Why on earth would anyone use payday loans? That's easy -- a payday loan could be used to deal with a financial emergency or unexpected expense that one needs to meet right now.
Where would you get one? Well, there are payday loan companies in many towns and cities, but you can also seek a variety of payday loans online.
The standard for receiving a payday loan varies from lender to lender, of course, but there are some common standards. Generally, you need to have a bank account and a verifiable source of income before getting one of these small short term loans. Of course, if your income is limited you might find yourself only being approved for a very small amount of money.
Typically, those seeking payday loans are dealing with a time critical situation in which they need money right now. For example, there might be an overdue credit card payment, a late utility bill or some other debt that needs immediate payment. A payday loan of -- to be repaid within a few days or a couple weeks -- might make all the difference. Best of all, decisions on such loans are often made few hours.
To get a payday loan, you generally need to complete an application at a brick-and-mortar location or to fill out an application online. You will usually get a response within two days -- and often on the same day.
When it comes right down to it, a payday loan is really a cash advance on your future earnings. You get that money now, and will repay it out of the next paycheck. For example, if you get $500 today to pay your credit card, you are expected to make your payment back to the payroll loan company within a short span after you are next paid. That means the size of your loan will be tied directly to what you make each pay period.
Of course, it is always important that you be aware of what these loans are going to cost you. The fee for a $300 loan and one for a $1000 loan will be different. In effect, you are taking out a high-interest short term loan to meet an immediate need. Knowing that cost will help you determine if it is the best course of action for you, or whether you need to take a different action. And, of course, if you find yourself taking out such loans frequently, there are bigger issues to deal with.