Payday loans are popular short-term cash loans that consumers can borrow when they need emergency cash. If you’re new to payday lending, you probably have some questions about how these loans work. Here are some common questions that new customers have, along with the answers you need to know.

What are payday loans?
Payday loans are small, short-term loans usually borrowed for emergencies between paychecks. Payday loans are similar to payday advances that some employers offer, only they’re provided by a lender instead of an employer. Payday loans are usually good until your next payday, and most consumers borrow between $100 and $500, although some lenders may offer up to $1,500 for emergencies.

What are they used for?
You can use a payday loan for any expense you need extra cash for between paychecks. Some common uses include car repairs, small dental or medical expenses, or paying bills on time when money’s tight. Payday loans are designed for small short-term expenses under $1,500. If you have a bigger expense that needs longer financing, consider using a credit card or applying for a personal loan from your bank or local credit union.

How much do payday loans cost?
This depends on your lender and the laws in your state. Many states in the US that legalize payday lending regulate the amount of interest a lender can charge. The average payday loan costs $20 per $100, although some states impose interest rates as low as 36% annually. You can usually find lower interest rates by searching for lenders online.

How do I apply?
Either visit your local payday lender and complete an application there or submit an online application to an Internet payday lender. If you’re borrowing in person, you’ll need to bring your ID, recent bank statement and pay stub, and a post-dated check with you. The check should be dated with your next payday and written out for the amount you’re borrowing plus fees.

If you’re borrowing a payday loan online, fill out your lender’s basic online application, which should ask how much you need, your monthly salary range, and some basic contact info. Your lender will get in touch with you after reviewing your initial application to further discuss your loan.

Payday loans do not require a credit check, so you can get approved for the cash you need as long as you have a stable income and a bank account that’s not currently overdrawn.

Find more answers to your payday loan questions online.

Are you concerned about the risk of borrowing payday loans online? It’s good to keep yourself safe online, but that doesn’t mean you can’t find a trustworthy lender when you need to borrow emergency cash. There are plenty of low-risk payday lenders online who will approve legitimate loans when you need them. The key is weeding out the scammers from legitimate lenders.

Payday Loan Scam Warning Signs
There are some features to look out for to detect a payday loan scam. First, all lenders are required by federal law to display their interest rates and other fees prominently on their websites. If you visit a lender’s page and don’t see any information about their rates, it’s likely a sign that they’re not legitimate.

Also, a good online lender should have a way for their customers to contact them. If you find information like a phone number or a mailing address missing from the website, you may have a scammer on your hands. Make sure all the vital information is there.

Another way to detect a payday loan scam is by reading customer reviews of the lender online. Do an Internet search on the lender’s name and see what kind of reviews come up. If it’s all negative or people saying they were taken advantage of, it’s likely that the lender is not legitimate. Finally, check to see if they’re registered with the Better Business Bureau. If you can’t find them registered there, that should be a red flag.

Staying Safe Online
It’s important to protect your personal information. Online payday lenders shouldn’t ask for details like your bank account number until your payday loan has been approved. Never give out information like your bank account or social security number until you’re certain that your lender is legitimate and trustworthy. You’ll keep yourself safe and take the risk out of borrowing your cash loan online.

Deciding when to take on extra debt is a big decision, no matter how much cash you’re borrowing. Whether you’re taking out a student loan to go back to school, a personal loan to pay for a wedding, or a payday loan to take care of a few incidental expenses, it’s always important to take a look at your current finances to decide how much cash you need and what kind of interest rates you can afford. Here are some questions to ask yourself before borrowing cash from any lender, whether it’s a payday loan or a larger personal loan.

What can you afford?
This will determine what kind of loan you get. Wired payday loans are short-term cash loans with higher interest rates due to their lack of credit check and the fact that they’re offered by independent lenders who aren’t backed by banks. Can you afford a small cash loan with interest rates averaging $20 per $100? A $20 per $100 fee doesn’t sound like much for a small amount, but rates can get expensive quickly. You’ll only pay $120 for a $100 cash loan, but you’ll end up paying $600 for a $500 loan. Can you afford the additional interest? If not, try considering other, less expensive options with lower interest.

What other options do you have?
If you have a savings account, or even friends and family who can help you out, consider taking advantage of those options before borrowing cash from and kind of lender, whether it’s a bank, credit card, or payday lender. Using resources that you already have available will cost you less than borrowing money with any interest rate.

What does your credit score look like?
Have you looked at your credit report recently? Your credit may be better than you think, qualifying you for a personal loan or a credit card with lower interest rates than a payday lender can offer. Check your credit score and talk to a lender at your bank to see what kind of lower interest loans you might be able to qualify for.

Wired payday loans online are convenient and can be affordable in a pinch with the right lender. But consider all your available options first before going into more debt than you can afford.