Thames Valley Investment Network

So a payday loan is different to other loans in a few ways Firstly, they can organise loans really quickly This means that if it is not long until you plan on taking your holiday or until you need to pay for it then they will be able to help with that They also do not worry about your credit record which means that if it is pretty poor then you will not need to worry about it and you will still be very likely to be approved for the loan Basically, they will lend money to most people for a small amount of time The loans are arranged super quickly and you will have to repay the full amount when you next get paid This means that it is likely that you will have the money available to pay it and that you will find it easier to repay the loan

Will they give enough for a holiday? The amount that you can borrow with a payday loan is not massive Most lenders will provide £100-£1000 and so this could be enough to pay for a holiday but it will depend on what the holiday is that you have decided to go on You will also need to be aware that if you are a first time borrower then you might find that you will not be able to borrow such a large sum of money This is because the lender will want to build up some trust with you first They will want to make sure that you are able to repay a small amount of money before they offer you a larger amount Not all lenders will do this though and so you might want to compare them so that you can find out Of course, even a smaller amount might be okay anyway if your holiday is very cheap or if you have some money to put towards it

Are they good to use for a holiday? The main disadvantage of using a payday loan to pay for a holiday is that you have to repay it when you next get paid This means that you will not have the loan for long It can be useful in some circumstances, but if you were hoping to repay over a longer time so that you can use other spare money to pay for other things towards the holiday such as camping equipment, suitcases, clothing or things like this, then it may not be ideal However, there are loans that are very similar to payday loans, called instalment loans where you can repay in instalments and this could be a more useful option

There may be other loans that are better However, it will depend on your circumstances as to which loan is the best You really need to think about what it is that you are looking for in a loan and then you will be able to see whether there is one that matches up to that There could be several or there could be none and it will just depend on what your expectations and requirements are

It is worth spending the time doing the research though If you do not then you could regret it You might find that you will be signing up to an unsuitable loan and you could regret it, It is good to make sure that the loan you end up choosing is suitable for your needs and gives you good value for money You will then have a much better borrowing experience

Can I use Payday Loans if I am Self Employed?

If you are self-employed then it is possible that you will find it difficult to get a loan due to your credit rating You may really need some money and wonder whether there are any loans which might be able to help you It is possible though, that you might be able to use payday loans because they work a bit differently to other loans

Who can use payday loans? Payday loans are not like traditional loans and have very few restrictions on who can use them This is because they were specifically set up to help people that have no access to other loans and need money desperately This means that they have very few rules on who can use them There are a few though:

• Over 18 – UK law dictates that only adults can borrow money and officially you do not become an adult until you are 18 years old
• It is pretty unlikely that you will need to borrow money below the age of 18 anyway
• UK resident – it is necessary to be a UK resident in order to borrow from a UK lender
• You will need to prove this by providing some address ID, such as a bank statement or utility bill normally
• UK bank account – the lender will pay the money that you are borrowing straight into your bank account so you will need to have one in order to get the loan
• They will also set up a direct debit so that they can take the repayment from your bank account as well, so you will need one for this as well
• Regular income – this might seem like a tricky one but it may not be at all
• You will need to choose a payday that you repay the loan on
• Most people that are self employed will have more of an ad hoc income stream but it could still be very possible to nominate a day when you want to repay the loan
• This should be acceptable to most payday lenders

Are they suitable for the self-employed? The reason most lenders will not lend to someone that is self-employed is because their income is not guaranteed in the same way as an employee It is highly likely that the income will not be regular or guaranteed and this means that they will be reluctant to lend as they will see it as too risky They like to be sure that they will get their repayments on time and in full and a self-employed person may struggle with doing this

However, payday lenders do not worry so much about things like that, they do not even worry about your credit report and whether you have struggled with repayments in the past Therefore, they are very likely to still lend to a person even if they are self-employed But just because they will lend, does not necessarily mean it is a good idea

It is wise, with every loan that you are considering, to make sure that you are confident that you will be able to repay it With a payday loan, this can be especially important because you have to make the repayment all in one go The loans work by lending you just a small sum of money until you next get paid and then you are expected to repay it all When you are self-employed you may not be guaranteed a certain income and this means that you will need to be even more cautious to make sure that you have enough money to repay it when you need to It is well worth trying to predict how much money you will have coming in and also thinking about what you will need to pay out You will need to pay out all of your normal household expenses and you need to be sure that you will earn enough money to cover those and the loan repayment

It could even be worth having a few extra ideas, perhaps ways you could earn extra money or reduce what you are spending so that you are sure you can repay it Hopefully, your self-employed earnings will be enough and you will be able to cover your other costs too However, it could be a good idea to also make sure that you have some ideas that you know will work and that you can fall back on Maybe you have some things you could sell, some things you could stop buying, some extra work you could do or things like that The main consideration with a payday loan is that it will need to be repaid really quickly, perhaps even in a few days, so you will need to make sure that any ideas you have are things that you can do really quickly