Payday loans are short term cash loans and can be taken out by people who might not be able to get loans from other lenders. They are designed for people with bad credit score and one can borrow money for about one month. The amount one can borrow usually is no more than the amount of one’s next salary. Payday loans don’t have a good reputation because they are probably the most expensive type of loans. However, as there are unsecured loans they mean a higher risk to the lender as no asset has to be provided as security. Payday loans should only be the solution if every other option has been exhausted. The risk of getting into debt is high and in the event of a financial emergency it is worth seeing first if maybe relatives or friends could help instead.
To apply for a bad credit payday loan is very simple and can be done online by filling in a form with name, address, date of birth and details of employment. After completion sometimes the money can be transferred within hours. Requirements for a payday loan are usually to have had a permanent job for at least three months with a minimum amount earned each month. A credit check in most cases will not be carried out, and therefore people who have been refused other loans still have the possibility to get some cash in a financial emergency.