At some point of time, almost everyone faces a financial crisis. Something very important comes up that requires immediate cash. However, if the payday is a few days away then it becomes a problem to arrange the money at such a short notice. Banks do not provide loans for such low amounts of money. Besides, in most cases, they ask the borrower to provide some type of collateral and security. It is here that the advantages of the payday loan become obvious. It is a very simple cash advance that can be obtained easily from a payday loan provider. In fact, the process is so fast that an applicant gets the loan amount within 24 hours of loan application.

This type of loan is available to individuals who are earning their income through salary. The person must be working in a regular job, be a citizen of this country, and be 18 years or over. A checking account is also required where the loan amount is deposited. It is important to know that it is a high interest loan so it should be paid on the first payday and the repayment terms should not be extended. A responsible thing to do with this loan is to take it only to overcome emergency short-term cash requirements and not for regular financial needs.

The ability to obtain payday loans without needing credit to use as a reference, is what makes these loans so popular. Traditional banks and lending agencies base their approval for loans on the credit history and rating applicants have. Not only does this process make it impossible for some people to qualify for this type of loan, it is also time consuming.

Lending agencies which offer loans based on the applicant’s pay check, also provide the approval and cash in a very short period of time. Most of these lenders can approve the application in a matter of minutes and provide the individual with the requested cash before they leave the facility. The amount of money approved will be in keeping with what the person earns in a typical pay period. This could be the earnings for one or two weeks or an entire month. These loans are classified as short term loans because the pay back period usually begins within twenty to thirty days after receiving the loan.