When & When Not to Use A Payday Loan
Best and Worst Situations to Use a Payday Loan
A payday loan is the smallest type of loan you can get. It also has the quickest repayment schedule, with lenders asking for your payment at your next pay date. Though payday loans are regulated under state laws, they are one of the easiest loans to qualify for. Even if you have bad credit, you may be able to take out a payday loan. You will need to have proper identification, proof of income, and a bank account.
Why Do People Use Payday Loans?
Just because you can take out a payday loan doesn’t mean that you should. The following are some examples of the best and worst times a payday loan could benefit you, and times where you might want to consider other options:
Best: Urgent Expenses
When you have an expensive purchase that can’t be put off, such as new tires for your car or a computer for school, a payday loan can help you buy the item you need without having to put it off until your next paycheck.1 If you break your phone and need a new one quickly, this would be a good reason to take out a payday loan.
Worst: Nonessential Purchases
Maybe you’ve had your eye on new clothes or a kitchen appliance, but it’s too expensive. Payday loans are meant to cover needs that just can’t wait. If it can wait, this may not be the best time to take out a loan. Instead, work on your budget and put money aside each month to save up for these items.
Best: Unexpected Medical Treatment
When it comes to your health, putting off an examination or treatment until you have the money for it is not a good idea. This is when taking out a payday loan could come in handy. The cash from your loan allows you to tackle any health concerns without having to wait for a future paycheck.2 With a loan, you might be able to address or reverse a serious medical issue before it gets worse.
Worst: Travel
Overworked and really need a vacation? You might be tempted to book a trip you can’t afford. Think twice before you buy that plane ticket with a payday loan. Instead of getting yourself into debt by taking out a loan, follow our tips for traveling on a budget so you can find the best deal on the vacation you want.
Best: Unexpected Utility Bills
Utility costs can change greatly depending on the season and your usage. During the hottest summer or coldest winter days, you might open a bill and find that it’s much more expensive than you thought it would be. Since payday loans can be taken out in small amounts, borrowing $100 to cover your utilities can help you avoid late fees on a bill that’s larger than expected, or reconnect fees.2
How Do Payday Loans Work?
It’s important to evaluate your situation before you decide to get a loan, but if you’re in a sticky situation and you need cash fast, a payday loan can be a great solution. You can borrow the money you need in a small amount and get it quickly, often within one business day. You don’t need great credit to apply, and you can get approved fast with our easy online application.
At LendNation, we’ve got a positive track record of assisting you and customers like you with personal loan needs for over 30 years. Plus, our quality customer service ensures you’re treated like a friend, not a number. Start your application today to see if you qualify for a payday loan.
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