To use a payday loan to pay off urgent expenses you will first need to add up the cost of repaying all your current expenses with a loan, including any fees which you may occur. Then you will need to take out your cash loan for a small enough amount to ensure the repayment is below that of all your current loans. The longer you choose to pay the money back over, the lower your payment will be. However, proceed with caution, because this means you will be paying more back to cover the interest payments, which is effectively dead money.
If you do want to apply with your partner and get a large payday loan, take consideration of their credit score. If it’s higher than yours, then they may want to apply for the payday loan themselves. If the score is worse, you should beware that this will affect what kind of deal you will be able to get. It might be worth waiting a while before taking out a payday loan, and checking your partners credit score for areas it can be improved.
This is better for people with a less than good credit rating, as you can usually get the same APR from a personal loan otherwise. But if you need a few hundred pounds really quickly, in hours or a day or two, then you may want to consider a cash advance. These are by far best apt for really short term borrowing.
These are a special type of loan available to those seeking higher education in the United Kingdom. The interest rate is set at the rate of inflation, which essentially means you repay the same amount as you borrowed. You also only repay the loan if you earn over a certain amount each year. However you can only borrow this way if you are studying.
If you have a bad credit rating, or need to borrow larger amounts over £1,000 then a payday loan won’t be best for you. These types of loan cannot be paid over a period longer than a month or two, but are perfect for short-term finance. This means if you can’t pay the money back then the lender can force you to sell your home in order to pay the money back. So it’s vitally important to plan how you will pay back the loan and that you think you can afford the repayments. Weigh up whether you want to pay more over a shorter period, or pay less over a long period, but remember you pay much more back in interest.
The final major reason is credit status. Lenders prefer people with a good credit status when lending unsecured. This is because they are more likely to pay the money back. So if your status is not great then you have a better chance of borrowing money with a second charge loan. You may even be able to beat the best unsecured rate available if you borrow this way.