It can sometimes be the case, that people will not be sure what sorts of things payday loans are for. There are certain types of loans, where the money can only be used for certain purposes and this means that there are specific restrictions on spending. However, with a payday loan, there are no specific restrictions on what you spend the money on. The lenders will not check what you are buying. However, you could find that you will be restricted due to the nature of the loan so it is worth bearing a few things in mind.
How Much you Can Borrow
With a payday loan, most lenders will allow you to have between £100 and £1,000. This means that if you need a significant amount of money, then this loan will not be right for you. However, if you do need between these amounts then it could be suitable for you. It is worth bearing in mind though, that not all lenders will offer this much. You may find that some will just offer less anyway and there may be some which will offe different amounts to different borrowers. They may like to only lend small amounts of money to first time borrowers and then only lend them larger amounts if they successfully repay the smaller amount first. This could potentially mean that you will have access to an even smaller amount of money, but you will need to check this out with the different lenders.
How Quickly you Need to Repay
With a guaranteed payday loan, you will normally have to repay everything that you have borrowed together with the interest all in one go and this will mean that you will have to find a lump sum. This repayment will be due on your next pay day which means that it is likely to last for a few weeks. You will therefore have to find the money to repay the loan very quickly. This might be fine for some people but it will depend on your situation and how much you are planning on borrowing, whether this will be suitable for you.
All loans have a cost and it is really important to make sure that you find out how much the cost is and think about whether it is an amount of money that you are prepared to pay. The cost may not be that obvious or easy to work out either, so it can be worth asking the lender as they will be able to let you know. Then you will be able to work out whether you think that it is worth it or not. It could depend on what you are using the loan to buy, as to whether you think that it is worth paying that extra money for it. You could find that you will be happy to pay it for some things, but for other things you will not be.
So, you will find that although there are no specific restriction in what you can use payday loans to pay for, it can be a good idea to think hard about whether they will be suitable for the purchase that you have in mind. There are many things to consider and the main ones could include whether you will be able to borrow enough money. Different lenders will lend different amounts so you may need to look around to find one that will allow you the money that you need. You also need to be aware of how quickly you will need to repay the money so that you can figure out if that will give you enough time to be able to find the funds that you need. You should also look at the cost and think about whether you are prepared to pay that much.