When to take out a Payday Loan?

Payday loans do get a very bad press but there are still quite a lot of people who take them out. It is important to understand what they are and who they are aimed at so that you can consider how relevant they are for you.

One main attraction of the payday loan is that they do not do a credit check. This means that if you already have a bad credit record, you will not need to worry about being turned down for the loan. Most lenders will check your credit record and may not take you on if they think that you are a big lending risk. Without these checks being done, more people are likely to be accepted for the loan.

Online payday loans can also be arranged very quickly. Sometimes it can only take a few hours to organise, which is quicker than some other types of loan. However, it can be possible to get store card approval very quickly, although they normally do a credit check. You may also be able to organise an overdraft with your bank over the telephone and they may be able to get it sorted for you straight away. So even if time is an issue, there may be other options for you.

A payday loan can be expensive, but you do not borrow the money for long. So if you have no other borrowing options or none that are so cheap, then it could be the way to go. You will need to be over 18 and a UK resident. In most cases you will need a job or at least a regular income.

Any loan should only be considered in an emergency. If there is no other way that you can get the money and it is vital that you have it, then a loan is an option. Take as much time as you can to look at all your options and consider the costs of the loan. Only take it out if there is nothing else that you can do to get the money and it is critical that you have the money right then. If you can possibly wait until you are next paid, then do so. If it is a bill you need to pay, try negotiating with the person you owe the money to and see if they will let you delay until you are next paid. If it is a big company, they may be more helpful than you might expect. It can also be worth asking your employer for a pay advance. Some of them will allow you to have a portion of your salary early if you need financial help.