When Is the Best Time to Use Payday Loans?

A payday refers to a short term financing given to a borrower for sustenance until the salary is credited. Therefore, it is simply a sustenance loan in which the lender expects payment in full and on time in

addition to the interests and fees.

Payday loans are directly deposited to your account after approval. The repayments are expected at the end of the loan period which is basically one month hence the name payday loans. Compared to other modes of financing, payday loans are slightly an expensive venture. However, in most countries, the fees and other extra charges are capped by the law. For instance, if you are taking out a loan, the interest may be fixed to not more than $30 per $100 borrowed, and, an extra $15 for defaulting.

Payday loans

An opportune time to apply for a payday loan

Usually, there is no standard opportune time where you are supposed to get financing, nevertheless, you often find yourself in a situation where you have to seek short term loans to finance emergent issues. It does not matter how meticulous you are at budgeting, economizing and prioritizing, you

will still at some point get a financial press that would lead you to borrow money online or from the credit unions.

So, how should know the best t

time to apply for financing? This article further from pointing out

the circumstances for taking out payday loans as a form of short term temporary financing will also discuss responsible borrowing and options you may have before settling for payday loans which as pointed earlier, are risky and very expensive for the borrowers.

  • Emergency occurrences

Emergencies occur every day, hospital bills, car breakdowns, fuel, family visits, and general home repairs, just to name a few. You may be able to borrow money from your friends or families but most of the time; many people do not have this luxury. Therefore, they tend to lean on the lenders to alleviate the situation they are in. payday loans provide the borrower with a reprieve is such a

circumstance since they

take a shorter time to get approval.

Some take less than 12 hours to process and send the money to the applicant’s bank account. Such conveniences are what make payday

loans popular with most earners. They are assured of the backup buffer when they get into a crisis.

  • Repairs

Repairs might range from household, motor, house renovations, appliances, etc. these costs are

not premeditated. Therefore, it is not easy to accurately budget for them, hence the need for payday

loans whenever any of the expense is


  • Groceries and general household expenditure

You can borrow money to buy household commodities such as food, clothing and general merchandise required in the house. Payday loans do not have any limitations when it comes to spending.

  • Purchasing inventory

If you are employed, then you can use your employment to advantage by taking out a loan to help

in financing the business in case it is going through a rough patch. You can use this financing to

pay suppliers or even add more stock to the business.

  • Loan consolidation

You can use these kinds of loans to repay your existing credits. This may be necessary once your

loan’s maturity date has reached and you are dry on funds. Because of their flexibility, payday

loans are ideal in such conditions.

Short term loans positives

  1. Easily accessible. Cash advance loans are available to the public almost all times, you can as well borrow money online from Bugis Credit through their online lender’s platforms. Hence, with technological advancement, ways to obtain payday loans have significantly bettered as time passed. Furthermore, the cash advance loans are available at any time of the day. And, the lenders often promise the availability of funds in less than 24 hours.
  2. Fewer requirements. Standard loan traditional lenders have standard rules for the qualification of a loan. Among them include proof of citizenship, proof of income, credit checking, appraisals, checking down payment and ability to repay back the loan in the future. Contrary to this, you are required to have just the identification, an active bank account, be of legal age and have a steady flow of income.
  3. No credit checks. Unlike other loans, when you borrow payday loans, your credit history together with the credit score is not pulled out. This has two impacts; 1. Your credit score will not be adversely affected since hard credit inquiry lowers the credit scores by a few points. 2. If you have a bad credit rating, the loan company will still consider you regales.
  4. Unsecured loans. Unlike other loans, payday financing is absolutely unsecured. You don’t need to use security in place of the loan. You can use appraisals, a host of other requirements on other forms of loans but all these requirements are necessary.


  • Very expensive

By comparison, payday loans are very pricey. Based on the interest rates applied by the lenders,

the rates here are almost ranging at 4%-6%. This is a very expensive form of borrowing.

  • They are predatory

A predatory loan is that which has misleading, wrong or unclear terms of the loans. By so doing

you get stuck up with the weight of loans. However, many lenders use this trick to trap the clients

in the debt cycle.

  • Targets low-income earners

According to studies, it was discovered that a majority of the lenders are located mostly close to

those areas clustered with people who have low-income cash flow in their lives.

  • Can access your bank account

The borrowers are required in the recent past to submit their bank account numbers to facilitate

direct deposits and the check-off system for the repayment of the authorized account.

Regardless of the many benefits and uses of payday loans, there are further concerns about the cost-intensive nature of this type of loan. Also, some lenders may impose a loan on you just to trap you in a pool of debts. So, before you consider having your payday loan, consider all the options available and choose the best alternative for you.

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