Is a Payday Loan Good for Paying Bills?
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.
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.
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.