Suppose your car breaks down, but you are in between paychecks, and cannot afford the expense. Or perhaps your beloved pet gets sick, but you cannot fit the vet bills into your budget until you get paid on Friday. Payday loans are available to cover situations like these and many others.

What Are Payday Loans?

Payday loans are actually short term cash advances on your actual paycheck. The grace period for these type of loans is generally two weeks, or until your next pay day. However, this time period can often be extended with an added interest charge, and in some instances, additional late fees are added. The actual terms of payday loans vary depending on the individual lending institution and length of the loan.

There are normally at least two common requirements one must usually meet in order to qualify for these type of cash advance loans. First, you must have verifiable employment. In most cases paycheck stubs are requested, and in some cases W-2's, or copies of income tax returns are requested. Also, it is usually necessary to have a bank account with a checking. When you are getting this type of loan, basically you are writing a post dated check to the lending institution, so that is why a checking account is necessary.

How Do Pay Loans Work?

The process of getting payday loans is generally fairly simple. If you apply in person, you can normally be approved and get the cash you need that very same day, sometimes within minutes. Upon verifying your income information, as well as your bank account information, it will be determined whether or not your loan needs can be met. Once the information you provide is verified, you will sign an agreement to repay the principal with interest, as well as any other associated fees. The amount of time you will have to repay the loan will be determined during the application process.

You can also apply for payday loans via the internet. If you chose this method, you may be required to fax your income verification, as well as your bank statement, to the lending institution. Once you loan is approved, the requested loan amount will automatically be transfered into your checking account in a matter of days. While many people find applying online to be more convenient, many others prefer the face to face method of application.

Can I Qualify Despite Bad Credit?

Most of the time there is no credit check associated with applying for payday loans. Your job and your bank account is your credit. If you can prove you have steady income, as well as an active checking account, most often you will qualify for these loans. When you agree to repay this type of loan, it will come directly out of your bank account on a predetermined date. Because there are no credit checks associated with most payday loans, interest rates are considerably higher.

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About The Author

John Mussi is the founder of Direct Online Loans who help homeowners find the best available loans via the http://www.directonlineloans.co.uk website.