A paycheck loan is a short term loan that a borrower can take to cover expenses till the next payday. It is also called as paycheck advance and payday advance. This cash advance usually ranges from $100 to $1500 and is given for a period of 2 weeks or till the next payday.

Traditional Loans Vs Paycheck Loans

Unlike traditional loans, the check loans hardly have any documentation requirements or waiting periods. Moreover, banks and other financial institutions require one to have a good credit history. At times, they also demand collateral. This is not so with paycheck loans. All you need is a steady job, a regular monthly income, to be over 18 years of age, to be a US citizen and have a valid checking account. As your next paycheck is your security, the lender of payday loans does not waste time in approving your loan. Your loan amount is granted and the money is in your account within 24 hours of applying.

What’s more, you can take a payday loan again and again. If you repay on time, the lender offers you a higher loan amount the second or third time and thereafter. You give a post dated check to the lender when you take a payday loan. The lender uses your check to electronically withdraw the principal amount along with the interest fee on your next payday.

Some people feel apprehensive about taking payday loans. There is really no need to worry as these loans offer you cash right when you need it. You don’t have to borrow from friends or pay penalty charges on your unpaid bills. Paycheck loan helps you take care of all your urgent expenses in between paydays.