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Payday loans have become popular because of the increased need for emergeny cash and the fact that they are relatively easy to obtain. These short-terms loans, which are often payable within 10 to 14 days, may even be obtained by people with poor credit scores. We've already covered 5 of the most Frequently asked questions in our main area, buts lets cover a few more:

What are the qualifications for a payday loan?

Different companies will have different requirements, but it is common for them to require that you have been employed for at least six months. It is also usual for them to require that your income should not be lower than a certain amount, which is usually $1,000 per month. You will also need to have an active checking account.

Will my poor credit history prevent me from getting a payday loan?

Some payday loan companies will run a credit check but most will not. Thus, your credit score usually has no effect on your qualification of the loan. The reason is that usually, you are required to issue a post-dated cheque for the loan amount plus charges and fees. The company simply encashes your cheque when the loan is due.

How long is the loan processing time?

This will vary depending on the company because of different policies. If they require you to fax copies of some documents, the process may take longer but it is common for the amount to be deposited into your account within 24 hours. Some companies may claim that it will only take about a minute to approve your loan. However, the actual deposit may take one day.

What are the possible uses for a payday loan?

The loan company does not really care where you will use the money. However, payday loans are designed for emergency cash flow needs, such as when the car breaks down or somebody in the family gets sick.

Is it possible to repay the payday loan before it is due?

This is possible, except that some companies may charge a certain prepayment fee. Nevertheless, you can still save some money by paying the loan early because of the reduction in interest charges.

How often can I apply for a payday loan?

Payday loan companies have no restriction on how many times you want to apply for it. However, this is not advisable because it could get you into an endless cycle of debt.

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