We all need a little extra cash from time to time to cover an expense that has occurred quite by accident but that doesn’t mean that the only option available is acquiring an unsecured personal loan. However, there is an alternative to a personal loan called a payday loan which is much easier to arrange these days even if you do not have a checking account at a bank. By understanding exactly how a payday loan works, it is easy to see why this type of loan is such a popular form of personal loan and why so many people opt for it today.

You may have received some unexpected bill for repairs to your car and need to pay it as soon as possible. In cases like this, you don’t need a large loan and you can repay the amount as soon as your paycheck comes in. This is where the payday loan online comes in. The process works by a lender arranging for a small sum of money never usually over one thousand dollars, to be made available and to be reclaimed when you are paid less any interest due.

Fortunately the internet has helped this payday loan service and instead of contacting the local lenders, it is now a simple matter of finding a payday loan lender online and making your application there. The online application should only take a matter of minutes and the funds can be transferred to your bank account directly.

This service has opened up to many other lenders now when only a few years ago there was little chance of getting a payday loan if you did not have a checking account as lenders wanted to ensure their loan to you would be safely repaid as soon as you were.

Fortunately today, just a pay statement or a savings account is enough to secure this type of short term loan and some lenders even ignore the fact you may have a poor credit history. Many just accept proof that the person is actually employed and receives pay regularly. If the situation arises again where you require some cash short term in the form of a payday cash advance you will know what to do.

It doesn’t take much now to find a payday loan lender who is prepared to lend the money for a short period and all you need to do is provide proof of income or a savings account. This type of loan is useful but should be used sparingly as it can be very costly and some people fall into the trap of using it on a regular basis. It is easy to forget that it doesn’t take much to start relying on these types of loans for the wrong reasons; you need to improve your financial position rather than continue to use this facility as a crutch which will eventually cause more problems than it solves.