In many cases, PayDay loans are not good in general. Not only are their interest rates high, but hidden fees and growing interest payments can become too much of a burden.
Eventually, this type of constant lending can lead to a negative situation. This ‘debt trap’ is where you are getting a PayDay loan to pay another PayDay loan back. Debt should never be incurred in order to pay debt back.
When it comes to your credit, these products have no negative or positive impact on your credit – unless you miss a payment.