A payday loan as the name goes is also called payday check or payday advance. It is a loan that is supposed to cover a borrower's expense for a short term until his or her next payday.
How it works:
Online payday loan works by first filling online pre-approval application form. Mostly, they don't consider your credit history even if you have bad credit you can still apply.
There are three steps in applying for payday loan:
1) Choose a payday loan lender: This is actually the most important part of the payday loan process. There are many cash advance lenders out there, what you have to do is to choose the one that their terms, conditions and fees are suitable to you.
2) Fill the application form: It takes a few minutes to fill the payday loan online application form. Other personal information like how much you want to borrow as well as when your next payday is required. Some cash advance lenders require your recent bank statement and pay stub.
3) Receive your loan: once your application is approved, the loan will be sent directly to your bank account making it available for immediate use.
4) Paying back the loan: The loan is required to be paid back on the day specified on the application. This can be done in various ways depending on the options specified by the lender. Should you want to extend the current cash advance loan (known as "rolling over" the loan), you can contact your lender for instructions.
Be cautious that when you receive a payday loan, you are using it for the shortest amount of time to avoid excess fee.