Is a Payday Loan Good for Paying Bills?

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If you have some bills to pay and cannot afford them then you might be looking around for some finance options to help you. There will be lots of things to consider but a payday loan might be one of them. This can have a lot of advantages and it is worth knowing a bit more about these so that you can compare them to other borrowing options and therefore think about which will be the rest for you.

Fast to arrange

A payday loan can be really fast to organise, especially compared to a lot of other types of loan. You only need to provide a small amount of information and this means that you will not have to take very long to complete the required paperwork and it may even be able to be done online or over the telephone. This means that you will be able to get it done much more quickly than some other types of lending. However, this isn’t the only thing that makes it so fast. There is no credit check and this can help to speed up the application process as the lender will not be doing these checks and taking their time making decisions about this. They also have a lot of staff and therefore are often able to process the application forms very quickly and may even be able to get you the money within a few hours. Some are even staffed over weekends and overnight and so even if you need money outside of office hours, there will be someone available for you to contact and you will be able to get the money that you need. This means that if you need to pay your bills really quickly then you will have the money that you need fast if you use a payday loan. You will therefore not risk being cut off, evicted or even being taken to court as you will be able to get the money that you need to pay them.

No credit check

As mentioned earlier there is no credit check. Not only does this speed up the application process, it means that you will not need to worry if you have a poor credit record. Payday loans were actually designed to help those people that have a poor credit record as they are often unable to borrow money elsewhere. Although they are not exclusively available to those with a poor credit record, it does mean that they are available to everyone regardless of whether they have a good or bad credit record. You will not need to worry about whether you have a good or bad credit record or whether your credit score will be high enough to allow you to borrow money. You will just need to apply and not worry at all about it.

Repay quickly

A payday loan will only last for a few weeks. You will repay the full balance that you borrowed plus the interest when you next get paid. This means that you will not have a loan hanging around for very long. Many people get concerned about having loans and knowing that it will not last long can make a huge difference. It can mean that they do not get stressed about borrowing as they know that it will soon be cleared.

Repaid on payday

The fact that the payday loan is repaid on the day that you are paid means that you will have the money available to repay it. This should make it a lot easier to repay and take the worry out of the loan. Of course, you will need to make sure that there is going to be enough money available. You will have your pay going in, but you may have other direct debits going out of the account of be paying off an overdraft and this could mean that you will be left short of money. You therefore need to be very careful. You also need to take care that you will have enough money left in the account to pay for all of the other things that you need to pay for such as other bills, rent and food. It is wise to calculate this before you take out the loan so that you can be confident that it will be the right decision.

Conclusion

So a payday loan can be a good way to get money to pay your bills. It can be arranged quickly and there is no credit check and you repay it quickly. These can all make things a lot better and easier. You do need to be cautious, as you would with all loans, to make sure that you can afford it and weigh up the advantages and disadvantages of using it compared to other ways of borrowing and other methods to pay your bills.

Is the Most Well-Known Payday Lender the Best?

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When we are choosing a lender it can often be tempting to pick the one that is the most well-known. We might feel that we can trust them more but is this really a sensible idea?

Why are they well-known?

It is worth starting by thinking about why they are well-known. It might be that you have heard of a lender because they have a local branch or because they advertise. This will help their name to be more well-known but does not really tell you much else about them. It might be more likely that you know you have heard of them but you do not know why. This could mean that you have heard bad things about them but because you cannot remember why you know their name, then you could be putting your trust in someone that you should not be. It could be that a person you know used them and had a bad experience or they may have had a good one but if you cannot remember why you know them then you cannot be sure either way. Therefore, the fact that you have heard of a lender may not be a positive thing. It might be that you have heard bad things about them and so you need to consider why you have heard of them. If you cannot be sure, then it is worth ignoring the fact that you have heard of them and pretending that you have not when you are comparing them.

Will they charge less?

It can be tempting to think that if you have heard of a lender they will charge less. You may think that if they are well-known it will mean that they have more customers and therefore that will mean that they will be able to charge less as a result. However, this may not be the case. It could be that they advertise a lot so that people know their name. This costs money and so they will have to charge more in order to cover those advertising costs. They will hope that because people have heard of them and therefore might feel they can trust them better, that they will be prepared to pay more.  They may also hope that people will assume that they will provide a good service because they have a well-known name. However, because people have heard of them and many will not know why, they can afford to not treat their customers that well as they have such a large proportion of the market who potentially will pick them.

Is reputation important?

It is worth thinking about whether it is good to pick a lender with a good reputation or whether it does not really make a lot of difference. It is worth considering that what some people like and dislike about certain lenders will not be the same as what you like and dislike about them. You will need to think about what you want form a lender and whether the ones that you are comparing have what you are looking for. Whether they are well-known will not make a difference to the other features and factors that you are comparing. It is likely that you will be interested in the price, the terms of the loan, how quickly it can be arranged, when you have to repay it and what their customer service is like as well as other things. Whether you have heard of them or not will not make any difference to these things and so it is best to forget about this.

Conclusion

So, it is important to be aware of the fact that even if a company is well-known it does not mean that they are good or cheap. It is best to investigate them, as you should all lenders and come to your own conclusion based on the factors that are important to you. Think about what you think is important in a good lender and then you can use those factors to judge the different lenders that you are considering. It is best to use the things that you feel are important rather than considering whether they are well-known or not. There must be well-known brands that you are not keen on and this could be the same with a well-known lender. Of course, after research you may find that it looks like the most well-known will be the best one for you. This is fine, but just do not base your whole decision on whether they are well-known or not but take some time to check them out and think about what it is about each that you like and dislike. Then you can be confident that you have picked the very best lender to suit your specific lending needs.