What do people use a payday advance loan for?

Needing to borrow money isn’t always about needing to take out a large loan for a long time. Sometimes, you may need a smaller loan, just to tide you over for a few weeks or even days. This is where a payday advance loan may be useful.

CFPB

There are many different reasons why consumers choose to use a short-term loan such as this rather than more complicated or longer term standard loans, also read – “7 Things You Should Know.” You may for example, just need to borrow a smaller sum for a shorter period of time because you:

– have an unexpected bill come in
– have to pay for something that you didn’t anticipate
– have a heavy month in outgoings and need a bit of extra cash to tide you over
– find a bargain that you need immediate cash for to buy on offer but you don’t have any spare money until you next get paid

A payday advance loan isn’t like other types of loans in many ways. This kind of borrowing is more designed to help you:

– borrow smaller sums (i.e. hundreds rather than thousands of pounds)
get a loan in 24 hours or less
– bypass the standard loans approval procedures and waiting times
– borrow money that you are then able to repay the next time you get paid

This kind of loan suits many people who find that they may need to borrow money but who find that their lending needs don’t fit traditional loan methods. Let’s say, for example, that you see a bargain cut-price holiday on offer that is only available for a couple of days. If you don’t get a deposit down by that time, the offer will close.

You may not have the cash spare now. You may be a couple of weeks away from your next payday when you have access to the deposit money. But, you may not be able to get a bank to lend you the small sum you need and they are highly unlikely to approve a loan in time in any case.

A payday advance loan may be an alternative worth considering. This could give you the cash you need within a day. All you have to do then is to repay what you borrow plus the interest fee that is charged and you’ll be sorted.

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