Short term financing for satisfying a consumer's immediate needs is not a new phenomenon. Payday loan or cash advance is simply a new term for the old practice that was prevalent even in early American history. According to this practice, short-term loans were granted to the farmers, factory workers or miners to enable them to feed their family between the pay periods. Nowadays, the government has given affiliation to the money lenders who provide ready cash to the needy people for helping them meet their emergency requirements.

Now that the latest regulations are imposed by the American government on payday loan providers, it is important to find one that complies with the state rules and policies of lending money.

Payday Loan: How to Find the Legitimate Lenders

Any lender that offers you payday loan without referring to certain terms and conditions is a dangerous choice. So, your best bet is to find a legitimate lender firm. Follow these tips to come across an ethical money lending organization:

• Check out some government website that enlists all the registered and affiliated money lenders in a particular area. Any lender firm, in order to operate legally, has to register with a government agency. So, check for the name of the lender whom you are going to deal with. If it is there in the list, you can rest at peace while transacting with them.

• You can also contact the lender directly and ask him if he has submitted all the necessary details about his firm to the government. A genuine lender will not hesitate in providing you the asked details. However, if he does not disclose the information; there is full reason for being sceptical about the legitimacy of his firm.

• Simply conforming to the state regulations is not enough. Before dealing with a lender, you must verify his reputation in the market. It may be possible that the lender firm is only making a show off of following the state policies, while in reality it practices no business norms.

• Check with the Better Business Bureau (BBB) to be sure of the company's reputation. If people are not happy with a lender's services and there are numerous complaints filed against his company, the same will reflect in the ratings of BBB.

• Finally, make extra effort to compare different lenders. There are various websites that can do this service for you and will compare the services of multiple lenders on certain basis. By availing this service, you can come across the most legitimate online payday loan company. Moreover, you can also come to know about the prevailing interest rate and loan fee. This will help you save a lot of money as no company can cheat an educated customer.

By opting for payday loans, you can get short-term cash advance very fast. If you have a permanent job and you earn about $800 per month, then you can easily qualify for such loans. For seeking higher amount of loans, you need to have higher pay. The maximum amount one can get as a loan from these firms is $1500.