If you need money in a hurry then there may not be that many
loans that you can choose from. If you already have a credit card or an
overdraft then these can be immediate, but if you do not have these or have
maxed them out, then you may be looking for something that you can arrange
quickly. You might look towards a payday loan as these are known as being quick
to arrange and most other loans are known to take a long time. It is worth
finding out more about them to see whether they are as quick as you think and
whether they will be suitable for you.
How quickly can they be arranged?
Payday lenders will vary in how long they will be able to arrange your payday loan quickly. However, they will still be relatively quick. Some may be able to get the money to you within a few hours and so if you need the money in an emergency then this can be very useful for you. Some may take a bit longer, perhaps up to a few days. It is good to check with the lender as to how long they will take, because it will vary between them. Some will have staff that work 24 hours and this will give more chance for them to be bale to provide the money that you need quickly but some may not offer this. It is therefore worth investigating a selection of lenders to see what differences there are between them with regards to how quickly they can get you the money that you need.
You will also find that how speedy the loan is will depend
on how quickly you provide them with the information that they need. It can
therefore be useful to find out what they need so that you can be well prepared
if you do decide to apply through them.
How quickly do I have to repay?
It is worth understanding that the loan will not last long either. This can be a big advantage for some people, especially those that are not keen on being in debt. However, as the repayment is just one lump sum, you will need to be confident that you will be able to cope with paying this. The repayment will be set up to leave your account on the day that you are paid, which will make it easier for you. However, you will still need to make sure that you have enough money to be able to afford to repay the loan and cover the costs of all of your other bills as well. You will need to manage on less money for the rest of the month.
It is important to think about whether this would suit you
or whether you would find it easier to spread the payments over a longer period
of time. Although having a loan for longer could be more expensive, because of
the interest charges, it could be easier for you to manage and less stressful
for you. It is therefore worth thinking about this.
Will they suit me?
As well as the repayment and the speed, it is worth thinking about all aspects of a payday loan and comparing it to a more conventional loan. Consider whether the way that they work will be more suitable for you compared with other similar loans. You should compare the cost but also other things such as the way it is repaid, how long you have the loan for, the reputation and customer service of the lender and things like this. Consider what is important to you in a loan and a lender and try to match up the best loan to suit your needs. If you need money really quickly, then it is most likely that a payday loan will be the right option or you, However, you should check out the other options as well.
So, if you do need a loan quickly, then a payday loan could
be the one for you. Some lenders will be able to get you the money in a few
hours, whereas others could take a few days. How quickly you apply will also
influence how long it will be until you get the money. Try to do some research
first though, making sure that this is the right type of loan for you, that you
will be able to repay it and that you are picking the best lender. This will
take some time but hopefully you will be able to spare that much time to ensure
that you get the very best solution for you. You should be able to do your
research online, so it will not take that long and hopefully it will not be too
difficult for you to find the information that you need.
If you have not had a payday loan before then you may not be
aware of how much it costs. Payday loans do have a reputation for being expensive
and this can put people off looking into them. However, it is well worth understanding
more about them and how they are different to other loans as well as looking at
the cost so that you can decide if they are a viable option for you.
How to calculate the cost
It is very easy to work out how much a payday loan will cost you. Firstly, you need to be aware that lenders will vary in what they charge and so if you work out the cost for one, this will not apply to every lender and so you will need to compare them to find out which might be the cheapest. To find out the cost you should be able to use the calculator on their website. They are set up to be simple to use, so you just enter the amount that you wish to borrow and how long you will borrow it for and it will let you know how much you will have to repay in full and form that you can work out how much they are charging. This is an easy way to compare the costs of different lenders. You may not be sure how many days you will need the loan for but you should be able to work this out. You will have to repay it on the day that you are paid, so work out how long it is until then and that is how long you will need it. If you are not sure exactly which day you will take it out, then make a guess, but make sure that you use the same figure for all lenders and you will be able to get a fair comparison. It is best to wait as long as possible before you take out the loan as you will then repay less money as you are charged for each day that you hold the loan.
Why is the cost relatively high?
You may wonder why the cost of a payday loan seems relatively high compared to some other types of lending. Firstly, short-term borrowing looks more costly as the admin charges all have to be paid over a short period, However, with a long-term loan, this can be spread across lots of repayments and so is less noticeable. You will also pay more to cover the risk that the lender is taking by lending money without doing a credit check. If repayments are not made on time they will have costs as they will have to try to take the money form you at a later date and there will also be costs of them not getting the money back as they will not be able to lend it to someone else. Some of these costs are covered by the additional fees that they charge when you do not repay on time, but this is also taken into account with the main charges too.
Can I afford it?
It is really important to work out whether you can afford a payday loan. You need to consider the repayment date and the repayment amount and think about whether you will be able to manage that repayment. It can be easy just to assume that you will because it comes out of your account on the day that you are paid. However, you will need to make sure that you have enough money available to cover all of your other expenses as well. You will still have to pay for all of your other commitments such as rent or mortgage, other loan repayments, tax, contracts, utilities, transport and food. This means that you will need to make sure that you will have enough money left to pay for these as well as covering the cost of the payday loan repayment. You should be able to find out by looking at your past bank statements and noting down what expenses you expect to have and what income you expect and adding them up.
Is it the right loan for me?
It is really wise to make sure that you compare your options. Make sure that the payday loans will be the best one for you. Even with a poor credit rating you may find that there will be other borrowing options available for you. It is worth considering these and finding out whether there are alternative options for you. You also need to consider the cost of the loan and how easy you will find it to repay. There are a lot of factors to consider and you need to carefully compare all of your options so that you can choose the one that is most suitable for you.