Is it worth applying for a Payday Loan?


When faced with a financial emergency, it can seem like an impossible task to get yourself out of this difficulty, however, this is not the case. With the likes of payday loans or a bad credit loan, you can get yourself out of a financial emergency whilst making minimal damage to your credit score. To help you out, we will be providing you with information on whether or not it is worth applying for a payday loan when you are struggling financially.

What Is A Payday Loan?

A payday loan is a loan type that is typically a small amount of money paid back between one to three months with different borrowing amounts. However, it is important to remember that this borrowing amount can change depending on the lender that you choose. Whether you are in the need of extra finance for an unexpected bill or you have a car breakdown, these finances can benefit you in the long term.

How Much Can You Borrow?

When applying for a loan, it is important to make sure that you are aware of the amount that you can borrow from your chosen lender. A payday loan borrowing amount is typically between £100 to £1,000 and can differ between one to three months. When you are looking to apply for this style of loan, it is important to sure that you are aware of the amount you are able to borrow at the time of applying, this will work to ensure that you are able to pay back your loan with easy monthly repayments.

Where Can You Apply?

Applying for a payday loan is as easy as finding the right lender online and filling out an application form. Though it can be a difficult process when it comes to finding a reliable lender, there are several FCA-approved lenders out there that can provide you with an affordable APR. When applying with your lender, you will be required to fill out an application form. This will provide them with information on your credit score, monthly income, and other important elements. From there, you will hear a response back from your lender as to whether or not you have been accepted for the loan type and have the money within your account in 24 hours.

How Long Does Your Payday Loan Last?

A payday loan typically lasts between one to three months depending on the amount that you have borrowed and can affect the APR of the loan. An APR is the amount of interest and additional charges that can be added to the loan over the course of the loan term. This is outlined to the borrower beforehand and can enable you to work out whether your chosen loan type is affordable enough to apply for before you begin to fill out the application form, therefore helping you to prevent defaulting on payments.

Whether you have app[lied for an application before or this is the first loan you have ever app[lied for, there are several options out there for you to choose from when it comes to getting yourself out of a financial emergency.