Can I use my Payday Loan to buy new White Goods?

If you need to buy a new white good, such as a washing machine or fridge, it could be very urgent that you get one. If it has completely broken down then you will need to replace it quickly and this may mean that you will have to find the money straight away. Not everyone will have savings to fall back on or a credit card or overdraft to use to pay for it. This is where the option of a payday loan might be considered.

Advantages of a payday loan

Payday loans such as those offered by can be quite different to other types of loan. It is good to understand how they work so that you can identify why they might be a good option for you. They can be arranged really quickly, sometimes within a few hours which makes them ideal for an emergency purchase, such as buying a fridge to replace a broken one. They can even be arranged at weekends or evenings in some cases. There is also no credit check. This means that it is possible to get a loan approved even if you have a poor credit record. This can be very useful for anyone who cannot get money anywhere else. The loans are repaid very quickly. You have to repay them in a lump sum when you have your next pay day. This means that the loan does not last very long at all. The fact that you repay it on your pay day means that you will have a good chance of the money being available for you to repay the loan easily.

What should it be used for?

Sometimes loans have a specific purpose, such as a mortgage being designed to buy a home, but this is not the case with a payday loan. There are really designed for emergency use and that is why they can be arranged so quickly. If you need to replace a white good, it is likely that you will not be able to wait very long before you get it. Going without a fridge or freezer is very hard and even coping without a cooker or washing machine can be extremely difficult, therefore it is likely that you will want to get it as soon as you can. Therefore, it could be considered to be an emergency purchase anyway.

Is it right for me?

It is good to question whether this type of loan is right for you. You will need to think about whether you will be happy with the way that it works. Compare it to other options that you have and look at the cost as well as other features to decide whether it is the right option. Obviously, many of us will want to make sure that the loan offers us good value for money. You need the money quickly and so it could be that you will be prepared to pay extra in order to get it. All loans will have a cost and so wherever you are borrowing from you will need to pay. Some will cost more than others and it is worth comparing the different options that you have. However, most loans will take longer to arrange than a payday loan and so it may be that you will have to pay more in order to get the money more quickly.

It is worth thinking about whether you are happy with the one-off payment, for example. Although for many this is an advantage, because the loan disappears quickly, it will mean that you will have to cope with making just the one payment for the loan. This can mean that you will have to find a lot of money in one go and then also cope with the rest of your payments for the month. If you do not have a lot of income and have lots of payments to make, it could make it very difficult to manage. It is worth taking a look at your bank statements and working out how you will manage. There are many things you can do such as borrowing less, spending less and earning more which could help you to make it work, but it is important to have a plan. Think about whether you have anything to sell that could raise some extra money, whether you can reduce your spending in some areas or if you can pick up some extra work to get more money. There are many options that you could consider, it is just a matter of finding the ones that work best for you.

Also consider what the lenders are like. You may have specific requirements for lenders that you use and you will need to make sure that they fit these. It is likely that you will find a payday lender that will though as there are so many to choose from.

Payday Loans

Are Payday Loans only for Those with a Poor Credit Rating?

Most people know that payday loans have no credit check and therefore they might assume that this means that they are only for those people with a poor credit rating. Although they were originally designed for those with a poor credit rating, it does not mean that they are exclusively for these people. It is worth noting that as no credit check is done the lender will have no idea whether you have a poor credit rating or not. Therefore, there are other features that payday loans have which might benefit people even if they do have a good credit rating.

  • They are quick to arrange – a payday loan can be very quick to arrange. This means that if you need money really quickly they can be ideal. Many loans will take a long time to organise with various bits of paperwork being posted back and forth. With a payday loan you can just apply over the telephone or online. The process is fast and it can be possible to get the money that you need within a few hours. Some lenders may take a few days, but this can still be quicker than a conventional loan. If you have a real emergency, then you may not be able to wait much longer for the money and therefore having this option of being able to get your money really quickly can be extremely beneficial.
  • They are for small amounts of money – as the loans are for small amounts of money they can be beneficial to some people. Often loan amounts can be high which means that you have to borrow more than you need. This leads to you having to repay over a long period of time or having large repayment amounts. This can mean that it is harder to repay. It can also be expensive if it is spread over a long period as the interest will be being charged for longer. By borrowing just a small amount of money you will be able to borrow less and the repayment should be more manageable.
  • They are repaid quickly – payday loans normally have to be repaid within a few weeks of taking them out. You will normally repay the loan in full on your next payday and so this is likely to be a few weeks away. This means a loan is likely to last less than a week.  This can mean that they are nice and easy to repay and are not stressful as the loan is cleared quickly. Many people would rather have a loan for just a small period of time and so this can really benefit them.
  • They are simple – payday loans are really simple to apply for, You can even do it over the telephone. They ask minimal questions and it can be very quick to give over all the relevant information and wait to see whether you are approved The money is quickly put into your bank account and the repayment is automatically taken out by direct debit so there is very little that you have to do or remember.
  • They are easy to find – it is really easy to find payday lenders. You can just search online and you will find lots. There are also comparison websites where you can find lots of payday lenders listed in one place. This means that it is quick and easy to find out more about your options and to see which lenders are there for you.
  • There is lots of competition – there are a lot of payday lenders. Although at first glance this might seem confusing it is important to understand that it means that you are more likely to get a good deal. With lots of competition it means that prices will need to be competitive in order for lenders to stand out. Therefore, you are likely to not be paying more than necessary.

Therefore, a payday loan is not all about credit ratings. There are many other things to it and many of them are unique to payday loans or something that not many other loan types have. This means that it is worth considering a payday loan when you are thinking about which loan to take out even if you do not have a poor credit rating. If you need money quickly, want to borrow just a small amount, want something that is simple and can be repaid quickly then they can be a suitable choice. Obviously, it is always wise to compare loans to see which will benefit you the best and with there being plenty of payday lenders to choose from you will be able to have a pick of a big bunch and hopefully find one that will be really suitable for you.