How Payday Loans Work
Payday loans are short-term loans due on your next payday, normally within two weeks. You either give the lender a check to be cashed on the due date or authorize an electronic transfer from your checking account. The income from your job, is what provides security for the loan and is the reason you can get payday loans with bad credit. For more requirement specifics see Bad Credit Payday Loans.

Unlike typical loans, the application for payday loans is simple. You fill out a short form and supply a copy of your paystub or some way to verify your income. You'll also be asked for a copy of the most recent bank statement of your checking account. But no credit check is made because no credit is required. So even with the worst credit, you can still get a payday loan.

Your Payday Loan Rights
The law gives you the right to know exactly what fees are involved and the annual percentage interest rate(APR) for payday loans. Because these loans are riskier for lenders than regular loans, the interest rates are higher. But at the same time you will only pay the interest for a short period. And of course, payday loans should only be used for emergency money and not a frequent source of cash.

How Payday Loan Rollovers Work
If you find you're unable to repay the loan on its due date, most payday lenders will allow the loan to be extended. However, either the original loan fee or the fee plus some of the loan principal is usually required to be paid on the due date. But unlike typical bank loans, there aren't prepayment penalties.