Payday loans are approved against your next paychqe. So these are very short term loans, approved for two weeks only. You are supposed to repay the loan at the time of getting next salary.
Because of risks for the lenders as there is no security offer from the borrower, and also due to very short term, lenders charge exorbitant fee on payday loans. On each borrowed £100 the lender will take a fee. So the total amount of loan becomes highly costly. This clearly implies that payday loans should be opted for urgency and when there is no other alternative left.
It is advisable to compare payday loans lenders as the lenders have different fees to combat the competition. So you are likely to come across a suitable deal of lower fee loan.
But a huge advantage is that bad credit people are instantly approved payday loans and that too without any credit checks. This means that these loans are also a tool for improving credit score soon as you pay back the loan in time.
Note that only salaried people of at least 18 years of age getting fixed monthly salary are eligible for payday loans. Avoid extending the loan or you may be paying enhanced fee of the lender.