(LoanSafe.org) — Have bad credit? Don’t have a credit card? These are often two major problems for people who need quick cash in emergency situations. In an emergency situation like an unexpected hospital bill, you will need cash fast. For a lot of people, these emergency situations can happen before we get our paychecks. In these situations many people tend to pursue payday loans.

Payday loans are short term emergency loans that are repaid when you get your next paycheck. No credit check is needed for these types of short term loans, and you can get the cash you need instantly in most cases. However, the downside to these loans is the extremely high interest rate that comes along with them.

Please be very wary of what you are getting into and make sure you fully understand the amount that is owed and when the loan is due. Failure to repay the loan on time can result in major fees and penalties that can easily double if not triple the amount borrowed.

Anyone who meets the few common requirements can get these loans, and if you can deal with the high interest, then this loan may be a good temporary solution. One can obtain a payday loan quite quickly by applying with an online payday lender or visiting a local payday loan office. The application process is typically very easy because you don’t have to have a credit check conducted, and there are no complicated requirements.

You don’t need much for a payday loan. What you do need is:

-A job (typically you will be required to have had that job for 6 months)
-A paycheck that will cover at least the initial loan amount
-A valid checking account
-The ability to take direct deposits and withdrawals

Different payday lenders might only require that you have that job. Others may require that you’ve had the job for a specific amount of time (generally 6 months or more). Your paycheck must be able to cover the principal loan amount, which is deposited into your account upon approval. Many payday lenders will provide funding within 24 hours of getting approved. While certain lenders may charge initial fees, many do not charge a dime until the loan is due. It is possible to extend payday loans, but this could end in more fees accumulating.

These short term loans are really only meant for those who have experienced an emergency and cannot wait for their next paycheck. Interest differs wherever you go, but it’s well known that interest is very high for payday loans. If your income is barely suffice to cover the initial loan balance, then you will probably be paying the interest back long after you’ve already paid the initial loan. The point of a payday loan is more or less defeated by the idea of you paying so much extra then the loan itself in interest. Even though you don’t need good credit to get these loans, if you default on the payments it may affect your credit rating depending on the lender and state you are located.

In order to avoid needing the option of payday loans, try starting practical saving techniques. These could include:

-Building up emergency cash funds in savings accounts
-Tucking a dollar a day into savings
-Negotiating payment plans with your existing lenders
-Using overdraft protection plans on your checking account
-Practicing credit building techniques daily
-Using your credit card only for emergencies

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