A credit score below 630 does not prevent you from taking out a personal loan, and payday loans are not the last resort for people with less-than-perfect credit who need an influx of cash. It is indeed possible for people with poor credit to apply for and receive a personal loan, and most personal loans for bad credit will not affect your FICO score at all.
The Danger of Payday Loans
Payday loans may seem like a simple solution, but they can actually plunge borrowers with bad credit even deeper into debt than they were before they took out the loan. Most payday loans do not require a credit check, and they can get approved within a few hours; but with high interest rates, high fees, and short terms, the cost certainly outweighs the benefit.
Personal installment loans offer lower rates than payday loans, and they too do not require a credit check, making them a safer option for anyone with bad credit. They also have longer payback terms and allow for a customizable payment schedule to suit individual circumstances.