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If you do not have a good credit score, you may be tempted to take on payday loans when you need to borrow money in order to pay for a large expense that you have planned. However, payday loans are not an easy way to borrow money, as they have high interest rates that can easily exceed 50% to 100% depending on the amount of money that you have to borrow. These loans also have high transaction fees, so you will often end up paying more money in the long run compared to if you used a credit card to borrow money.