Bailly

I really enjoy finance writing because it is something that I know a lot about. I was in a tricky situation and so did lots of research about finance. It really helped me, not only then but ever since and it is really great to be able to have the opportunity to be able to pass on what I have learned to help others. I therefore try to explain different things in the articles that I write and give various tips in the hope that others will be able to make some of the changes that I did in order to get their finances in order.

How Much Can I Borrow With a Payday Loan?

You may be considering a payday loan, but if you have not taken out one before then you may have quite a few questions about it. There are lots of things which you might not know about it and it is a really good idea to get all of your questions answered before you take out the loan. There are lots of different things that you might want to know and one of them is how much you will be able to borrow. This is not necessarily an easy question to answer.

Typical Amounts

Usually you will find that a payday lender will allow you to borrow up to £1,000. However, this will vary between different lenders. They tend to start at £100 for the lowest value loan, but this may also depend on the lender. It will vary a bit and if you find a lender that you can repay in instalments (often referred to as instalment loans) you may find that you are more likely to be able to borrow larger amounts of money.

Specific Amounts

You will find though, that lenders may not be willing to lend large amounts to everyone. They do not do a credit check which means that they will need to build up trust with you in a different way. They will often only agree to lend you smaller amount of money to start with. Then, if you successfully repay the loan when required, they will lend you larger amounts. This means that it can be tricky to be able to borrow a large sum from a lender that you have not used before. However, this will vary between lenders, so if you do need a larger sun of money then you may need to just contact several and see whether they will be willing to lend you the money or not.

What Should Your Borrow?

It is wise to also think about how much you should be borrowing. It can often be tempting to just borrow as much as we can because we will be able to use the money for the specific thing we need it for and then have some extra money to treat ourselves with. However, this is not a sensible idea. We need to think hard about the cost of borrowing the money and the fact that it will cost more if we borrow more. We also need to think about the fact that we will need to repay the money. We need to find out when we need to repay it and how much we need to repay and calculate whether we will be able to manage this. With a payday loan, we will need to repay the money on the next day we get paid. You may feel that this will be fine because you will be paid on that day so the money will be there. However, it is important to check this carefully because you may find that you have other things that need to be paid for on that day as well and these will take up the money you need to repay the loan or vice versa. You will also have other things that you will need to pay for such as food during the month and so you will need to make sure that you have enough money left for this as well. Therefore, it is a good idea to actually write out how much money you will need and then you will be able to work out whether you will have enough left after repaying the payday loan and your other bills.

Should I get a Payday Loan?

There are many payday lenders available and you may have seen them advertised, heard about them from others or even tried one out yourself. However, you may wonder whether getting out a payday loan is the right idea for you. There are lots of pros and cons of getting them and whether they are right will depend on you. There are a few main things that you should be considering when you are thinking about whether to get one.

Is the Cost Worth it?

It is always worth finding out how much a loan is going to cost you and thinking about whether it is worth it. Often, we will buy things without considering the cost and then we have no way of knowing whether we are getting good value for money or not. This means that we are just buying all sorts of things without really considering whether it brings worth to us and how much. So, with this loan it is wise to find out the cost and thinking about this. You should be able to find the cost of the loan on the lender’s website. They will often have a calculator where you can put in details of what you want to borrow and how long for and this will allow you to be able to work out how much the loan will cost you. You will find that this cost will vary between lenders and so comparing them is a good idea too as you may feel that one is too expensive but that there are others that you are happy to pay for.

Can I Afford to Repay it?

Next it is important to make sure that you will be able to repay the loan. With a payday loan you will normally need to repay the full balance of the loan in full on the next day that you are paid. This means that you need to be sure that you will have the money available to do this. You might just assume that it will be okay as you have been paid so you will have the money, but it is wise to check. This is because we often have a lot of payments leaving our account on the day that we are paid and we want to make sure that we have enough to cover everything. If there is not the money available then you will be charged more and you do not want that to happen. You also want to make sure that once you have paid for this and paid for your other bills, that there will still be enough money left to cover things you also need to buy such as food. Look back at some bank statements for details so that you can check this. It is important to do this as if you guess, you may find that you do not get it correct and that you end up borrowing money when you cannot afford to repay it.

Is it the Best Loan for me?

It is also a good idea to think about whether this is the right loan type for you. There are lots of different loans that we can all choose from and it is a really good idea to understand how they are work, what and who they are for and how much they cost. This will allow you to make a good choice when it comes to deciding which loan to pick. You will find that because they differ you will not always need the same loan each time you borrow and the costs and things that that will change over time and more lenders will appear and different loan types will also appear on the market as well.

What are Guarantor Loans?

There are all sorts of different loans and it is a good idea to get a good idea of what they all are. This is because if you need to borrow money, it is important for you to make sure that you choose the right sort of loan. There are some pretty well-known ones around but also some newer ones that less people use. It is wise to know about all of them though as a ‘good debt’ is one where you have considered every possibility. Therefore you will need to look at guarantor loans. If they are something that you have not come across before then you will need to find out more about them.

Basics of Guarantor Loans

A guarantor loan is usually for up to £10,000. It is a loan which is designed for borrowers who have a poor credit record and therefore do not have any other borrowing options. There is a catch though, the borrower will need to find a guarantor who will be willing to help them out. The guarantor will have to be prepared to make any repayments that the borrower cannot cover. They will therefore need to have a good credit record and the lender will check this. If they take a repayment from the borrower and the money is not available, they will then go to the guarantor and take the money from them instead.

