Payday Loans

Should I Repay my payday Loan Early?

We often hear advice that we should repay our loans early. It is well worth thinking about because there are many advantages to doing so. These will apply to any loan including a payday loan.

Saves Money

The main advantage of repaying a loan early is the money that you can save. With some loan types there may be a charge if you repay early, but this is nor normally the case with a payday loan, although it is always a good idea to check just in case. You will find that interest is charge on a loan daily and so the sooner that you can repay it, the less interest you will pay. There will normally be some fixed fees as well, to cover admin charges and things like that which you have to pay regardless of how long you borrow for. However, if you can repay early and save some interest, this could still make a significant difference to how much the loan costs you overall. Savings even a small amount of money is worth it and as payday loans tend to have high interest rates, then you could save a significant chunk of money if you are able to repay it early. Sometimes, even repaying some early is allowed and then, although you will still owe some money, you will be charged less interest and this will still reduce how much the loan will cost.

Reduces Stress

Some people get worried about owing money and they will feel stressed when they have a loan. This is not the case for everyone and it is not a state of mind that is necessary, but it is true that some people will feel like this. If this is the case for you, then repaying the loan earlier will help you as you will be out of debt more quickly. This will allow you start to relax more quickly. Being stressed is unhealthy for the body and mind and so if we can do what we can to reduce the stress that we have, then we will be able to be healthier as a result.

Looks Better on Credit Report

Anyone looking at your credit report, might be worried if they can see that you have taken out a payday loan. This is because they might think they you could not borrow elsewhere or you needed money in an emergency. However, if you repaid it early, it will help them to see that you are capable of managing your money well and that you are responsible. This could then help you will any future loan applications that you make as they will not be so reluctant to take you on.

Of course, in order to repay your payday loan early, you will need to find some money. Payday loans are normally set up to be repaid when you next get paid, which means that to repay it early, you will need to find another source of income. You might be able to raise the money by selling things that you owe and no longer need. You might be able to get an advance on your salary and use that to pay it. You might be able to find another job, perhaps some temp work, freelancing or something like that which will pay you as soon as you complete the work and this could help you to raise the necessary funds. It is worth having a think about whether there might be anything that you can do which could help you to get that money and enable you to repay your loan early.

Credit Scoring

Does my Credit Score Matter?

We often hear things about credit scores and it can be a bit confusing. You may wonder whether your credit score will even matter, what it is for and who will look at it. It is a good idea to be aware of these things so that you know whether you need to take any action.

What is a Credit Score?

A credit score is actually a fictional thing. In the UK we all have a credit record though which has all sorts of information about our finances recorded on it. It will list any CCJ’s we have had, missed repayments, what money we currently owe and what bills we pay as well as identifying information such as our address and whether we are registered to vote. We can all look at our own credit record for free and see what information is on there. Sometimes they are not correct and will need to be changed but usually they are an accurate record.

Why Does it Matter?

The credit record is used by a number of people. If you apply for a loan, then the potential lender will look at it and will want to see evidence that they can trust you to repay the loan. A potential landlord will look at it to see whether they can trust you to make the necessary regular monthly rental payments. A potential insurer may do the same and they may not allow you to pay monthly if they fear you may not be able to meet all of the payments. Utility suppliers will also take a look and they may request that you use a prepayment meter if they feel that you are unlikely to be able to manage to make the monthly payments. There may even be some employers that will take a look at it.

This means that it is an extremely important thing. You might think that it does not matter that much to you but, you never know when someone might want to take a look at it. You may not be responsible for the household bills or have a need to borrow money, but you never know when you might and so it is a good idea to be well prepared for the future. Missed repayments stay on the credit record for quite a while and CCJ’s even longer which means that it is important to try to avoid doing this and make sure that you keep everything in order so that you have a better chance of being able to get all the products that you apply for when you need them.

It can be a little confusing that different people that look at your credit score will be looking for different things. They will all have different criteria that they use to judge you. However, it is most likely that they will be wanting to make sure that they can trust you to be responsible with money and so proving that is important.

When Might I Need it?

Therefore, you can see that you might need to have a good credit record in certain circumstances. If you are looking for a new job, then it could be really important. It could also be important if you are applying for a loan, trying to move house or even switching utility suppliers or insurers. Therefore, making sure that it is correct and that it looks good is really important too. So, make sure that you try hard not to miss any payments, that you do not have too many loans and that you always make the repayments on time and this could make a big difference to you.

Overdrafts

How Can I Find the Cheapest Overdraft?

There are lots of banks that will offer an overdraft but trying to find the cheapest one can be tricky. This is because the rates are variable and this means that they can change. There are also so many different banks that it can be hard finding out who is offering what and perhaps even which banks even exist.

Comparison Website

It can be tempting to go to a comparison website and then use that to compare the different banks. Although this might seem like a really good idea it may not be. This is because you will find that the sites do not include every single bank. Even if you look at several different comparison websites, it is unlikely that you will see every bank. This is because the comparison websites make their money from commission. If you click on a link on their website and take out an account as a result they will get paid some money. They are therefore not only likely to only list banks that pay them commission but they will also possibly favour those which pay them more commission and therefore only include those on their website. So, you could find that you will be missing out on some much better rates but you are not seeing them on these sites.

Search Engine

You can go to search engine and then just look for every bank and building society and then look up their current account and check out the interest rate. This will take some time and you still may miss some. This is because it is not easy to be listed high up on a search engine and so some banks may come so low down that you do not see them but they may have the best accounts for you.

