If you’re strapped for cash and have a low credit score, a same day payday loan can sometimes be a viable alternative. But before taking the payday loan plunge, it’s important to understand how the loan process works. With no credit check and quick cash available, many Americans feel same day payday loans are an easy option because payday lenders typically don’t require a credit check. In addition, quick cash is available from those lenders.

When you apply for a payday loan, you need to understand that payday lenders want you to pay it back in full with your next paycheck. Payday lending fees can add up quickly when you fail to meet payday-lending requirements. Most lenders charge a fee ranging between $15 and $35 for every $100 you borrow. If you need a short-term payday loan, just remember to pay it back as soon as it is due (or by your next pay period). If you don’t, you’ll wind up paying much more than the loan amount.

Since many consumers fall into the payday loan trap, most financial planners feel that payday loans aren’t a good option. However, if there is no other alternative, payday loans can really help people who are faced with an emergency.

Most people don’t realize the consequences of a payday loan, only that it solves a short-term problem. The following are a few alternatives to payday loans:

- Ask a friend or family member for a loan.
- Borrow from a Credit Union (but understand the fees and terms before you sign).
- Put off the expense until you have the money to pay for it. For example, if your car needs repairs, find another form of transportation until you have the money in hand.