A payday loan is a short-term, unsecured loan that is typically due on the borrower's next payday. These loans are often used to cover unexpected expenses or emergencies.
To obtain a payday loan, the borrower typically writes a post-dated check for the amount of the loan plus fees, or gives the lender permission to withdraw the funds electronically from their bank account on their next payday. The loan is typically due in full on the borrower's next payday.
The requirements to get a payday loan may vary by lender, but generally, borrowers must be at least 18 years old, have a steady source of income, and have a bank account. Some lenders may also require proof of employment or income.
The amount that you can borrow with a payday loan varies depending on the lender and the state in which you live. In most states, payday loans are limited to a maximum of $500 or less.
The fees associated with a payday loan can vary depending on the lender and the state in which you live. Generally, you can expect to pay a fee of between $10 and $30 for every $100 that you borrow. These fees can add up quickly, so it's important to read the terms and conditions carefully before taking out a payday loan.