If you have never applied for cash advance payday loans there are some terms that may be a bit confusing. Having a good understanding of just the basics will help you decide if this type of loan is right for you, plus you can always ask specific questions if something doesn’t seem clear in the contract or agreement you are signing.

The first thing that you have to know is the type of loan you are applying for. A payday loan provides immediate cash that will be paid off, usually in full, when your next paycheck arrives. This is usually set at no longer than one month from the date of borrowing. You will need to provide a copy of your pay stub to provide employment and you will also need to have a valid, current residential address. A debt consolidation loan may also provide cash, but it will also combine all your outstanding debts into one payment that may or may not decrease the total amount of the monthly payment. A bad credit credit card will provide you with access to limited amounts of credit that can be paid back over time, however usually the interest rate will be higher than either a traditional credit card or a payday loan.

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