Many people in the UK - 35% of households, according to the Money Charity - don’t have enough savings to cover an unexpected cost. This is where a bad credit payday loan can come in. These loans can be used to bridge the gap between an unexpected expense and payday. They are usually for small amounts and come with high-interest charges, so you would only take one on in an emergency and if you are confident you will be able to repay shortly after.