Factors To Consider When Applying For A Guaranteed Payday Loan

Choosing any kind of financial product should always require research into the best option as ultimately, any decision you make is going to cost you money and have short and long term implications, therefore you need to be certain that any decision you make best suits you.  Choosing a guaranteed payday loan is no exception, as regardless of how much you need the money, it is essential that you consider certain factors before proceeding otherwise it could result in you incurring debt which you simply cannot afford to repay.  Therefore, although we would love to be able to help you arrange a loan make sure you have considered the following factors:

What do you need the loan for?

As a general rule, payday loans should be used for necessities and not luxuries.  This means that if you find yourself in a position where you cannot afford to pay for a utility bill, a car repair or a household emergency, then a payday loan is a good solution.  If you want the money to pay for a night out, clothes or other such luxuries, it is not advisable to use this type of loan or any other kind of credit as luxuries should be something that are saved up for and used as a treat.

Do you qualify for the loan?

You qualify for a payday loan if you meet the following minimum criteria:

• Applicants must be 18 years of age or older
• Must have a valid UK bank account that can accept direct debit payments
• Must be employed, receiving a regular salary
• Must be a resident of the United Kingdom

How much will the loan actually cost you?

Be mindful of how much your loan will cost you.  The slider tool on the home page indicates how much your loan will cost you for the first month, however if you choose to ‘rollover’ your loan you will incur additional charges at differential rates of APR depending on who your provider is.  Therefore make sure that you read your terms and conditions when you are awarded the loan and understand how much it will cost you if you do decide to postpone repayment.

Can you afford to repay the loan?

Before confirming the loan, make sure that you are able to make the full repayment on time and in full on the date of your next payday.  If you cannot do this and you choose to proceed with the loan, be mindful that postponing repayment will incur interest making your loan more expensive.

What are the benefits to you of accessing the loan?

This type of loan should be used for necessities, however it is also a less expensive way to borrow money than most unauthorised overdrafts, therefore for those of you that are finance-savvy, use this loan to save yourself money in this situation.  In addition to this, accessing a payday loan and repaying it according to the terms and conditions is a quick way to boost your credit rating.  This is because it leaves a positive footprint on your credit report proving that you can manage your finances.