A payday loan is a short-term, small-dollar loan designed to cover a borrower’s expenses until their next payday.

Here’s how a payday loan typically works.

💵 Loan amount: Usually a few hundred dollars or less.

⏱️ Repayment period: Generally due on the borrower’s next payday — often within two to four weeks.

💳 Repayment method: The lender usually requires access to the borrower’s checking account.

✅ Safer alternatives

Small-dollar installment loans with longer repayment terms.