Knowing that you r credit rating is at an all time low can make it incredibly hard for those looking to source some extra funds; to apply or not to apply? that is the question. Do you continue to leave your financial footprints all over the gaff or do you stop, breathe and look at the alternative options available to you? The more you apply to the traditional lending institutions the more you are likely to be turned down and the more likely you are to cripple your credit score.

Restoring your credit's carcass can be a tumultuous task and usually takes time and a concerted effort to repair the damage done from previous dalliances and dealings with funds you did not have. Whether that came in the form of multiple store cards, with numerous payment defaults because your car's MOT was due and needed repairs a cost you simply did not anticipate; or it was because you were once earning more than you currently are, but continued spending based on your old wage packet. Regardless of why, your current state has been deemed ‘sub-prime' and now another emergency has come up and you need more funds than you have sitting surplus in your account.

Even though you may have rectified your spending and are now keeping well within your budget, the acts of yesteryear have left an indelible mark on your credit record and for years to come you may be paying for it. What then are your options? Well you can approach a lender that specifies in lending to those with an adverse credit history without too much of a penalising for the benefit, or you can do like many thousands have been doing and approach a company that offers pay day loans or short term loans for the credit crippled.

What are the benefits of such companies and what are the pitfalls that can be made when you approach such lenders? Some may offer a rate that is relative to the amount borrowed while others will take a set amount per set amount. For example, some companies you approach may have an incredibly high rate of 23.5% of the amount asked for. So if you were to borrow £100 you will have to pay £23.40 for the privilege, however if that amount increases to £350 you will have to pay £82.25. Other places have a set fee of £25 for every £100 borrowed, so for making £350 available to you where all other lenders have refused, you will be handing over £87.50!

While these rates may seem extortionate to most, especially when the Bank of England has set its base rate at a relatively low 5%, the reality is a lot of the high street lenders are offering similarly sky high rates when it comes to their offerings of a credit card which in essence is a pay day loan with the flexibility to continue to borrow on it for as long as the lender allows. With that in mind maybe many will think twice if not three times before making the assumption that popular or recommended lenders are the most moral and honourable; or that they will not charge you extortionate rates for simply being needy.

However it is important to note that the entire structure of the loan system is pivoted on one single point, greed. Maybe it was the greed of months ago when you just had to have that Prada bag despite it costing you over a months' wages, or its the greed of the institution who offered such individuals the opportunity to make the purchase by providing them with a credit allowance that far exceeded their earning capability.

If greed is what is driving the financial wheel then make it work to your benefit, if you know you can pay the amount on your credit card off in full, then do so, that way you won't have to pay the high APR rate the lender relies upon to earn money off your needs. Do your research on borrowing and make your money work for you the way you work for it.