They are also known as paycheck advances or cash advances and are usually not in large amounts. Typically they are limited to amounts of $1,500 or less.



There has been some controversy about payday loans. There are critics who claim that they are marketed to young people who don't know much about loans and low income people who don't understand monetary issues.

Payday loan lenders have been called loan sharks because they usually charge high interest rates. Loan lenders can charge anywhere from 250% and up. When you compare that to the interest rates of credit cards at about 25%, you can see that payday loans can be risky.

On the other side of the payday loan coin, those who support the industry say that it is a help to people when banks fall short. Supporters say that long term high principal loans are comparable to payday loans. The fees issued when checks bounce or credit card payments are late, can be worse than a payday loan interest rate.

When used responsibly, payday loans improve the well being of families who attain them. These families don't usually take unnecessary loans; they are usually taken for unexpected, urgent financial crises.

If you have determined you need a payday loan and are armed with information to make a smart choice, where do you start? If you know where to look and how to protect yourself, it can be an easy process.

Store Front and Telephone Loans

Store front loans are probably the most common out there. They are easy so they are therefore popular. You speak to someone about the loan you need and you are set up with cash quite quickly. Since you are face to face with the representative you are secure in knowing where your money is coming from.

This can be a bit time consuming though, because as you shop around for the best deal, you will be driving from location to location.

Obviously with the internet and telephones at our fingertips, this can be much simpler. If you don't have a computer easily accessible, just flip through your local yellow pages.

Most representatives are willing to answer all your questions over the phone. Although, if you want to progress with a loan, most lenders do require paperwork to be filled out in person.

Online Lenders

As mentioned earlier, the internet revolution has made our lives very convenient. There are literally thousands of options and varieties of loans. There are opportunities to apply and receive your loan within 24 hours.

If you have a bank account, you can have it transferred there quite quickly as well. Online lenders usually have what you need and can get you what you want quite easily. Sometimes the customer service can be even better than what you might receive at a store front.

Not sure where to look online? Go to your preferred search engine and type in "payday loans". If you prefer to speak to people face to face, this option may not be for you.

Another piece of advice would be to research a company or two that you feel you may choose to process your loan. In your search engine type in the name of the company plus the state, plus scam or bad experiences and see what comes up. It would look something like this, "Company Name+Your State+Scam".

When people have bad experiences with any company, they usually want to tell people about it, either to warn others or simply to vent. Follow your instincts and don't go with the first company you see.

Another way to research good companies in your area is by word of mouth. Talk to people any time you can to find out what their experiences were and where they went. Friends and family are great options for references to good lenders.

Everyone has different needs. There are pro's and con's to either method of obtaining a payday loan. Both methods still provide you the perfect opportunities to get the money you need. Analyze your needs, then take action and get yourself the money you deserve.