There are lots of people that do not know much about payday loans. This is usually because they have not used them before and because they are not something that is offered by their bank. However, it is important for us to know about the main features of this loan. This is because the more we know about loans, the better a choice we can make when we take a loan out. It is important for us to use a loan that will suit our needs and that means that we need to know what each loan can offer us and then we will be able to pick the best one. If we do this, then it is unlikely that we will have questions such as whether Payday loans are just for emergencies as we will know this for ourselves. It is worth this question being addressed now though.
What Were Payday Loans Designed for?
Payday loans came about because it was observed that when those people that had a poor credit record and therefore could not borrow money easily, needed money in an emergency. It was very hard for them to get any money. Therefore, it was felt that they needed some sort of loan which would enable them to have money so that they could get through the emergency more easily. The payday loan was therefore started and now there are many lenders that are offering them.
Why are They Good for Emergencies?
The loans were designed for emergencies and the lenders realise that this means that the borrowers will need the money quickly. Therefore, they will make sure that they process the applications as soon as possible so that the money is available quickly. The time it takes will vary between lenders though but there are some that will be able to get the money to the borrower within a few hours. Others will take a bit longer and so you will need to check, as if you do need the money really quickly, you will need to make sure that you are able to do that. There are also some payday lenders that will be open all of the time which means that they will be able to organise loans outside of normal banking hours. This means that you will be able to get money from them at the weekends and overnight. This could be a handy feature for some people depending on when they need the money so it is worth bearing in mind that this is something that could be worth looking in to as well.
Are they Only for Emergencies?
A payday lender will not check to make sure that you are borrowing for an emergency though. Their loans will be available for whatever purpose you need. This means that you could use them when you do not have an emergency. Of course, there are other loans which take longer to arrange which could also be useful in situations like this. However, a payday lender will lend to you even if you have a poor credit record. This is something worth bearing in mind as it could make a big difference. If you cannot borrow elsewhere then the payday loan could be a useful loan to use. It does lend up to £1,000 normally, although first time borrowers may not be able to borrow this much and you will repay it really quickly. This can be great for anyone that does not like being in debt, but it might be tricky for those people that find it hard to manage repayments. This is because you have to repay everything in one go on your next pay day, so you need to plan carefully and make sure that you have the money available to do this.