Finance Website

There are some finance websites which will let you know what some of the best rates are at the moment. These can be very useful but you do need to make sure that they are no biased. Some will get commission on leads, like the comparison sites and so may rate certain banks higher for this reason or miss some out. So, try to be wary and use sites that you trust and feel will not have bias in this way.

Financial Advisor

If you go to a financial advisor then they will know about all the accounts that are available and they will be able to let you know. This can be a guaranteed way to get the help that you need because they are not allowed to take commission and are therefore not biased. However, you will have to pay them for their time and help and therefore you will need to think about whether you think that it is worth doing this or whether you would rather do the searching yourself and not pay.

Lastly, it is really important to think about that overdraft and the cost of it. Consider whether the cost of the overdraft is the only thing that you should be concerned about. You will be taking out a current account with this bank and so they will be dealing with your direct debits, standing orders, salary being paid in and all of your day to day banking transactions. This means that you will surely want to use a bank that you can trust and this could be as important to you as using one that offers you a good interest rate. So make sure that you think about value for money as well as cost and then you will be able to ensure you get the best deal.

Cash Loans

Will a Cash Loan be Enough?

It can be a good question, to ask, as to whether you think that a cash loan will be enough for you to borrow. It is good to think about a selection of things when you are considering this.

How Much do I Need to Borrow?

To start with you will need to think about how much you need to borrow. You might think that this is really obvious because you know what you are intending on borrowing. However, it is important to get it right. For example, you might find that you have some money that you can put towards buying the item that you need the loan for. This would mean that you will not have to borrow as much. You might think that it will be a big advantage to be able to borrow more and that you should do it because you will be able to have a bit of extra money to treat yourself to other things. It is really important to make sure that you take into account that you will have to pay for the loan and the more money you borrow the more expensive it will be and so you want to make sure that you do not borrow more than necessary. You will also need to bear in mind that you need to repay the money and that you will be able to afford to do that as well. You will need to repay all at once and so you need to make sure that when you decide how much to borrow, that you borrow an amount that you will be able to repay.

How Much Will the Lender Offer?

It is important to note that lenders may be prepared to lend you different amounts. Generally, a cash loan will provide you with between £100 and £1,000, However, you could find that you will not get this much money. This is because some lenders will only lend first time borrowers a smaller amount and see if they can pay that back before they will lend them more. This means that if you do need a large amount of money, you could find that you will not be able to get enough. This will vary between lenders though and you will need to make sure that you compare them and ask them how much they will be prepared to lend you before you apply so that you know whether you will be able to get enough money for your needs.

Can I Afford That?

It is also a really good idea to think about whether you can afford the cash loan. Make sure that you find out how much it will cost you and think about whether you are prepared to pay that much money for it. It is also good to make sure that you can afford the repayment. Do not just look at the figure and try to guess, but actually look at your household finances and work out whether this will be an amount that you will be able to afford to repay and then you will be able to properly decide whether it is an amount that you will be able to afford. If it is not, you may still be able to get the loan but you will need to think carefully about what you will do. It is good to put together a plan on what you will do in order to make sure that you can afford the loan. Have different ideas such as how you might be able to reduce how much you spend as well as how you can increase your earnings so that you will be able to afford it. Make sure that you are confident that your ideas will work and then you can go ahead with the loan.

Payday Loans

Are Any Loans Quicker Than a Payday Loan?

If you need to arrange a loan really quickly, then you may wonder what will be available to you. You may wonder if there are any options outside of a payday loan that will offer you the money that you need really quickly. It is worth checking this out as it is wise to compare all of your options, so that you can find the one which will be the best for you.

Payday Loans – some payday loans can be arranged really quickly. This is because payday loans were set up to help people out in emergencies and therefore, they know that it is important to get the money quickly to the borrower. Some can do this within a few hours, but some will take longer and if you do need the money really quickly then it can be a good idea to check with the different lenders as to how long it will take them to organise a loan for you.

Overdrafts – an overdraft that is already arranged will be available to use when you need it. This means that unless you have already used it up, it will be there immediately for you. If you do not have one arranged then it can be harder and it may take too long to arrange one.

Credit Cards – if you already have a credit card then it can be a quick way to get money. You might want to use it to withdraw cash, but it is worth bearing in mind that there are charges for this and you will be charged interest right away. If you can use it to buy things, then there will be some delay before you have to pay for items and you will then be charged interest of you do not repay the money.

Other Loans – you may find that there are some other loans that will be quick to arrange. It can be worth looking at what loans are available that offer the amount of money that you need as you could find that they will be able to provide you with money quite quickly. Obviously, you will need to get in touch with the lenders so that you will be able to compare them.

You can see that there could be quite a few options. It can be useful though, to have an idea of how different loans work and then you will know which might suit your needs the best. Knowing how long they take to arrange will also be very useful. You might feel that there is no point in doing this research until you know if you need the money. The problem with delaying it though, is that you will not know much before you need to borrow money. Then, if you are in a sudden rush, you will not be able to easily make a choice. You will need to do your research then, when you are very short of time. You may not even have the time to do it or you may be in such a rush that you do not do it properly. Therefore, it can be better, to at least have some idea of what might be available to you and then you will be a step closer to a good decision. Knowing how long loans are likely to take to arrange can also be very useful for you. Then, when you are in a situation when you need money quickly, you will be much more aware of what will be available for you and how long you are likely to have to wait for the money that you need. Then you will be able to pick the loan that will suit your needs the best.