It is a good idea to make sure that you fully understand a loan, before you decide whether it is for you. This is the only way that you can guarantee that you will get good value for money from the loan that you are taking out. So, if you are wondering whether a payday loan is just for bad credit, it indicates that you do not know lots about that type f loan. Whilst that is not your fault, because we do not get taught this sort of thing in school or adult life, it is luckily something that you can find out. There are places that you can go to learn more about money, such as websites and you can also teach yourself by looking at lender’s websites.
Who are Payday Loans for?
It is good idea to think about what sorts of people might take out a payday loan, based on their main features. It is right that they will lend to people who do not have a good credit record and so those people will be one of the categories that will find the loans useful. However, there are other features which might be useful to borrowers even if they do not have a poor credit record. For example, the loans can be arranged very quickly, sometimes within a few hours. This means that for people that do not have an overdraft facility or credit card or have maxed them out, they might find that they will need to look at something quick, like a payday loan if they do need money in an emergency. With a payday loan you will also repay very quickly. The idea is that the money keeps you going until you next get paid and then you will repay what you have borrowed in full. This means that the loan might only last a few weeks or even days. This can be very attractive to people who do not like being in debt for very long. They may be able to use an overdraft, but perhaps do not trust themselves to have access to that money all of the time because they might keep spending it. The same with a credit card and so they may see the payday loan as a better option. This could also be similar in the fact that with a payday loan you can only borrow smaller amounts. This means that if you do not want a big loan it could be handy. Again, you might consider a credit card or overdraft, but they may have very big credit limits and perhaps you may not trust yourself with that sort of money and feel that you need to just borrow small amounts so that you are sure that you stay in control.
Are They Right for me?
Whether they will work for you will depend on your personal situation and what you are looking for in a loan. It is important to think about what you are looking for with regards to how much you want to borrow, how much you are prepared to pay for the loan, how long you want it to last and whether you have access to all loans with regards to your credit rating. It is also important to think about what you are looking for in a lender too as they vary as well. So, consider whether this matters to you and if you want one that is well known, has good reviews, you have used before, you have heard of, you have seen adverts for or whether you are not concerned about these factors.