• Payday Loans

    Are Payday Loans Easy to Arrange?

    There are more and more payday loans appearing on the market these days but there are still a lot of people that are not sure what they are about or how they work. This may mean that you find yourself wondering whether they are easy to arrange. Many loans are tricky to get and so this might put you off but it is worth knowing what happens with a payday loan so that you can decide if it is right for you.

    Credit record

    You may be put off applying for some loan types because you are concerned that you will be turned down for it because you do not have a good credit record. You can check your own credit record free of charge and so you might want to take a look to see whether this might be the case. Check that all of the information is correct. It can be hard to try to judge whether it is good or bad though as different lenders will use different factors to judge you. However, you should be able to get an idea by looking at it.

    If you fear that your credit record will mean that you will not get a loan at all or will end up having to pay really high interest for a loan as you would be considered to be high risk, then it is worth considering loans where no credit check is done. Payday loans do not do a credit check. This is because they started as a result of lenders seeing that there was a gap in the market for a lender for those with poor credit records. They felt that those people were missing out on an opportunity to borrow money and so they provided them with one. This means that they do no credit check and so will lend regardless of whether you have a good or bad credit record.

    Comparison

    The part of the application process that is likely to take the longest is comparing the loans in order to choose the one that is most suitable for you. This is something which is important to ensure that you get the loan which suits your needs the best. You might feel that this will be a long process. However, there are comparison websites which make it quicker and as long as you have a good idea of what you are looking for in a loan then you should be able to find what you are looking for pretty quickly.

    Paperwork

    Applying for loans can feel like a big hassle with regards to all of the paperwork that has to be completed and signed. It can be so off-putting that you may even decide to just forget the idea of a loan altogether. With a payday loan the application process is kept as simple as possible. You can apply online or over the telephone so you do not have to even fill out a physical form. This can make this a lot easier and a lot less daunting.

    Application

    Applying is very quick as well. Questions are kept to a minimum and the whole process does not take very long. You will need to provide some documents and information such as details of when you get paid and your bank details but those should be easy for you to find. The process is kept as simple as possible so that it is not stressful for you.

    Speed

    The speed of organising the loans is a big plus for many people. The application process is simple so will not take you much time and you should find out very quickly whether you have been accepted for a loan and how much the lender is prepared to let you have. For some lenders this can happen so quickly that you might have the money in your bank account within a few hours of starting the application process. This is significantly quicker than many other types of loan. Some may take a little longer, but normally the whole process will never take more than a few days. You will even find that some lenders have staff available all of the time and so even if it is the weekend or the middle of the night you may still be able to get the money that you need.

    Conclusion

    So compared with many other lenders, a payday lender will make the loan application process very simple. They try to minimise what you have to do so that it is easy for you and the process is extremely fast. This means that if you need money in a hurry then this can be a really useful option for you. It is also really suitable for anyone who really dislikes filling out forms and paperwork as this will be kept to a minimum and in some cases there will no need to write very much at all.

  • Payday Loans

    Can I use a Payday Loan to pay off my Credit Card?

    If you have a credit card that needs paying and you do not have the money to pay it then you might consider whether to use a payday loan to repay it instead. There are pros and cons to doing this and it is worth thinking hard about this decision before rushing into anything. You need to consider a lot of factors so that you know whether it will be right for you.

    Cost

    The cost can be tricky to work out. With payday loan it is very easy. You will find that there is a calculator on the lenders website and so you will need to put in relevant information, such as how much you want to borrow and how long for. This will allow you to understand exactly how much you will be expected to repay and when. You will normally have to repay the loan in a lump sum on the day that you are paid. With a credit card you do not have a fixed repayment schedule. You will be expected to pay a minimum back each month and then it will be up to you when you repay the main balance. This can be a lot more expensive if you only repay the minimum and so if you pay it all off with the payday loan then you could save money. However, it will be cheaper to pay off the credit card with your own money directly, rather than borrowing using a payday loan, repaying the card and then repaying the loan. If you have the money available to repay the loan, then you can use it to directly repay the credit card. You do need to have good self-discipline to pay off the credit card and if you fear you may not have it then this could be a reason for choosing the payday loan option.

    Ease of Repayment

    It is worth looking at how easy each of the options is with regards to repayment. For some people it will be a lot easier if they have a more flexible repayment schedule. This is because they cannot afford to repay a lump sum all at once or they do not have a regular income. It is worth thinking about what might work for you. You may need to look back at previous bank statements and calculate how much you would normally afford to repay each month and perhaps think about whether it would be possible for you to budget in order to afford it better. Once you have calculated what you can afford you will then be able to work out what might be best with regards to finding a repayment schedule that will work with your budget.

    Term

    If you have a payday loan then you will have to repay it really quickly. This can suit a lot of people if they prefer not to be in debt and to have their debt paid off really quickly. The loan will usually only last for a few weeks and then you will be free of it. With a credit card the term of the loan will vary depending on how long you choose to keep it for. You could choose to pay it off very quickly and be free of debt, in fact many people will pay off the full balance that they owe on their credit card each month and will never be charged interest on it.

    Convenience

    It is worth also thinking about which will be most convenient to you. Think about whether you will want to repay the loan quickly which will happen with a payday loan and you will not really have a choice in this unless you pay a fee. If you would rather have more time to pay and spread the payments then you may find this more convenient and so prefer to do this.

    Conclusion

    A payday loan can be used for any purpose, including repaying a loan such as a credit card. However, you will need to think about whether this will be a good use of the money. It is well worth calculating the cost of this and considering any other options that you have to work out whether it is the right thing to do for you. It might be that you feel you will not repay the credit card as there is no urgency with doing so, but if you take out a payday loan then you will have to repay it unless you want to pay extra fees and therefore it will almost force you to make sure that you repay your loan. It could be easier to just set up a direct debit to repay your credit card in full each month, but you will need to make sure that you have the money available to cover the cost of this repayment.