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.