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.