If you need a rent deposit then you may need to be prepared
to gather together a significant chunk of money. If you do not have any savings
or enough savings and you have found the property that you really want, then
you will need to think about how you will be able to get together enough money
in order to pay for the deposit. There are many possible options for finding
money. One of these is a payday loan. If you are considering this it is worth
making sure that it is the right decision for you.
Will it be enough?
The first thing to check with a payday lender is whether you will be bale to borrow enough money. Obviously how much you need will depend on how much the deposit needs to be and how much you already have. Payday lenders vary in the amount that they are prepared to lend you. They will often be prepared to lend you higher amounts if you have borrowed from them before and repaid it successfully. They will normally only lend up to £1000 anyway. You may be tempted to get loans from more than one lender so that it can all add up to the amount that you need. It could be a good solution but make sure that you will be able to repay it if you do it this way.
Can I repay it?
A payday loan will need to be repaid in full on your next payday. This means that you will need to make sure that you have the money available to be able to do this. This is something that you should contemplate seriously. It is easy to just think that it will all be fine and that you will manage but this should be calculated. Think about how much you earn and spend in a typical month and whether you will be left with enough to pay for the loan. Consider whether once you have paid the loan, whether you will still have enough money left to be able to afford the other things that you will need for the month. If you are not sure of the figures then look them up. You will be able to find out exactly how much you will need to repay to the lender by using the calculator on their website. This will enable you to enter how much you intend to borrow and how long for and it will let you know how much you will need to repay in total on your payday. Then you will need to look at whether you will have the available money to be able to afford the loan repayment. Look at your bank statements and you will be able to see how much money you normally have available and consider whether this will be enough to cover the cost of the loan. You might find that if it is not enough that there will be ways that you can make sure that you do have enough money. It could be that you can spend less on other things or it could be that you could earn more money. If this is the case then you need to make sure that you have a plan as to how you are going to manage and make sure that you stick to it. It can be worth writing down a plan on what you are planning on doing so that you do not forget and are more likely to stick to it. Make sure that you are confident that you will be able to stick to the plan. If you do not, you will end up not being able to afford to repay the loan and therefore having extra charges to pay.
Do I qualify?
You may wonder whether you qualify for this type of loan. You may feel that because you have a poor credit record you will not be able to borrow money. However, a payday loan has no credit checks and so it will not matter if you have a poor credit record. You will also find that they will not mind if you do have a good credit record as they will not check, so the loans are not just for those with a poor credit record. You will be able to take advantage of the fact that they can be arranged quickly and so you will be able to get the money fast. There are a few restrictions but they are very simple, you just need to be over 18, a UK resident, have a regular income and a UK bank account. This means that most people who need money for a house deposit are likely to qualify for a loan like this, so you will not need to worry.
If you need to pay to repair your car, then you might be
looking for options to find the money. Payday loans could be an option for you
and it is wise to look into things harder when making this decision.
Is the repair necessary?
It is worth starting with thinking about whether the repair is really necessary. If it is something which means that until it is done you will not be able to drive, then it could be necessary, assuming that there is no way that you can go without a car. It is worth considering though, whether you could just go without the car and save a lot of money. If you need it for work or other necessary journeys then it will not be an option of course.
Also consider whether the car will still work without the
repair. It will depend on what it is but if it needs work on the entertainment
system, air conditioning or something like this, then it may not be necessary
for the work to be done and you may not bother. If it is something that can
wait a while, then it could give you time to save up the money that you need to
pay for the repair and therefore you may not need to borrow it and pay the
extra costs associated with borrowing money.
Can I Save up?
Think about whether saving up is a practical option for you. You will know whether saving up is something that you will realistically do. Some people are good at saving up and they will easily make sure that they put away some money each month until they have what they need. Some people are not so good though and they will tend to spend the money and therefore will not manage to build up a pot of money to pay for what they need. It is good to think about whether you think that you will be capable of saving up or whether it will be better for you to borrow the money because saving is just not a realistic option for you.
What loan options are there?
If you cannot wait to save up or you are not good at saving, then you will need to look at all of the loan options available to you. If you need the money fast, then it could be that a payday loan will be a good option for you because it is quick to arrange. You could have the money within a few days or even a few hours, depending on which lender you choose to use. Obviously, this could have an impact on your decision as you may need the car repair urgently so that you can drive to work. It is also worth noting that payday lenders do no credit check and so if you have a poor credit record, there is still a chance that you will be accepted for a loan. This can be important for some people as well as not only will it increase their chances of getting a loan but it will mean they will not have to waste time applying for loans that they get turned down for. Being turned down for loans also has a negative impact on a credit record and so it could make your chances of borrowing even worse. If you already have an arranged form of borrowing such as a credit card or an overdraft then this could be a source of borrowing that you could use which will allow you to get the money without having to arrange another loan.
Will a payday loan work for me?
It is also worth considering whether a payday loan will work for you. If you do not know much about them, it is worth finding out how they work first. It is key to understand about the repayment as it is very different to other types of loans and if you cannot manage your repayment you will end up having to pay extra charges. Therefore, it is very important to make sure that you are completely sure that you will be able to repay the loan. You can calculate how much you will have to repay on the lenders website and this should allow you to be able to calculate whether this is an amount that you will be able to afford. Look at your previous bank statements and you will be able to see whether you would normally have enough money to pay for the loan and if not, whether there is anything that you can do to make sure that you will have the money. You might need to budget carefully and keep your spending down to a minimum or you may have to find some ways of earning some extra money so that you can put that towards paying it back.