Complete this checklist before applying for any payday loan.
If you are considering a payday loan, work through these steps first. You may discover you do not need one, or you will be better prepared to minimize cost and protect your information.
Before you apply
1. Map your cash flow
Use Balance On Hand to see exactly when bills are due and when income arrives. Identify the exact dollar amount of the gap and how long it lasts.
2. Contact your creditor first
Call the company you owe. Ask about payment extensions, hardship plans, or late-fee waivers. A $25 late fee is almost always cheaper than a $60 payday loan fee.
3. Check for free alternatives
Call 211 for local assistance. Check if your employer offers paycheck advances. Ask your credit union about PALs. Full list of alternatives →
4. Calculate the total cost
Ask: what is the total dollar amount I will repay? If you borrow $400 at $15/$100, you repay $460. If you roll over once, it is $520. Understand fees →
5. Verify the lender is licensed
Check your state’s financial regulator website. If the lender is not licensed in your state, they may not follow your state’s fee caps or consumer protections. State law
6. Read the privacy policy
Is this a direct lender or a lead generator? If the site says “we are not a lender,” your data will be shared with multiple companies. Privacy risks →
7. Plan your repayment before you borrow
Before signing, use Balance On Hand to project whether you can repay in full on the due date without needing another loan. If you cannot, the loan will likely be rolled over.
8. Borrow only the minimum
Do not borrow more than the exact gap amount you identified in step 1. Every extra dollar costs $0.15+ in fees every two weeks.
If you choose...
If you choose to complete this checklist first:
- You may find a free alternative and avoid borrowing entirely
- You'll know the exact cost before signing
- You can verify the lender is licensed and legitimate
- You'll borrow only what you need and have a repayment plan
If you choose to skip the checklist:
- You may pay $15-$30 per $100 in fees you could have avoided
- You risk borrowing from an unlicensed or predatory lender
- Your personal data may be sold to multiple companies
- You may start a rollover cycle that costs hundreds more than the original loan
Here's what you can do today
- Open Balance On Hand and map your next 30 days of income and bills to find the exact gap.
- Call the creditor you owe and ask about payment extensions, hardship plans, or fee waivers.
- Call 211 or check if your employer offers paycheck advances before borrowing.
- If you still need to borrow, verify the lender is licensed in your state using your state's financial regulator website.
- Borrow only the minimum amount needed to cover the gap you identified.
Before making a financial decision, understand your cash flow.
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