Payday loans, also called cash advances, provide people with quick cash as they need it between paychecks. People who have bad credit or are faced with unexpected expenses often rely on these loans to help get them through until they receive their next paycheck. Here is some basic information about payday loans and how they can help you:

What is a payday loan? A payday loan is basically an advance on your paycheck from an outside source. These short-term loans give you the cash you need to help you make it until your next payday. Oftentimes, people apply for payday loans because of unexpected expenses, like sudden car trouble or home repairs.

How do payday loans work? A payday loan works just like any other loan – a lender loans you a certain amount of money, and you’re required to pay it back by a certain time for a pre-determined fee.

How much do payday loans cost? The costs of obtaining payday loans vary from lender to lender, but most typically run between $15 and $30 per $100 loaned. There are instances when the fee will be less or more depending on the type of payday loan you apply for.

How can you apply for a payday loan? Applying for a payday loan is easy – all you have to do is go to loan office or get online to find a lender on the web. In either case, you’ll have to fill out an application and be prepared to provide some personal and financial information. Most lenders require that you be at least 18 years old, and have a checking account, a steady job, and a minimum monthly income of at least $1,000. They’ll probably also want your social security number and copies of pay stubs and bank statements. After you’ve applied, you simply wait for your request to be approved. Once approved, you can access your money in as little as 24 hours, and even the same day in some cases.

What are the advantages and disadvantages of payday loans? Payday loans provide an excellent means for cash-strapped people to get the money they need, and fast. With little or no hassle, people can have several hundred dollars at their disposal in a small amount of time with a payday loan. Cash advances also come without the long-term commitment that you’ll find with traditional bank loans – as long as you are responsible and pay the lenders back promptly. Another advantage to payday loans is that they very rarely exceed more than $2,500, meaning that people won’t be as tempted to borrow more than they need. Finally, payday loans can also be less expensive than bounced checks, and can actually end up saving you money in the end. The primary disadvantage of a payday loan is that they come with relatively high fees, with APRs translating between 390% to 780%.

Now that you have this information about payday loans, you can decide if this is an option you’d like to pursue when you find yourself in need of quick cash. With responsible borrowing, payday loans can prove to be a reliable backup plan for those moments when you don’t have the cash you need.