Payday Loan
Candlefocus EditorPayday loans are usually based on the borrower's expected income, and a pay stub or other proof of income may be required when applying. Depending on the state, lenders may also require that the borrower has a working bank account. Borrowers must also provide a government-issued ID or other form of identification.
Because payday loans can have much higher interest rates and fees than other forms of financial assistance, they are generally considered a last resort. Consumer protection laws vary by state, but several states have placed restrictions on payday loans, including limiting the amount a borrower can receive, the length of time the loan can be extended, and the total amount of fees and interest that can be charged.
Payday loans are not for everyone, and the high costs and fees associated with the loan can make them a very expensive option for anyone looking for a financial fix. But for someone who needs fast cash but has exhausted their other options, a payday can be a helpful source of extra cash to tide them over until their next paycheck.