There are so many different things to learn about payday loans that you will definitely want to take the time to look into them before deciding whether or not you want to even apply for one. Each year millions of people across the country apply for payday loans because they are such a convenient way to get money for emergency expenses in a hurry. The more time you take to learn about these loans, the better of a decision you will ultimately make.
The Payback Period
There is typically a 2 week payback period for payday loans, so you will basically have until your next pay check to pay back the money that you borrow. The specific date that you will need to pay back the loan will be mentioned somewhere in the contract that you will be required to sign. The point is that this is a short-term loan, and you will need to keep that in mind.
A payday loan typically has a maximum borrowing amount of around £2,000. The maximum amount of money that you are able to borrow from one of these lenders will depend on a few different things, including how much money you make from your job as well as what your credit is like. All payday loan lenders have a maximum amount that anyone can borrow from them, but some people can get more than others. The more money you make and the better your credit is, the better your chances will be of getting the amount you need. The average person borrows anywhere from £200 to £1,200 with a payday loan.
While it’s true that payday loans tend to have a fairly high interest rate, some people will pay more money in interest than others. Your credit score will play a fairly large role in determining how much interest you are going to end up paying with your loan, though it will also depend on where you live. Those who have very good credit typically don’t pay a lot of interest on their loans. This will also depend on the lender you choose, so you will want to remember that as well.
Who is a Payday Loan for?
A payday loan can be extremely useful for many people, including those who have some sort of emergency expense they need to pay off. If there is a hole in your roof that you need to get fixed or perhaps a sudden medical bill that you have to pay, one of these loans could be of great help. People with good and bad credit can get these loans, but it’s important to consider that there are never any guarantees when it comes to getting approved.
Benefits of Payday Loans
You will quickly discover that there are a lot of different benefits associated with payday loans, and it’s important that you know what some of them are before deciding whether or not to apply for one.
Quick Cash when you need it
One of the great things about payday loans is the fact that they can provide you with the quick cash you need when you need it. Most people who are approved for one of these loans get their funds within 24-48 hours at the latest. This means that you won’t have to worry about having to wait a long time to get your money if you are approved for a payday loan.
Get approved even with bad credit
While there are no guarantees that you will get approved for a payday loan, lots of people with low credit scores have gotten them. This means that you will definitely want to at least try applying for a payday loan even if you don’t think you will be approved because of your credit.
No questions asked
Another great thing about payday loans is that most lenders won’t even ask you what you are plan on using the money for. While you should definitely only use the money for something you absolutely need, it’s still nice that you won’t have to answer a lot of questions when it comes to how you are going to use the funds you borrow.