How Easy is a Payday Loan to Use?

There are some people that do not like the idea of borrowing money as they feel that it might be complex in some way. It is understandable that people could be concerned about this especially if they are not very numerate or they do not like paperwork. However, it is worth knowing that payday loans are not only easy to set up but they are also easy to use as well.

How to apply for a payday loan

Applying for some loans can be really tedious as you have to fill out lots of paperwork or see a manager to discuss it. This can be really off-putting and it is not surprising that it can cause a lot of people stress and they decide that getting a loan is just too much hassle and it might even be scary for some people. The great thing about a payday loan is that you do not have to do this. You will be able to either apply online or over the telephone. If you do it on the phone, you will not even have to fill out any paperwork at all. Online you will just have to answer a few simple questions and give them some information so that they can check out your details. It is pretty simple to do and will not take very long. It is certainly not something that you will need to be worried about and it will be easy. The fear of being rejected when you apply for a loan can also be a problem for some people. This is something which is very real and completely understandable not only because it can feel bad that you are not seen as a good candidate for a loan but also because it is not good for your credit record. However, not many people are turned down for payday loans as they do not do a credit check. Therefore even if you have a poor credit record you are still likely to be accepted for the loan and this means that you should not have a fear of being rejected.

How to use a payday loan

A payday loan such as those offered by reputable lenders such as Emu.co.uk works very simply. You will just need to apply and provide the lender with your bank details. Then, once they have processed your application, they will transfer the money into your bank account. Then you will be able to spend it as you see fit, using it to pay bills or drawing out the cash and spending it or whatever. You will find this process all very easy. Repayment is very simple as well. The lender will set up a direct debit on your pay day. This means that on that day the money that you owe will automatically leave your account and be sent to the lender. This will usually be for the full amount that you borrowed and the interest as well. This lump sum will be sent and you will then not need to worry at all about the repayment of the loan. This means that there is no risk that you will forget to pay it and get a fee for forgetting this due to a mistake on your behalf. You will need to just make sure that there is enough money available in the account to cover the cost of the repayment. The reason for setting this up for pay day means that you have the very best chance of having the money available to repay it. However, it is wise to just make sure that you will. If you have lots of other direct debits coming out on that day or you have an overdraft on the account that will be repaid, then there is a risk that the money will not be available. Make sure that you just check, before you take out the loan, that you will be able to make the repayment. By looking at past bank statements you will be able to see whether you would normally have this money available and you should be able to think about whether you will be able to manage the repayment. Do make sure that you also account for any payments that might come out between the time you take out the loan and the time you pay it back that might be unusual or irregular – perhaps things you pay annually that you might not remember have to be paid, for example.

So, as you can see, payday loans are really easy. They are very easy to set up, probably a lot easier than many other types of loan. They are also very easy once you have been approved, you have to do very little and do not even really have to remember to make the repayment as it will all be organised for you. They are very straightforward and this can be much of the appeal for many people with this type of loan.

Will a Payday Loan be Useful to Pay Bills With?

If you are struggling to pay bills then you maybe considering using a payday loan so that you can make it easier to afford them. Although there are no restrictions on what you can use a payday loan for, you may be wise to think about your various options before deciding on using one to pay your bills. This is because, like all loans, there will be interest to pay and it will mean that your loans are more expensive to repay, if you include the loan costs, compared to how much they would cost if you did not use the loan.

Advantages of payday loans

Payday loans have advantages over many other types of lending and it is worth knowing about those advantages so that you can decide whether they might be a good option for you. They can be very quick and easy to arrange which means that you can get the money that you need really quickly. It can sometimes just take a few hours form application to the money arriving in your bank account. This means that if you want to pay your bills very soon, then this could be really handy. There is no credit check either, which not only speeds up the application process but also means that you can still apply even if you have a poor credit record and know that it will not affect whether or not you get accepted.  A payday loan will often lend up to £1,000 which means that you should be able to easily borrow enough money to be able to pay for your bills. Usually, there is only one payment necessary for a payday loan. This not only comes on your pay day when you have plenty of money to make the payment, but it also is all repaid in one go which means that you do not have to worry about covering multiple repayments. The loan is paid off in full quickly and the loan is soon eliminated.

Possible alternatives

There are alternative ways that you could finance your bill payments which could suit you better. Whether they are better for you will depend on your individual circumstances. It could be that you have some savings that you could use to pay for the bills so that you do not have to borrow. It could be that you have other borrowing options that you could consider. There are different options that could be available to you but it will depend on your credit rating and how much money you want to borrow as well as how much time you have to be able to organise a loan. You might be able to use an overdraft that you have already set up or a credit card that you already have, for example, although if you do not have these then they may take too long to arrange or you may feel that they will be too expensive. Other types of loans may be for too much money or you may feel that they are not suitable. 

Things to check

If you do decide that a payday loan looks like a good option for you then you need to check a few things first in order to make sure that it will work for you. Make sure that you are aware of the cost of the payday loan and are happy with paying that extra. All loans cost money of course and it is really easy to find out how much a payday loan costs by looking on the lender’s website. There will be a calculator where you can work out how much you will have to repay based on the amount that you have borrowed and you will be able to use that figure to easily calculate the cost of the loan. It is also good to use this figure to work out whether you will be able to afford to repay the loan. You need to work out whether you can afford to make this repayment as well. It is worth taking a look at your bank balance and seeing how much money you have coming in and going out and thinking about whether you will have enough to make the repayment and cope with all of your other expenses as well. It is wise to also look at how much it will cost if you miss a repayment. This will vary between the different lenders and so you will need to compare them. You may think that this will not be necessary because you are confident that you will be able to repay on time. However, although you should be confident about this it is important to make sure that you are aware of these costs. It means that if you are comparing two lenders that are very similar you will have some other way to pick between them. Also, if there is one that is very much higher than the rest then you may wish to disregard this one just in case, you do happen to not manage to make the repayment. It is best to try hard not to miss your repayment and knowing how expensive this could be should motivate you to be careful. However, if you do miss a repayment you want to be sure that it will not cost you more than necessary.