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Payday Loans for Bad Credit

I have a close friend who works in the payday loan industry. They seem to be all the rage in my state. He makes me laugh when he says that he’s in the “payday loans bad credit” market, because I will tease him and ask him if that means there’s some sort of “payday loans for GOOD credit” out there that I didn’t know about.  Indeed, payday loans for bad credit are the standard payday loans.

You should never consider getting a payday loan if you have good credit. They are specifically designed for people with bad credit, and it should be a case of emergency before you went to one. I can tell you that I would do everything in my power to never use a payday loan. Why? How about interest rates that are out of sight? You can be looking to pay over 500% on a cheap payday loan, and triple that on a bad one.

When my friends starts in telling me about his bad credit payday loan business, I usually just laugh and tell him to stop charging 8,000,000% interest!

Instead of being faced with taking out one of these loans, do everything you can to restore your credit. Get yourself a secured credit card. It won’t take long until you can get a real credit card, and the interest rate on that credit card will be WAY better and lower than it would be on any payday loan out there. While most credit cards are going to carry about 23% interest if you have bad credit, it will be much less once your re-establish your credit rating. I personally am paying about 13% interest on my cards, which is about the same as a signature loan from a bank.

Overall, I recommend to those of you thinking about taking out one of those payday loans to proceed with great caution. As I said, the loans are cheap, and they can put you and your finances in a really difficult place. So do everything in your power to get rid of your debt. Not only does debt cause major stress in your life, most things aren’t really worth buying in the first place.


1. Make the commitment to pay your bills on time from now on. 2. Don’t ever skip your credit card payments. 3. As soon as possible get your revolving balances paid down. 4. Maintain low balances on 4 credit cards.

Restoring your credit means changing your habits, and that can be tough for some people. Truly, changing a habit is not always easy to do. However, to protect your financial future, it will be one of the best things you can do. Keep in mind, with bad credit, you will always need to make more money to keep the same lifestyle.

About The Author

Ben Todd

Ben was a seriously broke graduate student with bad credit who after finding himself rejected for any sort of credit card or loan for most of his adult life, finally decided to get his financial life in order. 'He spent several years reading as many financial advice books and blogs as he could.And suprisingly, Ben found he actually LIKED the topic of personal finance; after fixing his own finances, starting his own successful work at home website business, and using his earnings to get out of debt, created to help others do likewise!

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