There are many people out there struggling to pay their bills. Times are tough and many people need a little bit of money to pay the bills until the next paycheck comes in. With few options, it can be tough for those in need to access money to help alleviate financial burdens. Due to poor credit, many are not eligible for credit cards or other small loans through a bank. However, there is an option out there for anyone with poor credit in the form of a payday loan but, do you know how a payday loan works?.

Payday loans are simple and easy to obtain. There are only a few requirements and the money can usually be accessed within hours of approval. In order to apply, one must simply provide proof of identity and income. Even those with poor or no credit can access a loan as long as they have a source of income. In order to apply, simply bring a recent pay stub and a representative can determine how much money one may be eligible for. During the interview, those applying will also be asked to provide proof of identity in the form of a driver’s license, state-issued identification card, etc.

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At this time, the terms of the loan will be disclosed and discussed, including the interest rate and the repayment dates. Loans must usually be repaid within one month, which is enough time to reach the next paycheck and get back on your feet. Interest rates are reasonable and repayment terms can be negotiated depending on the applicant’s credit, but most payday loans must be repaid within one month. Once approved, the money can be transferred into the bank account almost immediately. Payday loans offer an affordable way to access a loan for those needing just a little extra money to get by until payday.