Payday loans are becoming increasingly popular and the industry is attracting alot of attention. Payday loans are cash advance loans that consumers can get, until they are compensated on payday. An example of a payday loan transaction is, a consumer gives their payday loan lender $110 for borrowing $100. After the consumer gets their pay check, they pay the lender back for the principal amount of $100.

The reason payday loans are attracting attention is that they are offered at high interest rates. Why are they offered at high interest rates? Let's examine the loan process.

1. A typical bricks and mortar bank will never loan you up to $1,500 in 24 hours. The barrage of paperwork that you would have to complete would take more than 24 hours.

2. The requirements for taking a payday loan is minimal. You need a job and a bank account. That's it. Most banks will require that you produce evidence of assets in order to extend you a personal loan.

3. No credit checks. There are no inquiries against your credit file. This means that the lender is taking a risk. Your credit score could be 450 and you can still get a payday loan.

4. Faxless payday loan lenders will even process your payday loan request without any hardcopy paper work. No faxing documents back and forth. Everything is done online.

So the answer to the question is "it depends". If you need cash in a hurry and you cannot borrow it from friends and family, a payday loan is a flexible, accessible option. If you have assets such as a home, you can consider refinancing your home mortgage.