Everything You Need to Know About Payday Loans

Payday Loans: A Guide

You have a job, and you work hard for your paycheck. Unfortunately, you might be one of the 12 million Americans who find that payday just can’t get here fast enough. According to MarketWatch, 44% of people said their expenses exceeded their income last year. A full 60% of Americans wouldn’t be able to cover a $1,000 emergency expense out of their savings, according to CNBC.

That means that you’re not alone if you’re facing financial struggles, even if you have a decent job. When you need money to pay for unexpected bills or other expenses, you might want to consider taking out a payday loan.

For millions of people across the U.S., payday loans can be a lifesaver when you’re facing financial hardship. You can easily borrow the money you need to pay for expenses (emergencies, credit card bills, utility bills, food, and more) before your paycheck arrives. You can borrow money for a short period of time (until your next payday) and can avoid costly late fees and other penalties that you might incur due to missed or late payments.

This article will help answer some vital questions about payday loans, including how they can help, how to tell if you qualify, and what interest rates you might expect when you take out a loan. Read more to learn the answers to these questions and more.

What is a Payday Loan?

Payday loans are short-term loans designed to help you get by until your next paycheck is issued. While the term of the loan will vary depending on the lender, most payday loan terms are for two weeks or until the borrower’s next payday. Some payday loans have terms of 30 or 45 days. For borrowers who need it, longer-term installment loans might be available, depending on the lender.

To qualify for a payday loan, you will typically need:

  • To be at least 18 years old
  • Have an active bank account
  • Identification card
  • Proof of income from your employer (usually a paystub)
Fortunately, for many borrowers, the process of getting the cash you need is simple and extremely fast. You could get the money you need the same day or the next day in many instances.

The Benefits of Taking Out a Payday Loan

As mentioned above, payday loans have significant advantages over other types of loans or the use of credit cards. The three main benefits of taking out a payday loan are:
  • Speed: When you need an advance on your paycheck, you typically want to get the cash right away. Most lenders will be able to process your request quickly and issue your payment immediately, so you’ll have access to the funds as soon as possible
  • Convenience: Payday loans can often be secured online or at an easily-accessible brick-and-mortar store. You don’t have to deal with the hassle of setting up an appointment with a loan officer and visiting a bank to obtain a loan. Also, unlike traditional loans that are usually issued for a specific purpose (home down payment, vehicle purchase, etc.), you can use the money you get from your payday loan for whatever you need it for. If you need to repair your car, pay a credit card bill, pay your cable or electricity bill, or whatever the situation calls for, you’ll get to decide where your money goes.
  • Fewer requirements: As long as you are at least 18 years old and have a steady job and a reliable source of income, you’ll likely qualify for a payday loan. While traditional loans require collateral and proof of good credit, payday lenders often do not. They will usually only need to see verifiable proof of income to issue you a loan.

Frequently Asked Questions About Payday Loans

If you’re considering taking out a payday loan but have never done so in the past, you likely have many questions about the process, whether you qualify, and how quickly you could get your money. We’ve provided the answers to these essential questions below:

Typically, lenders will need to verify your credit in some form or fashion. While some will run a traditional credit check, others might examine other factors like your income, work history, and length of employment with your current company to determine your ability to repay.

We have seen a wide variety of criteria from the lenders we work with, so don’t let concerns about a credit check stop you from exploring your options with us.

Yes, even if you have bad or poor credit, or if you have no credit history at all, you could still qualify for a payday loan. Many of the lenders we work with will use other criteria to gauge your ability to repay the loan outside of the traditional credit bureaus. We’ll work with you to find the right lender for your situation and help you get the loan you need right away.

The application process is simple and straightforward, and you can usually get an approval within minutes. Once you’ve been approved, we’ll connect you with a lender who can complete the process and issue your payment right away.

While most people with a steady income will qualify for a payday loan, everyone’s financial situation is different, so there could be circumstances that would prevent you from being able to get a loan. In general, borrowers might not qualify for a payday loan if:

  • You already have an outstanding loan that hasn’t been repaid
  • You do not make enough money (typically, lenders will want to see at least $500 in monthly income)
  • You have not been employed long enough, or your bank account was opened too recently
  • You are active-duty military and are not allowed to borrow from a payday lender
  • You have had a recent bankruptcy or have recently bounced checks


Again, we work with a large network of lenders, so the criteria for approval will vary. It’s a good idea to complete your application and let us help you find a lender that is right for you!

Because of the extremely short borrowing term, borrowers usually pay a fee for taking out the loan instead of paying interest over time. However, many lenders will express their fees in the form of an Annual Percentage Rate (APR) like a traditional loan, to give borrowers some context.

The finance fee for borrowing $100 will typically range from $15-$35, depending on the lender, according to the Consumer Financial Protection Bureau. This translates to an APR of 391% – 851%. While this might seem high at face value, consider the exorbitant costs associated with late fees for missed payments, which often have $20 to $40 fees tacked onto them, which means their APRs can range from 521% – 1,173% APR on that same $100.

As we mentioned above, your payday loan could be used for any expenses you need to cover while you wait for your next paycheck to arrive. Our customers have been relieved to get quick cash for expenses like:
  • Rent or mortgage payments
  • Credit card bills
  • Utility bills
  • Medical bills or expenses
  • Vehicle repairs
  • Food and other living expenses

Getting a payday loan is simple, fast, and painless, and can help you avoid the steeper penalties that come with missing a payment deadline.

Need a Payday Loan? Apply Today!

At Fast Lending Approval, we are not a lender, but we work with a large number of reputable lenders who are ready to help you get the money you need right away. We’ll help connect you to the right lender who can help you get a short-term loan to pay your bills and support yourself and your family until payday comes. Apply online now and get your loan today!

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If you are a little short until the next payday then apply now for a cash advance up to $2000. No need to wait, you can apply 24/7, whenever the need arises.

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