If you fall short on cash when faced with emergency circumstances, you are not alone. More than half the people in the United States are currently living from paycheck to paycheck. A minor setback such as a car repair or utility bill can become a major crisis when you don't have money to cover it. A payday loan offers people from every background an opportunity to get the cash they need, when they need it most.

No Credit Check

Because payday loans are extended without a credit check, you can get money if you have poor credit or no credit. Another advantage of no credit checks is getting your loan right away. When you apply for a conventional loan, it often takes days or even weeks to find out if you are approved. With a payday loan, you know how much you qualify for right away and the funds are released within 24 hours.

No Hassles

The application process is simple. Anyone proving they have a steady income and a bank account for at least three months can get a payday loan. Typically, lenders require borrowers to have a minimum monthly income of $1,000. You can easily apply for a loan online or by telephone. Once the lender verifies your income and bank account information, you are approved. The lender will then request you sign an agreement to repay the loan. You may also be asked to provide a postdated check for the amount of the loan plus fees or to agree to an automatic debit from your bank account when the loan becomes due. The money you need is usually deposited into your bank account within 24 hours and you can use the cash for any reason.

Fees and Terms

Most payday lenders offer loans of $50 to $1,000 based on your income. The loan must be repaid on your next payday, which can be one week, two weeks or one month from the date the loan is taken. On that day, the amount borrowed plus fees is deducted from your bank account. Typically, the fee charged for a payday loan is $15 to $25 per $100 borrowed.

Extending the Loan

If your pay check is less than you anticipated and you find yourself unable to repay your payday loan on the designated date, you can request an extension until the following payday so you have peace of mind. An additional fee, however, will be charged to extend the terms.

Benefits

Although payday loans have some critics, they serve an essential function in some situations during today's tough economic times. While the interest rate may be high, the funds are available right away to handle any emergency. From medical bills to car repairs, people can take care of business right away before their problems become more costly. For those who have no savings, no other resources and no credit, a payday loan can potentially turn a crisis around.