Online payday loans can be a quick and easy way to access money before your next payslip. These short-term forms of borrowing money can provide a little extra financial help when needed.
Understanding what a payday loan is, what they’re used for, and how you can get one will help determine whether this form of funding suits your circumstances.
How Do Payday Loans Work?
A payday loan in the UK aims to help people manage their cash flow by offering a short-term money-borrowing solution. Typically, these will be smaller loans to cover immediate costs, such as a £500 loan or £1,000 loan.
Payday loans are often used to address unexpected financial emergencies. Borrowers can submit a payday loan request online and receive on-screen results in minutes. If approved, borrowers may be connected to an FCA-authorised direct lender. Some lenders may even offer funding in as little as one business day.
It is worth noting that payday loans have shorter repayment terms, which are typically within two weeks. Along with shorter repayment terms, payday loans also come with higher interest rates.
What Can I Use a Payday Loan For?
Financial difficulties can come unexpectedly and in all forms. A payday loan may be used for most personal debts and expenses but is most often used for financial emergencies where funding is urgently needed.
People with bad credit can also access payday loans. However, an alternative to a payday loan may be best in certain scenarios.
Most borrowers use payday loans in the UK to cover the following expenses:
Home Repairs
Taking out a payday loan for home repairs is a very common scenario. Certain home repairs, such as a broken boiler, leaky drain, or cracked window, require immediate attention. Payday loans offer flexibility, as many borrowers can apply online at any time.
However, payday loans are typically not suitable for large-sum home renovations, such as kitchen remodels.
Vehicle Repairs
Unexpected car repairs can be another major problem for many people in the UK, both financially and logistically. In some cases, you may need external monetary help to fix your vehicle problems or in extreme cases, to go towards purchasing a new one. Accessing fast cash can help you address your vehicle repairs quicker and regain mobility.
Bill Payments
With the thought of bill payments looming during a period of financial difficulty, support can go a long way. Small-scale loans can help to ease the stress of these payments by offering convenient, additional financial aid. This can allow you to cover the cost of those extra pounds on your heating bill this winter without the need to wear coats around the house!
Other Personal Expenses
There is a range of ways you can spend a payday loan, with the needs of the individual varying from person to person. Other personal expenses to use your payday loan for can include the following:
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Veterinary bills
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Medical aids
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Necessary travel costs
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Temporary expenses
When Should You Avoid Using a Payday Loan?
Loans in the UK, and payday loans specifically, are not recommended for luxury purchases or any unnecessary payments. Opting for a payday loan for the likes of holidays or weddings should be avoided. Due to the high-interest rates, getting payday loans for non-essential purposes can lead to a cycle of debt.
How Can I Get a Payday Loan?
There are several online and brick-and-mortar lenders throughout the UK. At Doddler, we aim to make the payday loan process easier through our online loan request form.
After you submit some personal and financial information, we will try and connect you with an FCA-authorised direct lender.
