Payday loans are great alternatives to paying late fees or ruining your credit because of a delinquent financial obligation. Still, if you are going through a financial hardship, you may not have a good understanding of payday loans and how they can help you. Here are a few questions and answers about payday loans:

What is a payday loan?

A payday loan is a special type of loan that is used to help cover low-level expenses or to help a client meet financial needs between paychecks. They are best used for financial situations that are not long-term.

Payday loans are also called cash advances.

Are there regulations that govern payday loans?

Payday loans, like other types of loans, are governed by federal and state regulations.

Is the credit score of the borrower checked before a payday advance loan can be offered?

The approval process for a payday loan is different from that of some other types of long-term lending solutions. No credit check is needed for a recipient to be approved for a loan. However, a lender may ask other credit-worthy questions, such as inquiries about your employment history and your income level. In addition, you may be required to have a bank account.

How long does it take for a payday loan to be approved?

A payday loan can usually be approved within a few minutes. Once the approval is in place, the associated fees and due date of the loan are reviewed with the borrower. The money is often given to the borrower in cash.

How are payday loan payments usually arranged?

Payday loans are usually not paid back in incremental installments. Instead, the full amount of the loan is generally due on the due date. However, many payday lenders give customers the ability to roll over their loan by renewing the advance and paying an additional fee.

If a loan is paid off early, is a portion of the fee reimbursed?

If a borrower chooses to pay the loan amount in full before the due date of the loan, a portion of the fee may be returned to him or her.

How much do pay day loans cost?

Payday loans usually incur a fee of $15 to $30 for every $100 borrowed.

What is the typical term for a payday loan?

The average term for a payday loan is approximately two weeks.

If you are interested in receiving a payday loan, contact a payday lender in your area.