Essentially, payday loans are emergency funds that borrowers are typically required to repay to lenders with their next paycheck. Payday loans do not need collateral of any kind, a good credit score, or a legal employment history like conventional bank loans do.
A payday loan, in some states, is also referred to as payday advance, which is a small loan typically repaid within a single pay period but not more than one month. It is for borrowers seeking some money to cover their immediate or emergency need for funds. They are often paid back on the next payday. Payday loans are fee-based loans. You will know the exact amount of your loan fee before accepting your loan offer. The loan and fees are to be paid in full when the loan is due.
There are many situations that can put someone or a family in a tough money spot. And most people cannot use traditional sources like bank loans for these situations even if they could qualify. Traditional loans require good credit and take weeks or more to process. No help in a tough money crunch when you need help now!