Payday loans are probably the credit product that i most used in the UK by people with bad credit ratings. Its a very short term loan that is taken out during the month when you are running short and paid back at the end of the month when you get your next paycheck.
A payday loan is only available to people in full-time employment and are only available in small amounts, usually up to £750. For some situations that can be ideal, if you have a true financial emergency. They should only be used if you have no other way to access cash and you would be in a dire situation if you failed to get your hands on the money you need.
The reason for them only to be used in an emergency is because of the very high interest rates which mean you pay back much more than you borrow leading to possible further money problems in the future.
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