One of the solutions to have gained a lot of attention during the credit crunch is the low cost payday loan. This type of loan is made for an amount between $100 and $1500. It is generally repayable within 14 days and in most cases is secured against the applicants pay cheque.

The great news with this type of loan is that it is available very quickly, to a huge range of people and without any reference to your credit record. In fact, your privacy is guaranteed and no one will ever tell the credit reference agencies of the transaction which takes place between you and the low cost payday loan company.

These loans are exceptionally simple to get. Provided you have a job which can be verified by the low cost payday loan company and provided you have a checking account into which the money can be deposited, as long as you are over 18, you will qualify for this type of credit.

It isn't designed to help you remodel your kitchen, it's designed to help you to overcome some short-term emergency issue. These types of companies generally have excellent resources which can help you to budget in the future so that your need to access this new type of credit line is limited.

The costs are pretty good too. Today in America, if you bounce a cheque, it is likely to cost you up to $50. In addition to the monetary cost, there is a cost in the future relating to the damage that this type of transaction can do to your credit rating.

Borrowing $100 for 14 days from a low cost payday loan company will only cost you $15. This is less than a third of what a typical bounced cheque will cost you and it doesn't do any damage to your credit rating.

What most customers are amazed at when they use this type of credit is how fast and easy it is. These types of companies are experts at providing the exact solution that people need in an emergency. Their key focus is or is to provide the money quickly and with the minimum of fuss and to put in place a fair agreement with you to have the money repaid from your next pay cheque.

Once the agreement has been reached, the money is deposited into your checking account within 24 hours and is repaid from the same checking account on the date that you stipulate.

If you have had an emergency and haven't been able to raise the capital, you'll know how frustrating and potentially damaging this can be.

Thanks to a low cost payday loan, millions of Americans now have access to capital that can help them get through this very difficult period.