Payday Loans

Will a Payday Loan be useful for Giving me some Money to Spend on Holiday?

When we go away on holiday we often want some extra money to spend. It might be that we want to be able to eat out or buy snacks such as ice-cream. We might want to buy gifts for ourselves or for others to take home with is. We might want to buy drinks or to pay to go into places. If we have a family then we might want to be able to treat them all to things and that means that we will be spending more money than we might normally if we were not on holiday. However, if we do not have the money then we might consider borrowing it. A payday loan might be an option that you are looking for.

It has a number of advantages over other loans, but it may not be the most suitable for you. It is worth thinking about how it works and deciding whether you think that it will be the right choice for you.

  • No credit check – no credit check is done when you apply for a payday loan. This means that even if you have a poor credit record you will be able to get a payday loan. This can be extremely useful as with a poor credit record you may not have any other borrowing options available to you. It is worth noting though that as no credit check is done it can mean that the loans are dearer compared to lenders that only take on customers who have a good credit record. This is because they are taking on a bigger risk so they expect their customers to pay for that.
  • Pay off quickly – a payday loan has to be repaid within a few weeks of borrowing it. This means that the loan does not hang around for very long. This can be really great for anyone who does not like to be in debt for very long or who worries about managing multiple debt repayments. It is wise though to consider whether you will be able to afford to repay the loan so soon. When you return form holiday you may not have lots of money and therefore may find it tricky to manage for the month afterwards. If you have a payday loan to repay as well you could struggle a lot. Make sure that you check your financial situation before you take out the loan and you will be able to decide whether it might be something that you will be able to afford.
  • Borrow small amounts – with the payday loan you can only borrow small amounts of money. This might be perfect for you as you may not want that much money to take on holiday. However, think about how much you might need to spend on all of the things that you want. It might be that you are going to an area that is expensive or that you think you will be buying lots of things. It can be good that you will not be able to borrow too much as it is likely that you will spend any amount that you borrow and if you have less to choose from then you will have to be a bit more careful with what you are buying.
  • Quick to arrange – if you have left things until the last minute to arrange then a payday loan can really help. This is because they are really quick to arrange and so you will not have to worry about getting the money on time. You may even find a lender that will be able to get you the money within a few hours. Even if you are in a rush, do try to take some time to compare lenders though. You will find that they differ in cost and so you might be able to find one that offers much better value for money. Do remember though that cost is not the only feature you should be concerned with as you might also want to look at how good the sellers customer service is, what the company is like and what the reviews of them are like as well.

So, the payday loan could help you to get the money that you need for your holiday. It does work differently to other loans and that could mean it has advantages over them. However, it may also have some disadvantages. It is therefore important to compare it with other sorts of loans and you will then be able to decide whether it is the right lender for you. Make sure that you think about what you want from a loan and a lender and you will be able to see how well it fits in with your requirements compared to others.


Can I Pay for Anything with a Payday Loan?

There are some loans where you have to buy certain items with the money that you borrow. For example, you can only buy a home with a mortgage. However, there are also some loans where you can buy anything you like, such as when you use a credit card. With a payday loan it will fall into this category and you will not be restricted in what you spend the money on. However, it can be worth thinking hard about what you are going to use the money for as the loan may be more suitable for some uses than others.

What should I use the loan for?

So, it is worth thinking about what purchases are most suitable for using a payday loan for. Although there are no restrictions on what you can buy with it, due to the nature of the loan, you need to think about what uses it will be most suitable for.

  • Emergencies – if you need money really quickly, then a payday loan could be ideal. This is because they can be arranged really quickly. It can be possible, in some cases, to arrange a payday loan in just a few hours. This means that if you need to pay for something extremely quickly, you should have the money available for when you need it. Most other loans will take significantly longer to arrange and therefore you will get the money at a much later date.
  • When you can’t pass a credit check – payday lenders do not do credit checks. This means that if you have a poor credit record and you need to borrow money then you might be a bit stuck. However, a payday loan could just help you out as no credit check is done and therefore it does not matter whether or not you have a poor credit record.
  • Cheaper items – payday lenders will only lend up to £1,000 and if you are a first time borrower, they may only allow you to have a few hundred pounds. This means that if you want a more expensive item then a payday loan may not be right for you. However, it can sometimes be hard to find a loan that will only allow you to have a small amount of money and therefore a payday loan could be suitable in these circumstances. It is good not to be forced to borrow more than you need as it will take longer for you to repay it, you might struggle to repay it, you might get overwhelmed by the debt and you might end up having to pay extra charges because you cannot repay it. It is tempting to think that borrowing extra is good as you will be able to treat yourself to a few things, but so easy to forget how much extra it will cost you and the difficulties that might arise as a result of those additional costs.

What should I not use the loan for?

Although a payday loan can be useful in many circumstances, there are times when it is better not to use one.

  • Borrowing more than you can pay back – it is never wise to borrow more money than you can afford to repay. This is because you will end up having to pay extra charges for the loan. This could end up with you getting into a lot of financial trouble, perhaps using a loan to repay another loan and you getting overwhelmed by debt. So, make sure that you can afford to repay the loan before you sign up for it.
  • Things that are very expensive – as you can only borrow up to £1,000 when you take out a payday loan, you will not be able to use it for things that are really expensive. You might consider taking out more than one loan so that you can afford more, but as the loans have to be repaid in one lump sum, this could be too much for you to be able to afford. Therefore, it would be wise to look for a different type of loan where you repay in instalments, so that it is easier to manage those repayments.
  • Things you can save up for – if it is possible for you to save up for the item that you want, then it is better to wait and not borrow the money. Borrowing should only be done if there is no other way to afford something or in an emergency. Therefore, consider whether you can wait a while and put some money aside each month to pay for it. This is a method that takes some willpower as you will have to make sure that you do not spend the money on other things. Some people will find this easier than others.