A payday loan is an unsecured loan. This means that if you take out a payday loan, you don’t have to pledge an asset, like a car or a home, as collateral or security against the loan. This means that, if you fail to make repayments for your payday loan, you won’t have to give up an asset, like you would with a secured loan. However, late payments will be reflected on your credit report, and this may affect applications for credit in the future.
