The first and foremost tip for anyone contemplating applying for an online payday loan is the same rule that governs all commercial transactions, "caveat emptor", let the buyer beware. It is very, very easy to set up a website and proclaim it to be online cash advance application center. Always check out the company with a web search and via the online better business bureau. Do not let a company's appearance on websites such as ripoff report or other consumer rant and rage centers completely deter you, though.

Unless your bank is really, really small you will probably find online complaints about them as well. No company, no matter what business they are in or what size they are can always please everyone all the time. Just remember that online payday loan companies are in business to make a profit. They profit by borrowing money from commercial creditors then lending it back to you at a higher interest rate to compensate for their risks involved in a short term loan as well as generate revenue for their expenses and a reasonable profit.

The next step is you have to own a checking account with direct deposit of your payroll check or other source of regular income. This is how online cash advance loans are paid back. The lending company will electronically debit your checking account on the day of your next direct deposit. Some online cash advance companies will just debit your checking account for the finance charge only, in effect refinancing the loan. Avoid this option at all costs. If your simple interest rate is 10%, say $50.00 on a $500.00 loan, the refinancing of this loan turns it into a 20% loan. Make certain you know how much money will be taken from your checking account and when it will be debited.

Since online payday loans are paid back within 2-4 weeks, you have to make concrete realistic plans on how to repay this loan. You cannot count on repayment from your regular income or you wouldn't need the loan in the first place. Look around your home and find a few underused items and sell them. Lots of newspaper companies have online sites with online auctions or you can use Ebay.com. Talk to your employer about extra hours or apply at a temporary employment agency. Start tracking where your money goes and see if you can cut back on frivolous, unnecessary expenses. Most people will be surprised at how much and where they spend money. When I had a very expensive illness, I had to do this and was embarrassed at how foolish some of my spending habits had become. Remember, no one has ever complained about having too much walking around money.

Now, for a quick review of the requirements for an online payday advance:

1. A checking account with direct deposit.
2. A thorough knowledge of the terms of the loan and the lender.
3. a realistic workable plan to repay the loan asap.