There are unique circumstances that warrant you choosing a payday loan over any other types of loans. In fact, payday loans are ideal for almost all kinds of situations that warrant people to take out short term loans. If you’re wondering if you should take out a payday loan or not, look no further. Here are the top 5 signs you need a payday loan.
1. You are tired of high-interest debt
If you’re looking for affordable short-term debt, that’s a clear sign that you need a payday loan. Personal loan and credit card debt are very expensive compared to payday loans. The FCA highly regulates the payday loan sector in the UK. There are interest caps that ensure payday loan borrowers never pay more than they have to. Furthermore, with interest rates caped at 0.8% by the FCA and there being many affordable payday loan lenders, there is no reason why you should continue using other high-interest debt.
2. You have emergency expenses to settle
Payday loans are the best sources of short-term cash for catering for emergency cash needs. Emergency expenses range from unexpected bills to an expensive car repair. Payday loans can also come in handy when you have emergency home repairs i.e. a damaged roof after a storm. When faced by a crisis, there are very few places you can turn to for quick cash. Payday loans are the most favourable sources of emergency cash because they are readily available. You can get a payday loan instantly (a few minutes after your application is approved). It takes longer to borrow personal loans or obtain a credit card or even borrow from friends. If you have an emergency expense that can’t wait, this is a sure sign that you need a payday loan.
3. When you want to enjoy unmatched borrowing convenience
Online payday loans are the most convenient types of short term loans available today. Unlike other types of loans available today, payday loans can be applied for and received 100% online. You just need to fill in a simple online application form and submit it. The best payday loan lenders in the UK process loan applications within a few minutes. If your application is successful, your money is wired to your bank account instantly. You can also make enquiries online. Payday loans offer unmatched convenience. You don’t need to waste any time or effort visiting a bank. Everything can be done online including managing your loan. If you want to enjoy unmatched borrowing convenience, this is another sure sign you need a payday loan as opposed to any other types of short term loans.
4. When you want to boost your credit score
Payday loans are the best types of loans to use to boost your credit score. The loans are readily available, easy to get and manage. Payday loans are also affordable provided you choose a reputable lender. The loans are also available to individuals with bad credit. Unlike other loans, you won’t be overcharged because you have a bad credit score. Taking a payday loan is a great way of boosting your credit score as long as you meet your repayment obligations. Personal loans have a tedious application process. They also tend to be expensive. This makes them less attractive if your sole purpose of taking out a loan is to boost credit.
5. You want variety/unmatched comparison
Shopping for loans traditionally is very limiting. If you are fed up of being confined to a few lenders, this is a sure sign that you need to consider using a payday loan broker to obtain a short term loan. There are many payday loan lenders in the UK most of whom offer online payday loans. As a result, by using a payday loan broker you only need to fill in one application to apply to most payday lenders in the UK.
Payday loans offer very many benefits over typical short term loans. If you want to enjoy unmatched convenience, variety, comparison and low-interest rate charges, this is a sure sign that you need a payday loan over conventional short-term loans. You also need a payday loan when you want to take on debt for the sole purpose of boosting your credit. Payday loans also need to be your #1 source of cash when you are faced with emergency expenses because you can get a payday loan within minutes.