If you have bad credit and you are not a member of a credit union but you are seeking a loan then a payday loan could be an option for you. Payday loans are widely disliked as they tend to have extremely high interest rates on small amounts of money. Payday lenders can usually lend sums of £80 to £1000. However, if it is the first time you are going to a particular lender then around £400 is the largest amount you are likely to be able to borrow. Interest on payday loans is high because payday loans are usually aimed at people with bad credit. This means that payday lenders take on a greater risk when they lend and have a higher proportion of defaulters than other lenders such as banks or building societies.
The representative APR on payday loans is usually extremely high but it is important to bear in mind that you should only be borrowing for a maximum period of 30 days. The whole purpose of a payday loan is that it can tide you over in an emergency such as avoiding unauthorised overdraft fees from your bank or when there are important bills to pay. Most payday loan companies can put money into your account extremely quickly so this also makes them appealing for those in need of emergency cash.