Are Instant Payday Loans Right For You
People from all walks of life use instant payday loans for many different reasons. Some of the reasons anyone would use instant payday loans would be if they did not have any other means of borrowing money quickly to pay a utility bill, their mortgage, a bailiff or to repair their car, etc.
People who use instant payday loans often have a poor credit rating caused through missed or late payments, county court judgements, defaults, iva’s, etc or they do not have a credit card or their credit cards have maxed out on or they only have a debit card which only allows them to spend money if they have money in their bank account.
In most cases instant payday loans are used as quick cash or instant cash to help someone pay outstanding bills quickly. The borrower will be expected to repay the loan plus interest within 30 days of having received the initial sum of money. Borrowers normally opt to repay the money back when they next receive their pay or salary. The interest rate for this kind of borrowing is very high from 1,737% to 4,214% APR. You certainly would want to repay any instant payday loans as soon as possible those kind of interest rates.
Instant Payday Loans Can Help You Rebuild Your Credit Profile
If you do have a poor credit rating and you find it difficult to borrow money then by using instant payday loans you can actually start to rebuild your credit rating slowly. This will happen because every time you borrow money using instant payday loans; the loan is recorded at one or all of the credit reference agencies.
The next time you go to borrow money the finance lender can see from the credit reference agency that you have repaid your last loan on time and in full. Do not now rush out and borrow money using instant payday loans just because you think you can repair your credit rating as your previous defaults and missed payments do stay on your credit file for five years.
What Are The Benefits of Using Instant Payday Loans
- Instant payday loans provide a sort term loan for up to 30 days
- They are easy to apply for from the lenders.
- The money that you borrow is often in your bank account within an hour of your application being approved.
- The borrowing is normally secured against your next pay cheque, although lenders can sometimes ask for some form of collateral like your car if it unencumbered meaning it has no outstanding loans and is paid for.
- There is very little paperwork to do and it can often be done over the internet, by phone or in person.
- In some circumstances instant payday loans can be arranged without a credit check being done
The Disadvantage of Using Instant Payday Loans
- The cost of borrowing instant payday loans is very expensive up to 4,214% APR
- The term of borrowing money using instant payday loans is restricted to 30 days in most cases.
Do not borrow money using instant payday loans if you cannot afford to repay them within the time period. If you find that you are struggling to repay your loan back at the end of the month then do not go and borrow more money from another payday lender to pay back the first lender as it will end in disaster! If you’re instant payday loans are un-repayable then cease borrowing anymore money and contact a debt management company for help.