What are Payday Loans?

A payday loan is a type of short-term loan that can help you cover immediate cash needs until you get your next payslip.

You can get a payday loan online or via brick-and-mortar locations. When you don't have a financial cushion in place and you need quick cash, a payday loan might seem like a good solution. However, using a payday loan to get out of debt could be a costly mistake.

Most lenders don't perform a credit check before granting a payday loan.

Typically, they ask the person:

  • to prove they've had a job for the last three months

  • to provide proof of their address, such as a utility bill

  • to provide them with their current account information.

A Payday loan repayment period is usually short and depends on your personal situation: it typically ranges from 14 to 28 days.