A growing number of studies are starting to show evidence that payday loans are better than credit cards, at least in some ways. Credit cards are a landed aristocracy of consumer credit, and are given first tier status; a pedigree that is at this point – let’s be honest – dangerous to lend credence to and undeserved. Card companies use FICO scores to determine rating and limits and interest charges, whereas your average payday loan company uses Teletrack, a method of subprime credit rating that 8 times more accurate at predicting defaults. The reason why is that payday loans lenders stay competitive because they have to be – because unlike the credit cards industry, they can’t buy Congressmen.