Bad credit borrowers face some difficult challenges when it comes to seeking loans from traditional lenders for financial emergencies. Little wonder they should turn to online and alternative lenders to secure the necessary financing. The good news is that obtaining personal loans with bad credit is definitely possible.The problem with traditional lenders, like banks and credit unions, is that they are extremely cautious when lending to applicants with low credit scores. And when there is an emergency, their approval process can be too slow to be of any good. In such circumstances, with little time to consider options, guaranteed loan approval is a must.There are loans that can be approved within seconds, and delivered in just a few hours. These are called payday loans, and are often a lifesaver for borrowers. But there are details that need to be known before taking them on.Advantages of Payday LoansOpting for these loans provides several advantages over traditional loans. The first is that approval is almost guaranteed with these personal loans, with bad credit completely ignored by the lenders. So, even those with the worst credit scores can get funds.The second advantage is that the approval system is extremely fast. While traditional lenders will boast 24-hour approval times, these loans are approved in seconds thanks to modern computer programs, with the funds then transferred directly into the bank account of the applicant as quickly as 2 hours after approval is granted.The reason for such fast guaranteed loan approval is that the income of the applicant is the only basis of consideration. And the loan is given on the back of an upcoming paycheck, thus the reason it is called a payday loan.Disadvantages of a Payday LoanBut this convenience and certainty is provided to every applicant at a cost. The interest rates charged on these loans are extremely high, with some lenders quoting rates of 30%. Getting personal loans with bad credit is great, but it is also extremely expensive.What is more, the repayment period associated with these loans is very short, with the loan term sometimes just 14 days. A common term is 30 days, but this too means that the loan is effectively repaid in one go. And since it is taken out of one paycheck, little is left with which to cover normal monthly expenses.The promise of guaranteed loan approval is still a major advantage, but in order to make the loan feasible, the loan sum limit is very low. These payday loans range in value from just $100 to $1,500, ensuring the specific emergency can be dealt with, but little else.Secret to Managing Instant LoansWhen time is of the essence, securing personal loans with bad credit quickly is not easy. So, when instant approval is offered, and bad credit ratings are completely ignored, it is an opportunity that is difficult to pass up. However, managing these loans requires real financial discipline.For a start, the repayment of any loan in one go can create greater financial pressure. For example, a $1,500 at 30% requires a single payment of $1,950 to clear – and that is a very large sum to take from one paycheck. Despite the convenience of guaranteed loan approval, extremely strict fees and penalties exist so any failure to clear the loan on time is likely to worsen the situation dramatically.Applicants must understand that, though the emergency is dealt with, other bills may have to go unpaid for at least a month. Planning and prioritizing future repayments is needed to recover from a payday loan as quickly as possible.