A payday loan is a type of short term loan that can be used when someone needs funds quickly.
They are designed to bridge the gap between paydays so that people can access money in order to cover unexpected costs and expenses. If you’re struggling to meet an urgent financial commitment, such as bills or car repairs, then a payday loan could provide the cash you need until your next salary arrives. The money is paid directly into your bank account, and you repay in full with interest and charges at the end of the month.
Most lenders offer loans between £100 to £1500.
You could use a payday loan if other sources of credit, like traditional bank loans, are not available or would take too long to process. It’s important to remember that payday loans are very expensive and should only be taken out as a last resort when all other options have been exhausted.
Payday loans can be a good way of borrowing in emergency situations, but they are expensive and could make your situation worse if you can’t afford to pay it back on time. It’s also important to make sure that you will be able to afford the repayments on time, as failure to do so could lead to debt problems down the line.
Payday loans can have a negative effect on getting a mortgage, as many lenders view them as a sign of financial difficulty. Payday loans can also hurt your credit score, which could make it difficult to obtain financing from major lenders.
When your credit is impaired you are more likely to need a bad credit mortgage or subprime mortgage, both of which will be more expensive.
