There are plenty of people that do not really know much about payday loans including who they are for. This is because they are not offered by traditional banks and so you may not know so much about them. It is a good idea though, to make sure that you do know about them and then you will be able to decide whether they will be a loan that will be useful to you. You never know when you might need to borrow money and it is hard to predict what your circumstances might be like when you do need it and therefore it is a good idea to know a bit more about them and whether they are something that you will be able to use.
Who are They for?
- Those with a Poor Credit Record – if you have a poor credit record then your borrowing options will be limited. Many lenders will want to see that a person has a good credit history – that they make repayments and payments on time, for example. If you do not have this then it will be harder for you to borrow. However, a payday lender will not look at this sort of thing, they will lend to most people and will just lend small amounts to reduced the risk to them of people not repaying the loans. They were actually designed to help out those people with a poor credit record.
- Those Needing Money in an Emergency – the loans were also designed with emergencies in mind. The lenders realise that there are a lot of people that need money quickly and it is not always easy to get money fast. Therefore, they make sure that they money will be with you very soon after you apply and some lenders will even get you the money within a few hours. There are also some which operate outside of normal banking hours – at weekends and overnight so that you can get money any time that you need it.
- Those Wanting a Quick Loan – there are some people that want a loan which will be repaid really quickly. This is because there are people that d not like being in debt and want to pay it off as quickly as possible. With a payday loan it will be repaid when the borrower next gets paid. This means all the money borrowed and any interest or fees will all have to be repaid in one go on your next pay day, which will be in a few weeks or maybe a few days after you take out the loan. This means that you will not be in debt for very long at all which is something which a lot of people will be happy about.
- Borrow small amounts – some loans are for large amounts of money but with a payday loan you can normally only borrow up to £1,000 and often less. This means that the loan will be for a more manageable amount and it will be less daunting that theloans which are for really large amounts of money.
So, you can see that there are lots of features of payday loans which make them attractive to different types of people. It is worth thinking about what you are looking or in a loan and then you will be able to decide whether a payday loan will be right for you. Of course, our borrowing needs may not always be the same, so it is good to keep in mind what this loan will offer and then you can use it when it is a good time for you to be able to do so.