Payday loan is invariably called cash advance loan, payday advance loan or emergency cash loan. It is a small, short term loan that normally matures in 14 days. Coincidentally, its due date is timed with your payday, which is on the 15th 30th of the month. There are payday loans that require a post dated check to cover it. However, payday loan is generally categorized as a clean loan that requires no collateral. But, since it is without security, the interest charges are very high. They are poles apart when compared to the regular interest rates afforded to traditional loans. The amount of the loan under this credit starts at $100 and its maximum is $1,000. This minimum and maximum loan amounts are also dependent on the State that regulates its operation. In the United States, there are only 37 States that allowed its operation. The rest have declared it illegal and made its operation less feasible and considered it as a loan shark.

This payday loan is specifically targeted to people with urgent cash requirements. Those who are encountering difficulties in availing credit due to their poor credit scores are their captured market. If you are in dire financial crisis and your credit rating is not good, then you can run to these payday loan lenders and you can find relief. They are considered life savers to these individuals. But, as proven by a study, many of these borrowers have resorted to several roll-overs as they became victims to the so called debt cycle trap.