Consumers with bad credit usually end up without a loan. This is because they are deemed as high risk borrowers which not many lenders want to deal with. Hence, it is difficult to get payday loans for bad credit borrowers. These bad creditors gain a bad reputation for defaulting on their loans they end up with a bad credit score.
There may be a few willing lenders to bad creditors. These may capitalize on the desperate position of the borrowers and raise the interest rate and service charges. If bad creditors are really desperate for a payday loan, they would agree to all kinds of terms and conditions hence, they will most likely be fleeced. It depends on the true reason for a loan by a bad creditor. If he has a potentially positive investment that turns around quickly, it would be a worthy payday loan even with the high interest. Both parties are at risk.
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There may be a few willing lenders to bad creditors. These may capitalize on the desperate position of the borrowers and raise the interest rate and service charges. If bad creditors are really desperate for a payday loan, they would agree to all kinds of terms and conditions hence, they will most likely be fleeced. It depends on the true reason for a loan by a bad creditor. If he has a potentially positive investment that turns around quickly, it would be a worthy payday loan even with the high interest. Both parties are at risk.
[source]
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