A payday loan is a small, short-term loan that does not require collateral. Payday lenders typically loan money for two week terms and repayment dates are often coordinated with the borrower’s pay cycle. The loans are usually paid back directly from the borrower’s checking account.
Payday Loan Requirements may vary from lender to lender and each State may have different rules, but typically the following requirements need to be met by the borrower:
Payday lenders must disclose the APR and finance charge in writing before a borrower signs for the loan. Payday Loans can be a expensive form of credit, but there are many advantages including convenience, speed, and typically easier to qualify for than other types of loans.
All payday lenders are regulated Federally by the Consumer Financial Protection Bureau (CFPB). Most States also have laws regulating payday loans and payday lenders.