There are lots of ideas and thoughts that people have about payday loans and one of them is that they are only for use in emergencies. This is probably because the loans were originally set up to help people out in emergencies as it was found that some people could not get help when they needed money quickly. However, it is a loan which is more flexible than this, as although it can be arranged quickly, there are other features which might appeal to people in other situations as well as it is worth being aware of these.
No Credit Check
A credit check is when a lender takes a look at your credit record to see whether they are happy to lend you money. Even if we’re only talking loans from £100. They will be looking to see whether you can be trusted to repay the loan and if they see that you have missed payments in the past or you do not have a history of taking out loans, they may decide that you are too much of a risk to lend to. All lenders have to look at your credit record by law, but Payday lenders will tend to lend to anyone regardless of whether they feel they can trust them to repay. This is because they were set up to help out those that could not borrow money elsewhere. Therefore, even if your credit record is not good, it is unlikely to be an influence in whether you will be taken on for a payday loan or not. So, if you have been turned down elsewhere, then this could be an opportunity to be able to borrow the money that you need.
Can Borrow Small Amounts
With a payday loan, you tend to only be offered small amounts of money, up to £1,000. This can be really handy because it means that you will be more easily able to manage the repayment. With some loans you can be offered large sums of money and you can be tempted to borrow more than you need to treat yourself. Although this might sound great, it does mean that you could end up having a huge amount of money to repay and finding it really difficult to be able to do so. With a limited amount on offer, it means that this will not be able to happen and hopefully you will stay in complete control of your repayments.
You will find that a payday loan will have to be repaid really quickly. You will be expected to repay it, in full, on the next day that you get paid. This means that you will be able to get the loan paid back within a few weeks or maybe even a few days, depending on how far from the day that you are paid that you take it out. It can feel good to know that the loan will be paid back really quickly, especially for those people that find it difficult to cope with the idea of being in debt and do not like having a loan hanging around for a long time.
So, you can see that there might be other situations where a payday loan could be useful to you. It is a good idea to make sure that you consider all of the features of a loan when you are trying to decide whether it will suit you or not and that will allow you to be sure of whether you are making the right choice for you or whether there are any loans that are better suited to your needs. There ae lots to choose form so knowing a bit about each can be really helpful when you are trying to choose between them.