rollover or consolidation of a deferred-deposit transaction. Review your repayment obligation and ask the lender about lawful options if you cannot pay on time.
Sources: Kentucky statute
Can I pay off my loan early?
Ask the lender named in your agreement for a payoff amount and instructions, including how an early payment affects any charges.
Can I make a partial payment?
Confirm partial-payment handling and any available lawful repayment arrangement with the lender named in your agreement. Do not assume a partial payment changes the due date or satisfies the full obligation.
Sources: CFPB: repayment help
What if I can't repay my loan on the due date?
Contact the lender promptly using the details in your agreement and ask about lawful options. Review any plan in writing. A credit counselor or legal aid attorney may help if the debt remains difficult to manage.
Sources: CFPB: repayment help
What if I change my mind after taking out a payday loan/advance?
Before signing, ask whether cancellation is available, the deadline and the steps required. Keep the applicable terms and contact instructions.
Sources: Kentucky statute · Kentucky disclosures