Can I Use a Payday Loan for Home Repairs?

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Many of us do not know much about payday loans and so may wonder whether they are suitable to use for certain purposes. It is worth knowing that while a payday loan can be used for anything, they are different to many other loans. It is therefore worth understanding how they work so that you can decide whether they are the right type of loan for you.

No credit check

Payday lenders do not do credit checks. This means that even if you have a poor credit record, you will be able to take out a loan like this. This can be a big advantage to many people. If you have a credit record that is not really bad but not perfect then you may find that you sometimes get turned down for loans. This can be a problem as being turned down will show up on your credit record and make it less likely that you will be offered another loan. A lender will see that you were turned down once and decide that as you were considered to be a risk by one lender, that they should not trust you either. They may not even do any other investigating. With a payday loan you will not be turned down due to your credit score and therefore you will not have this happen on your credit report.

Quick to arrange

A payday loan can be extremely quick to arrange. In some cases, you can get the money within a few hours. This means that if you need to get repairs done urgently, perhaps if you have a leak or missing roof tiles or something like this, then you will not have to delay getting the workman in to do the work. Most other types of loans can take a significant time to arrange and it might be too late by then and you may find that you have extra damage to your property as a result. You may even lose the workman you had lined up because you will not have the money available to pay them. This means that it is really important to get that money fast.

Short term

A payday loan is always short term. Normally you will have to repay the money on your next pay day. This means that you will only have the loan for a few weeks. Some people really like this because it means they do not have the stress of a loan for very long They will not have to think about making payments each month for a long period of time as it will all be cleared really quickly. It does mean that you will need to be confident that you have the money to pay it.

Lump sum repayment
You will normally be expected to repay everything you owe such as the amount that you borrow and the interest in one lump sum. You will be able to find out how much this will be before you take out the loan by using the calculator on the lender’s website. The lender will set up a direct debit for you and this will be on your pay day. This means that you will have a large chance of having the money available to you to repay the loan. However, it is important to check that this will be the case. You may have an overdraft that is repaid first or you may have other direct debits going out. Make sure that you find out how much will be going out so that you can be sure that you will have enough to repay it. You also need to be sure that you will still have enough money left to cover all of the other bills until you next get paid. This may mean that you will have to budget carefully and reduce your spending and that you will even have to consider ways to earn more money so that you can manage.


Therefore you can see that a payday loan could be a good loan for home repairs. If you need the money really quickly and have a poor credit record then it could help to pay for the repairs. You will need to be prepared to repay the lump sum very quickly though and so this means that you will have to take a look at your financial situation to make sure that you will be able to cope. It is likely that if you are very careful with your spending and do not borrow too much then you will be able to cope. It is wise though, to have a back up plan in case you are short of money, such as ideas on how to earn more. You may also need to consider whether there are other loans which might suit you better and think about whether you would prefer those and if you will qualify for them.

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