Payday loans can be very helpful in emergencies, but they can also be very costly if you do not treat them responsibly. Unlike conventional bank loans, payday loans need to be paid back right away or the interest rate will skyrocket.
Traditional lenders want you to have a pretty good track record with no defaults and mostly on-time payments. Banks and even credit unions won’t consider your application if you have had some credit problems in the last several years.
