student life

6 common reasons you may need a payday loan

Written by Nigel Simpkins

Although payday loans have received mixed reviews, there is no doubt that they can come in handy.  Having cash flow issues can be a stressful experience – and this can be a way to relieve that pressure until you are in a better financial position.  Below are some of the most common reasons you may need a payday loan.

You can’t get a bank loan

If you have already been in contact with your bank for a business or personal loan and been refused – payday loans could be an option to resolve any short-term money problems.  Banks also tend to take longer to approve your application which can be problematic if you require cash quickly and check your credit.

To pay off bad debt

If you have an overdue credit card bill, it can be stressful if they start to pile on the pressure.  They can send you threatening letters letting you know that they will be instructing debt collection agencies to collect, and they sometimes phone you regularly which can be a stressful experience.  In order to get them off your back – a payday loan can ease some of the burden.

You don’t get credit checked

If you have particularly bad credit, it can be hard to get anyone to release funds to you.  Most banks will do a thorough credit check before lending.  If you research some same day loans (you can find some detailed information on Cash Lady), you will find that there are companies out there that offer no credit check options.  They will also submit your application to a large number of lenders giving you a better chance of being accepted.

To Pay something that is time sensitive

You don’t necessarily need to be in a bad financial position to use a payday loan – it could simply be that you need to pay something that is time sensitive.  In order to meet the deadline and not accrue any fines – this could ultimately be the best option.  That way, you can pay your payday loan back at a later date.

You don’t want to ask family or friends

It can be uncomfortable asking family or friends for cash.  If you struggle to pay them back – it can sometimes damage your relationship with them.  It could also be that you don’t want them to worry unnecessarily about your financial situation.  As such, an alternative could be a payday loan.  This will resolve any short-term issues you may be having – and mean that you don’t need to ask your family or friends.

In order to pay everyday bills

It could be as simple that you just need a little extra cash to tide you over before payday.  This could cover your necessary utility bills, groceries, and other bits and bobs.  As long as you know that you will get your salary soon to pay the loan back, this could be a viable option to help you out.

There are many reasons why a payday loan could be the right option to assist with any short-term cash flow issues.