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Sometimes referred to as a paycheck advance
payday loans are short-term loans that are designed to provide the borrower with immediate cash in exchange for a promise to repay the loan on your next payday. Typically
these types of loans do not require a credit check and are
therefore
ideal for many who have little or poor credit. What is more important
however
is a steady job with a guaranteed paycheck. As such
payday loans are not usually approved for individuals who are self-employed or who have unpredictable/sporadic work schedules.

If you are approved for a payday loan
you will most likely be given cash in exchange for your postdated check that reflects the amount of the original loan plus interest. Typically
the lender will cash the check on the day of the applicant’s next payday unless other arrangements are made. An example would be if the payday lender were to offer the borrower an opportunity to refinance the loan instead of having their check cashed. For an additional fee and interest
many payday lenders will grant this option for their customers.

While some national corporations offer payday loans
the majority of lenders are locally-owned companies. In addition to simply running short on cash
there are many reasons why an individual may need to request payday loans. Among them
unexpected car or home repairs and doctor visits. Quite often
it is difficult to survive from one paycheck to the next and
when life happens
many find that payday loans are their only answer for quick cash. After being granted a payday loan
the money can be used to help pay for groceries
gasoline
electricity or other utilities
insurance or other necessities.

As mentioned previously
the process of requesting payday loans is quite simple. All that is needed is copies of past paychecks or stubs
proof of current employment
wages and the applicant’s length of employment. All of this information is important in determining the probability of an individual being able to repay the loan as agreed. Because a credit check is not commonly performed
verification of employment is the best verifiable resource for payday lenders. In addition to the aforementioned documents
most payday lenders require some form of photo identification and a checking account with one check made payable to the payday lender.

If at all possible
individuals who accept payday loans are urged to repay them in full as soon as possible. Otherwise
fees and additional interest will continue to accrue until the balance due has increased significantly beyond the original loan amount.