Who are They For?

So the loans are for those that need to borrow a relatively large sum of money and do not have a good credit record so cannot use other types of loans. However, they will need to be able to find a guarantor that will be able to provide the money for them and will be happy to do so. It is always wise to think hard about a loan though and whether what you are borrowing for is necessary. Although, the lender will not want to know what you are using the money for, you should make sure that it is a good purpose. Think about what you will get out of it and whether you think that it is worth it considering the cost of the loan.

How to Pick a Guarantor?

It is important to think hard about who to pick as a guarantor. Obviously, there will only be a certain amount of people that will be able to do it for you. It will need to be someone that you know well and you know will be willing to support you in this way. You will also need it to be someone that has a good credit score. They will also have to have enough money available to be able to cover the repayments. It is a good idea to have a long chat with them about the fact that there is a chance that they will end up having to repay the whole of the loan because you may not manage it. Although this is unlikely to be something that you expect or want to happen, you will need to make sure that they are prepared just in case. You might worry that this will put them off, but it is better for them to be prepared. You will also need to think about whether they will expect you to repay them for the money that they have paid out for you. Talk to them about it and if they do want repaying discuss when and how they expect this to be done. Then it can be wise to get a written agreement between you so that there will be no arguments about this later.

Is it Wise to Have Multiple Credit Cards?

There are some people that have a lot of credit cards and many that have just one with some not having one at all. If you have one and are considering another then it can be wise to about whether you are making the right decision for you. There are advantages and disadvantages to having multiple credit cards and it is good to have a think about these before making your decision as to what you are going to do.

Cost

You will find that credit cards will differ in their interest rate charges. Therefore, if you see one that is cheaper than yours, you might be tempted to get it and use it so that you can have access to cheaper money. This can be a good idea, but you need to think about whether it is a good idea to keep your original card as well. If you have both then you have the potential of getting into more debt. You may decide to keep both and keep a check on the rates and then use the one that will be the cheapest. However, if you tend to repay the balance in full each month then there will be no need to worry so much about the interest rates as you will not be paying interest, but it is wise to have some idea of what is going on with them just in case you are in a situation where you cannot afford to pay them.

Access to Credit

If you need to borrow a lot of money then you may find that one credit card will not be enough. There will be a limit on each card as to how much you can borrow with them and so you might find that you need more than you are allowed to have on one particular card. How much you are allowed will depend on the lender and it may be partly determined by your credit record as well. You will need to decide though, whether you feel that this will be a wise thing for you to do. You might find that it will tempt you to spend more money than you can afford and this is not a nice situation to be in. You could end up spending too much and find that you will not be able to afford to repay it.

Repayments

It is really important to think hard about the expectations with regards to repayments. Credit cards will expect you to make a payment each month but the amount you are expected to pay will vary. You will have to a pay a minimum amount which will cover the interest and perhaps just a little more. This is likely to be an amount you can manage even if you have two cards, but it is worth checking. It is also good to think about the fact that you will really need to think hard about making sure that you consider how you will repay the balance. You will need to repay it at some point and the longer that you leave it unpaid, the more expensive it will be as you will have to keep paying the interest on it. Therefore, it could be wise to think about whether it is a good idea to have two cards with such a large joint credit limit or whether it will be easier for you to manage to repay just the one card. It will really depend on how much extra money you will be able to borrow and how much you think that you will need.

How to Use Your Credit Card to Your Advantage

Many of us have a credit card, but not all of us use it wisely. There are different things that we can do with a credit card which will mean that we can take advantage of it without having to pay for the privilege. It is perfectly within the rules of the card as well.

Always repay the Full Balance – the first thing we need to do is to always repay the balance that we owe in full. If we do not do this, we will be charged interest and this can be pretty expensive. Rates of interest on credit cards can be pretty high and therefore it is a good idea to try to avoid paying it if we can. Therefore, when the statement arrives pay back everything you need to by the date shown. If you need motivation, look at the interest that will be charged if you do not repay and calculate how much would be in a year. It will a significant sum of money and it might help you to see that it would be a good idea to repay the card in full. To make this really easy, you can set up a direct debit, so that the card issuer will take the money form your account each month. You will then not have to remember to do it, which will make things a lot easier. However. You will need to make sure that you keep a track of how much you are spending on the card so that you can be sure that you will have enough money to be able to afford to repay it when the time comes.

Take Advantage of the Security it Provides
A credit card can be good for using when you are shopping online a sit is more secure. Although it does mean that you will be handing over your card number and if someone gets hold of that they could spend money on it, it is more secure than you bank account details. With your credit card you can quickly put a stop on it and the money spent will be refunded to the card. If they get your bank account details they could steal money that is actually yours rather than loaning it on the card and it may not be so easy to get it back. There is also insurance with a credit card, so if you buy something online and it does not turn up or you cannot get a refund even if it is damaged or whatever, you will be able to get the money back through the credit card. Therefore, it can be very handy to have one.

Try a Reward Card
There are credit cards which give you rewards for using them. These can be really great, but only in certain circumstances. The cards can be more expensive than standard cards, so if you pay interest then it is better to stick to a conventional one. They also might encourage some people to buy more things. It is okay to use your card for more things, as long as you are buying the same amount but just using your card to pay, rather than other means such as cash or a debit card. Then you will get more rewards as they tend to be a percentage of what you spend on the card. You will need to monitor it closely though and make sure you will definitely be able to afford the repayment. Keep checking the balance and ensure you keep money back so that you can afford to repay the card.

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