This type of short-term loan is typically meant for people who need money until their next payment. Every month, the average American receives a paycheck and finds themselves short on funds or in need of a few hundred dollars until their next paycheck arrives. It could be a crisis at home, a car breakdown, or your rent is due.

Payday loans, often known as 'payday advances,' allow you to receive money in a lump amount and pay it back in full on your next payday. So, if your emergency is a one-time occurrence, you should be able to get back to normal as soon as possible.

Payday loan alternatives and apps mean that the average loan is only good for a few weeks, and the best online payday loan lenders can provide terms of 12 to 60 months. Instead of borrowing $300 and paying it back in full within a few weeks, you can borrow more and for a longer period of time if you need the extra breathing room.