Found yourself short on cash and thinking of getting a payday loan?
A payday loan takes minutes to apply for and you can have the cash you need within hours. It’s quick and convenient but, can be risky if not managed well.
In this article we’re going to teach you everything you need to know about how to use payday loans the right way!
Payday loans solve cash emergencies
A payday loan is your best bet for the few days or weeks that you need it provided that you make your required repayment and do not make it a habit. This is a simple, small loan that is designed to help you with a little quick cash until your next payday.
They are ideal for cash emergencies because they pay out so fast and do not have stringent application requirements and procedures. Applying for a payday loan is easy and convenient since it can be done completely online.
There are many lenders who offer payday loans with variable interest rates and repayment terms that are catered to suit their specific target market. They may offer small payday loans that must be repaid in one lump sum or they may offer a payday loan that can be repaid in three, easier to manage installments.
A payday loan is for you; here’s why
If you are looking at bigger loan amounts then a payday loan will not work for you. A payday loan will suit you best if you are looking for a small amount for a few days and you will be able to pay it off as soon as you get your salary.
If you need a loan that you can be paid off in a year, then you should look at a short-term loan. The short-term loan allows you longer repayment terms and you will get better amounts that you can pay off.
When is a payday loan not a good idea?
There are certain instances when a payday loan is simply not a good idea, even though it may, at the time seem to be. One common example is when you already have a payday loan outstanding or when you have just repaid a payday loan.
If you need to borrow money right away after having repaid it then you are very likely experiencing financial hardship or have become dependent on payday loans.
It is also not a good idea to take out a payday loan to repay loans and debts. Payday loans have high interest rates which makes them completely unsuitable for debt consolidation or for use to repay debt.
This is because the cost will end up to be very high and will cause any bad debt situation to worsen.
Apply for a payday loan within minutes
The payday loan is one of the easiest loans to apply for, all you have to do is apply online. You will have your loan within the same hour or the same day. Most of the companies will approve you quickly when applying online.
These online loan applications have been designed to allow customers to complete them within minutes and upload their required supporting documents such as their ID and proof of address with as little fuss as possible.
The best way to search for the perfect loan is to use loan companion sites. You can even use a credit union or a peer-to-peer lending service but this may take significantly longer and you will have to have a good or excellent credit score.
What to consider when applying for a payday loan
- Is the lender registered? If not you should stay clear and find an alternative service provider.
- Does the lender offer the loan amount you’re looking for?
- Does the lender have flexible repayment terms or will you have to repay the payday loan in full on your next payday?
- What is the interest rate on the loan?
- What fees will you be expected to pay?
- Look for a comparison rate which includes not only the interest but also any fees you’ll encounter when taking out a loan with that specific lender.
- Does the lender offer good customer service? Company reviews can tell you a lot about this aspect of a lenders overall service offering.
- How is the lender’s security? You should demand and expect bank grade security and complete protection of your personal information. If there are any security risks, the most likely way you’ll find out is through reviews.
Payday loans are one of the best loan types available
Payday loans are great for small expenses that you will be able to pay back over a short time period. For instance, if your car has broken down and you only have a day or two to get the money together to pay the mechanic, then a payday loan is for you. Especially if you know that you will be able to pay the amount back in the next two or three days or a week or two.
Other common payday loan uses
- Pay urgent bills including medical and vet bills
- Buy gifts and other important items
- Use the cash to tide you over until payday
- Use the money to finance transport or travel when it’s urgent
- Repair vehicles and appliances when needed
Payday loans for people with bad credit
Another big advantage that payday loans offer over traditional loans is that those with a bad credit history can also qualify for them.
This means that even if you’ve had a few repayment mishaps in the past or have made some credit rating mistakes, you can still access quick cash when you need it most.
This does not mean that the payday lender will not run a credit check, they certainly will! It simply means that despite you poor credit, a payday lender will offer you a loan provided that you can meet their affordability requirements.
This means that they must be convinced that you will have sufficient surplus cash on your next payday, after all of you expenses, to make your loan repayment.
Cash in a flash!
A payday loan is also for you if you need a little extra cash to tide you over till payday. There is no need to go and get a short term loan if you only need a few pounds until your next paycheck and you know you will be able to pay it back.
To apply takes only a few minutes and you are guaranteed a quick decision on your loan application. The loan amount is usually transferred within the hour, which means you get cash in a hurry when you need it most!