An account on the details involved in pay day loans

Pay day loans can be defined as a short loan which is given to a person in the time of his financial crisis before the arrival of his next salary. Pay day loans are more commonly termed as cash advances given to a worker or an employer when he needs it to meet up an emergency situation but he has not financial support.

It is a type of unsecured loan which is given by the creditor which is supposed to be repaid by the debtors when his next month’s paycheck arrives. The creditor will check out the past credit history of the person asking for cash advances and will see his employment status and income or previous pay checks then only after getting fully satisfied that he can repay his loan he will give him a loan, charged at a much higher interest rate than the rate of interest of usual secured loans.