There is no need to attach any collateral when trying to obtain payday loans. There are certain guidelines on the basis of which lenders approve the amount, such as being at least 18 years old and employed. Most payday loans are issued by smaller finance companies or specialty lenders, and use a postdated check as the only form of collateral to secure the loan. One of the most obvious differences that you can find between a pay day loan and more common types of loans is the fact that pay day loans don’t charge interest on the money that is borrowed.