Payday Loan FAQ

What is a payday loan?

A payday loan is a safe and convenient short-term loan, created to allow borrowers to stretch their monthly budgets when the unexpected happens. Payday loans are unsecured, usually for small amounts of cash, and typically require only a few easy steps for fast results. Most payday lenders provide their payday loan services online or in a neighborhood brick-and-mortar store. In either case, a payday advance loan can be a simple, responsible solution for a temporary budget shortfall.

The payday loan application process, whether online or in-store, is typically uncomplicated. The requirements to qualify, when compared to other types of loans, are relatively basic: proof of income, approved proof of identity, and an active checking account. Qualifications for a payday loan are similar for online and in-store transactions.

Payday lenders provide payday loans quickly to qualified borrowers, all for a clearly stated, up front fee. Payday cash loan borrowers are never hit with hidden charges or interest rates; all rates and fees are clearly stated in the amount the borrower agrees to repay.

How can you determine if a payday advance loan is the right choice? First, clearly assess the financial situation. Payday loans are intended as an occasional, short-term solution and not as a source of ongoing help. If you need more help than a payday loan can provide, consider talking to a professional credit counselor.

If your cash flow problem is a short-term result of unexpected expenses, fill out an application with your chosen payday lender to find out how much you qualify to borrow, plus the fees. Only borrow the amount that you’re certain you can repay on time. If you’re able to budget the prompt repayment of your loan into your next pay period, you’re taking the responsible approach to payday loans.

When used responsibly and as intended, a payday loan works as a good alternative to late fees, credit card debt, and damaged credit scores. For short-term cash crunches, payday advance loans can be a smart solution.