Although payday loans have been around for many years, they have increased in popularity because now they are available on the internet. Years ago, when short term loans were first promoted on the internet, online customers had to rely on a fax machine in order to receive documents, and to sign them before returning them to the lender making their pay day loans. Those days are over now that it’s easier to scan in a signature. No fax machine is necessary to obtain online payday cash advance loans these days.

One big advantage of pay day loans is speed. Normally, you can apply for a loan and receive your money the same or the following day, which is great advantage when you need cash fast. Having the money you need for emergencies can happen in only a few hours, for most customers. Assuming you have a job which provides you with a regular paycheck, and you have a regular bank account, you are in a good position to seek loan approval from a payday loan lender.

Payday cash advance loans offer another advantage in that there’s no credit check involved as part of the application process. This really makes application fast and easy for many more customers to qualify. Short term loans are for emergency purposes only, and that should be thoroughly understood. Pay day loans carry a higher interest rate than installment loans from banks and credit unions because pay day lenders have an entirely different business model. Because there won’t be a credit check or any requirement for collateral, such as a car or a house, the lender shoulders more risk than banks and credit unions. Higher risk is what allows pay day loan lenders to charge higher interest rates and fees.

These popular short term loans are quick and easy, and you can get quick cash without a credit check. That is the business model that works for many people these days. You can get fast cash for emergencies when there are no alternatives, and you can pay it all back on your next pay day.

It’s important to understand that pay day loans are scheduled for repayment by automatic debit on your next pay day. Your loan money is an auto-deposit into your bank account and your repayment is a auto-debit from the account, scheduled for the date of your next paycheck. Make sure you budget for loan repayment out of your next paycheck.