Payday loans are an option for borrowers who need cash and need it quick. It is an option for those who need to borrow a few hundred dollars for an emergency situation. They may need to pay the rent, fix the water heater, or pay for a car repair. They do not have the money on hand nor the resources to pay the bill. What they do have is a job and with that, they can qualify for a payday loan.

Qualifying for a payday loan is easy. You need proof of employment along with the proper identification. You will sign over a check to the payday lender with a future date (usually a few weeks out) on it. The lender verifies your employment and you can complete the process. There are no credit checks which makes payday loans an excellent choice for those with poor credit histories.

Now depending upon your employment and income, the payday lender may be willing to lend you say $1,000. If you only need $500 for a car repair, do not borrow the entire $1,000. Just because they offer it to you does not mean you should accept. Remember that a payday lender is in business to make money and they can do so by loaning you more money than you need.

You should consider the most negative thing about payday loans – the interest rates – before agreeing to accept one. A typical payday loan could cost as much as 400 percent in interest, but when you need to pay the rent by Friday, or you will be out on the street the interest on your loan does not seem all that bad. For every $100 that you borrow, you will likely pay back $120 plus fees. Think about that before agreeing to a payday loan.

You may wish to consider other options. If you own a vehicle, you may be eligible for a car title loan. This type of loan is also a quick way to access emergency funds. Embassy Loans has helped thousands of people obtain access to much-needed money using their vehicles as collateral. The process is very easy, and borrowers can get their money within a few days.

Like payday loans, the process for obtaining a car title loan does not include a credit check. Those with poor credit history need not worry. With enough equity in their vehicle, they could potentially borrow a few thousand dollars if needed. If you own a vehicle, consider a car title loan as an option over a payday loan.