When Small Payday Loans Make Sense
Your car needs to go to the garage, you’ve had an unexpected medical bill to pay, or perhaps your washing machine has finally given up the ghost and you need to buy a new one. Whatever the reason for needing a little extra cash this month, small payday loans could be just the solution. If you don’t need a substantial loan and know you can pay the loan off upon receiving your next pay check, a traditional personal loan might not be for you. Small payday loans may charge a high interest rate but as long as you can pay them off within a few weeks, they’re ideal for emergencies when you need to get hold of a small amount of money quickly.
The repayment period varies from lender to lender and could be anything from a couple of weeks to a couple of months, although obviously the sooner you can pay off a small payday loan, the better, as you will be hit by the steep interest rates otherwise. Perhaps the easiest place to look for small payday loans is the Internet – there are dozens of payday loan lenders online and they’re all competing for your business so you may find the best rates there. The Internet also makes it easy to compare lenders of small payday loans, especially with sites that exist purely to do just that. Simply fill out an online form and up pops a list of lenders, their terms and their rates in an easy-to-compare format within seconds.
Use comparison sites, visit the sites of lenders yourself and do your research – make sure you find a small payday loan that is right for you in its length, interest rate and other terms. Once you’ve found a lender you’re happy with, an online form will only take a few minutes to fill in and process. Sometimes a representative will phone you and check a few details but one of the biggest benefits of small payday loans is that they will never check your credit history, which both speeds the process up and allows consumers with poor credit ratings to obtain a loan. The money you need could then be in your account within hours or certainly by the following morning, meaning you can pay that emergency bill straight away.
Some question the wisdom of taking out a loan with such a high interest rate but when compared with a traditional loan which will be paid back over a greater period of time, you could actually end up saving hundreds or thousands of dollars by just taking out a small payday loan and paying it back in a couple of weeks. This is where you need to think about exactly what you need – if you have several outstanding debts that will take you a while to pay off, you would be better off with a personal loan. You don’t want to get yourself into a situation whereby you are taking out several small payday loans again and again. If you really do only need a one-off cash advance that you know you can pay off as soon as you receive your next pay check, that’s when small payday loans just make sense.