Warning: Late repayments can cause you serious money problems. For help, go to moneyadviceservice.org.uk
There are both advantages and disadvantages to short term or payday loans. We’ve highlighted a few below.
You don’t need to have a perfect credit history to be eligible
Paying early or on time can help build your credit footprint
As the loan is short term, you will not be making long term repayments
Simple, short application form
Quick access to funds in an emergency
Interest rates are higher than more conventional lenders
For those with a good credit history high interest loans shouldn’t be the first option
Late repayments can damage your credit rating
Repayments will increase your monthly outgoings, which can worsen debt
If used for long term borrowing, payday loans can cause a debt spiral
To find out more on payday loans click here.