What can I buy with Same Day Loans?

There are certain types of loans which can only be used for one purpose. For example, you can only use a mortgage to buy a home or a student loan to pay for a course. However, there are many other bad credit payday loans which can be used to buy anything and a same day loan falls into this category. However, there will be some restrictions still, because of the nature of the loan.

How much you can borrow

All loan will have an amount that you can borrow up to and for some lenders this will be determined by the borrower and their credit record. With a same day loan, the credit record is not taken into account when the lender decides how much money they will be lending. They use a different approach towards risk. They are happy to lend to anyone over the age of 18, that is a UK resident with a bank account and regular income, regardless of their credit score. This is because they were set up to help these specific types of borrowers who do have a poor credit record and struggle to borrow elsewhere.

However, this does mean that the lenders are taking a risk with the loans. They therefore only lend small amounts of money. For a first-time borrower, they may only lend a few hundred pounds. Once this is repaid in full and on time, then they will feel they can trust the borrower and will be willing to lend them more, if they need it. They will lend up to £1,000 but if you need less, then they will lend you less.

This does mean though, if you need a large amount of money, then the loans will not be suitable for you. If you want to buy a house or car then this will not be anywhere near enough and even for things like house or car repairs they may not be suitable.

How long you can borrow it for

With some loans you can borrow money over a long period of time. This is good if you borrow a lot of money as you will be able to spend a long time repaying it in small instalments. However, some people prefer a loan not lasting very long and this is where a same day loan can be helpful. These loans have to repaid within a very short period. You have to repay the loan when you next get paid. This means that you may have the loan for a few weeks or perhaps even just a few days. This can mean that you will really only be able to buy something small.

The reason for this is that you have to repay it all in a lump sum. If you borrow too much money you will not be able to afford to repay it all. If you miss the repayment you will get charged extra money and this is not ideal.

It is therefore really important to make sure that you are capable of repaying. Take a careful look at your personal finances and calculate if this is the case. Make sure you find out from the lender exactly how much you will need to repay. Then you can properly work out whether you will be able to afford it. You will be able to look at past bank statements to see how much money you normally have coming in and how much you normally pay out. Then you will be able to see whether you have enough.

If you feel that you might struggle it does not mean that you will have to abandon the idea totally. You can think about ways that you can make it easier for you to manage. This could mean cutting down your spending in some areas. Many of us buy a combination of essential and non-essential items and if we can cut down on the items that are not essential, then we might be able to free up enough money to be able to afford to repay the loan. Even if we cannot do this we might be able to pay less for our essentials by comparing prices on the things that we buy and opting for cheaper options. It might also be possible for us to raise some money. This might be possible by doing extra work, taking on a second job, selling things we own, doing some online work or freelancing. There are lots of options that you could consider that could help you. Do make sure that you have a plan though and that you are prepared to follow it to ensure that you are able to repay it.

As you cannot borrow money for that long it will restrict how much you can borrow and therefore what you can buy with the money.

So, you can see that you will need to think carefully about what you use a payday loan for. Not because there are any specific restrictions but because of the amount that you are allowed to borrow and the amount that you will be able to afford to repay.

Who are Same Day Loans for?

If you hear about same day loans you might automatically assume that they are not for you. You might think that this type of loan is just for certain types of people and that you will never fit into that category. However, it is worth making sure that you know a lot about the loan and who it is targeted at, in case you have made incorrect assumptions. You may find that you are the type of person the loan is aimed at after all, or you may be in a situation at some other time where you need a loan like this and it is worth knowing more about them so that you have this information for when you need it. A first step is to understand who the loans are for.

  • Those with a poor credit rating– if you have a poor credit rating then it will be very difficult for you to be able to borrow money. This is because lenders tend to always do a credit check and have a look to see whether they feel you will be able to repay their loan. They will look to see whether they feel you are capable of making regular payments by looking at whether you are doing this now, by paying bills and things like that. Then they will look at whether you have had loans in the past and whether you were able to easily repay those. They will also look at how much you are paid and use that to decide whether they will lend you money. They can be pretty strict and it can mean that there will be quite a lot of people that will not be able to borrow money through these lenders. With a same day lender, they will not do this sort of check. They will check to make sure that you have an income but other than that they will not be too worried about anything else. This means that you can still get a loan from them even if you have defaulted on another one or are not paying regular payments or have a low income.
  • Those who need money quickly– there are some people that get themselves into the situation where they need money in a hurry. This could be because an unexpected bill turns up that must be paid, something needs replacing that has been broken or you just suddenly cannot make ends meet and you need to buy food or a bus ticket to get to work. The same day loans can be extremely useful in this sort of situation. You might even be able to get the money that you need within a few hours. This means that if you have a financial emergency you will be able to cope with it by using this sort of loan.
  • Those who don’t want a loan for long – A same day loan will be unlikely to last very long. This can be really great for anyone who hates being in debt as it will be cleared quickly. Sometimes borrowing can be really stressful and therefore if it can be over with quickly then this can help. A same day loan will need to be repaid by the next time you are paid. This means that you will only be in debt for a few weeks or even maybe a few days. This can be a great relief to some people
  • Those who only need to borrow small amounts– often when you look for a traditional loan you will have to borrow large sums of money. If you want to borrow less, then it can be tricky. It is often wise not to borrow more money than you need because you are paying for everything that you borrow and it will take longer to repay if you borrow more. Therefore, using a same-day loan can be good as you can borrow £100-£1000 so relatively small amounts of money.

So, you can see that there are lots of potential customers for same day loans. You might have felt that the loan was not the right type for you, but after looking at the list, you begin to realise that there might be circumstances when you will benefit from a loan like this. It is always good to keep it in mind because when you borrow it is sensible to compare all types of loan so that you can choose the one that is best suited to you. Our circumstances do change from time to time and therefore our borrowing needs will as well. So, make sure that you keep these loans in mind as well as all other types when you need to borrow and you should then guarantee that you will choose the very best loan to suit you.