Paying back everything that you owe on your payday loan each month is the cheapest way to run a credit card. Most have no other fees and so if you pay back everything when you get your statement, you will not be paying out anything but you will have the convenience of interest free credit on your spending during the month. Although this sounds like a great idea and it is the cheapest, it can work against you if you are trying to get other loans or credit cards. Some lenders do not want to see you paying back in full as they will not make money out of you and so will be less likely to lend to you. Others will see it as good discipline and are more likely to lend. It is likely that credit card and overdraft applications are probably the ones most likely to be influenced by this, as they make money from you not paying back quickly, when most other loans have a repayment schedule that you are required to stick to.