Final answer:
A payday loan is a short-term loan where lenders extend high-interest credit based on a borrower's income and credit profile.
Step-by-step explanation:
True. A payday loan is a short-term loan where a lender extends high-interest credit based on a borrower's income and credit profile. These loans are typically for small amounts of money and are meant to be repaid quickly, often within a few weeks or on the borrower's next payday. The high interest rates associated with payday loans make them a costly form of borrowing.