Payday loans are loans that taken out to cover a short fall in funds between two pay checks. For example, two weeks away from your next pay check you may find that you have an emergency funding requirement and with no savings to draw upon you are short of options.
Payday lenders help plug this shortfall in money and are predominantly there to serve those that for whatever reason have a bad credit history.
Payday lenders do not require a credit check 
when they lend money which speeds up dramatically the loan application and approval process.
What they do require before approving fast cash advance payday loans is proof that you hold down a full time job as well as proof of identity.
Payday lenders will try and protect themselves from bad credit borrowers defaulting through a number of ways:
Payday loans are fine of you know you can pay back on time
First and foremost, the size of the cash advance loan is dictated by the fact there is no credit check. Payday loans range from between $200 and $2000.
This compares with unsecured lending by prime lenders that do carry out a credit check and can sometimes lend up to $50,000 on an unsecured basis.
Payday lenders rarely lend for periods of more than a few months as opposed to a few years that can be the norm with
prime borrowing.
Finally, the interest rate charged by payday lenders is much higher than the interest rate charged by prime lenders such as banks. If payment of the instant short term loan is not made on time the interest rate then increases dramatically with huge compounding interest rates.
Payday lenders dominate the online loans market now and if you have emergency funding requirements in between paydays and are sure that you can pay back the fast cash advance payday loans on time, then it is a viable option.
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