Have you ever found yourself in a very tight situation financially and where you’ve run out of options? Payday loans can help with your borrowing needs such you find yourself in a similar circumstance.
What are payday loans, anyway? Payday loans are short-term cash advances you can apply for from a lending services company. This type of loan is recommended for people who are short of money and only need a small amount of money for an emergency or to get by till the next paycheck. It’s repaid with interest and on schedule parallel to the borrower’s pay date.
Payday loans have garnered a bad reputation over the years. However, for those with no other options to resort to, this could be their best at most.
If you can find other ways of making or borrowing money, by all means. But if you have no other choice, here are three reasonable circumstances where you could consider applying for a payday loan.
Maxed out options
Before surrendering to payday loans, try borrowing from friends, family, and relatives. If that doesn’t work, look for other methods in which you can earn money such as selling some of your things, dogsitting, offering your services (e.g. lawn mowing) to your neighbors, and the works. If you are really left with no other options, only then should you consider payday loans.
Do note that applying for a payday loan means repaying with an interest fee. Before you borrow, do know the terms and make sure that you will be able to repay and not fall into a debt cycle. Bear in mind that this shouldn’t be a regular option, but only a last resort.
Cheaper than penalties
Surprise and unexpected bills can be daunting and stressful. But what’s far scarier is the crippling anxiety you feel when you realize you have nothing left, no one to borrow from, and more/higher bills to pay. A one-time small loan enough to cover for your monthly dues or for any emergency is better than having to pay for any additional fees of penalties due to missed payments.
Bad credit history
A lot of people went through with this, it isn’t common. Obtaining a bad credit can really strain your chances of getting approved or at the very least, qualify for any form of loan. It limits your loan options, notably if you have a strong history of failure to repay.
Lending services who offer payday loans are not as strict as banks when it comes to applying for loans. Yes, credit history still matters and is a huge factor. However, they can be more considerate than banks.
Before you go looking for a lender and apply for a payday loan, know that it is your responsibility to repay and on time. Otherwise, you’ll just find yourself with a lot more penalty fees at hand. Know the risks and decide wisely.
About the author: Chie has spent time figuring out ways on saving money and stepping away from her go-to retail stores. She then became a writer for QuickCash Australia which offers hassle-free loans services.