Should I Switch Current Accounts to get a Lower Interest Overdraft?

Most of us have a current account and many of these come with an overdraft facility. These will allow us to borrow money if we need to but they can be really expensive. This means that many people do shop around and may change their current account provider in order to find a better deal. […]


Should I Consider a Payday Loan if I Don’t have a Poor Credit score?

Many of us will not consider a payday loan if we do not have a poor credit score. This is because we will often think that the loan is only for those with a poor credit rating and so there would be no need for use to even consider having one. Although payday loans were designed to help those that have a poor credit score it does not mean that those that have a good credit rating should ignore them altogether. There are other features which may have appeal that are worth thinking about –

  • Can be arranged very quickly – a payday loan can be arranged extremely quickly. The lack of a credit check can speed up the process which means that you might be able to get hold of the money much more quickly than by other means. Some payday lenders will work through the night or at weekends so that you can get money at times when a standard lender would not be open. If you have no other forms of borrowing already arranged, such as a credit card or overdraft, then getting money from a payday loan will be significantly faster than applying for any other type of loan. If you need the money urgently then this type of loan could be very useful for you.
  • Do not last long – a payday loan will not last long. You will normally have to repay the loan in full within a few weeks and this means that you will not have to worry about having a debt hanging over you for long. Some people get stressed when they think about the debt that they have and the idea that they owe money makes them feel stressed. So, having a very short-term loan can be extremely attractive as you will not owe money for very long at all.
  • Repayment is on payday – the repayment date for a payday loan is always set on the day that you are paid. This means that there will be money going into your account and therefore you should have enough to be able to easily afford to repay it. This is more useful than loans where the repayment date is not near to when you are paid and you have to struggle to find the money to cover it.
  • Only for small amounts – a payday loan will only be for an amount up to £1,000. The less you borrow, the easier it is to repay it as it is more affordable. With some loans you may be forced to borrow more than you need as you cannot borrow small amounts. This might seem good, as you have spare money, but you will have to pay extra in interest for that money and it will mean that the loan will be more expensive than if you could borrow less.

As you can see there are many reasons why you might find that a payday loan will benefit you even if you do have a good credit score. You therefore should not automatically dismiss it when you are comparing different loans. Of course, it is always really important to compare loans on many different factors though. Start by making sure that you really need the loan and that you have no other alternatives to save you from having to borrow. Then look at all of the different loans and consider which type would be best for your needs. It might be that some loans are designed for specific purchases and these may or may not be relevant and you also need to think about how much money you need to borrow and whether the loan you are considering will give you the right amount. Remember to compare all sorts of features too such as how much that loan type tends to cost, what the repayments are like and things like that. Once you decide what type of loan to get, you then need to compare the lenders. You want to look at cost, value for money, if you can manage the repayments, customer service, reputation of the lender and things like this. There are a lot of things to consider and it is worth taking some time to think hard so that you borrow from the lender that suits your needs the best. It can be tempting to rush this process, especially if you do need money quickly but it is worth taking some time to do it. If you rush you may regret your decision as you may end up paying more than necessary or using a lender that is not sympathetic to your needs. Make sure that you therefore check out lenders websites, speak to people you know about their experience and look at reviews on personal finance websites so that you have a lot of information to help you to make up your mind.