Payday loans are a relatively new financial product that not many people know how to use properly. It is our hope that with our guidance that you will understand the true use of payday loans and not abuse its privileges which can not only be very bad for you in terms of accumulating debt but also an increasingly bad credit rating if you aren’t careful.

Before we progress to show you which bad credit payday loan providers we recommend we need to make it clear to you that payday loans are the most expensive sort loans that are available for public use. The only other product that is more expensive is credit card debt. It isn’t uncommon to have payday loans charge as much as 10-12% p.a for loans. The high rates charged is mainly because payday loans are primarily used as short term cash flow aids rather than a long term loan (e.g. housing loans etc.). The amount loaned is also much smaller so the bank has to increase the rates substantially just to cover the administration costs and see a slight profit.

Here are some of our favorite payday loan providers:

The greatest mistake that a lot of people get into is to use payday loans as a form of long term loan. The first and most obvious problem to this is the costs of the loan will well and truly make any cash flow situation that you are facing now pale in comparison to the problems you will get from servicing your payday loan over an extended period of time. This comes from the huge interest rate penalties that payday loans have and the very strict repayment periods that are necessary to service the loan.

The most obvious benefit and the very reason why payday loans were first invented as a financial product are to help you with your cash flow problems between your monthly pay checks. This means that the payday loans should only be used for durations no more than 30 days. The application process normally takes less than 2 days and access to funds is extremely fast, there is very little paperwork and also very little background checking to speed up the process.

The most effective way to apply for payday loans is to do it online. Most lenders will not even get a background check so even those with the worst credit histories can apply for loans. All that is necessary is a checking account, a steady income and up to $1000 or more deposited in your checking account.

If you are in need of extra cash until pay day, you may want to consider applying for a pay day or check loan online. A pay day loan can be obtained online and with no credit check. Bad credit will not disqualify you from qualifying for a pay day loan. You can use the money for what ever purpose necessary and the money can often be deposited into your checking account the very same day you apply. All you need is a checking account, and a steady source of income and you can get up to 1000 dollars or more deposited directly into your checking account.

Another major drawback of payday loans is that despite the fact that they don’t seek a thorough background check, they will report any infractions to credit reporting agencies. It should be noted that payday loans are classified as short term credit and amount to a large percentage of the overall credit score weighting so defaulting on your payday loan can seriously damage your credit score. Be careful.