A payday loan is often also called a paycheck advance or payday advance. A payday loan is a smaller, short-term loan that is intended to cover a borrower's expenses until his or her next payday. The loans are also sometimes referred to as cash advances.


If you have bad credit and need a payday loan, you can read where to get it in our bad credit payday loan  article.

So, what should you do to get your payday loan, and how does it work?
 
You apply for a loan with the payday loan company that you will repay on your next payday. If it’s two, three or four weeks until your next payday, then you’ll pay it back then. It's as simple as that.

Payday loans require no credit check, but there are other criteria that must be met.

First of all, you have to have a job and naturally, be able to prove it. You may do this by providing copies of your salary statements to the payday loan company.

You also have to prove who you are, by providing your ID.

You will need to have a bank account. This is how your money is going to be sent to you and how you are going to pay it back. Normally, you'll have the money in your account within 24 hours, and it is automatically deducted from your account on the day it is to be paid back. To prove you have an account and to provide the payday loan company with the account number, you simply provide a deposit slip with your application.

There is a payday loan fee that has to be paid. That amount is added to the payback amount when it is deducted from your checking account.

Sometimes you may have to pay interest on the amount as well. 

An important point when it comes to payday loans is to not borrow more than you need and can handle. However, if you do need  an extension to pay back the amount that you have borrowed, this is usually possible, but will typically cost you additional money.

Used with moderation, payday loans can be a good way of coping with a short-term lack of money.