Payday loans: What are they and how to get one

Payday loans: What are they and how to get one

A payday loan is a type of short-term borrowing where a lender will extend high interest credit based on one's income.

For a payday loan, you will need to provide proof of identification, income and bank account details. 

A lender will confirm your income and deliver cash via transaction immediately. 

In exchange, you will  have to give a signed check or permission to electronically withdraw money from your  bank account. 

The loan is due on  your next payday — this is either in two weeks  or a month.

If you don't return it, the lender will run the  check or make the withdrawal for the loan amount with interest. 

The cost of a loan from the lender is usually $10 to $30 for every $100 borrowed. 

If the loan is not repaid in full, a fee will be added and the cycle will repeat.