With the economic downturn, more individuals are living paycheck to paycheck. What happens when someone has spent their last dollar on the gas bill only to step outside and find their car won’t start? There was a time when that person could call up the bank and get a signature loan. That time has passed. Banks are making it more and more difficult for the average person to get a loan. Another type of loan has made the way into America’s mainstream, this is the payday advance.

Payday Loan Basics

These short-term loans are generally made without a credit check but it is necessary to provide proof of employment to determine eligibility for payday loans. Usually the income requirements are that the applicant has been employed for at least six months, makes at least $1,000 per month and is paid via direct deposit. Since there is no credit check, this type of loan is much easier for those with less than perfect credit to get the money they need, when they need it. This type of loan usually has a high interest rate. The repayment is taken directly out of the checking account provided at the time of the loan. The due date would be the individual’s next payday.