Payday loans are short-term loans that are used when the borrower needs an injection or influx of cash into their personal lives. They are typically used when they have a shortfall of cash before their next paycheck. Payday loans typically have high-interest rates and so they are best used in short-term situations.
There are a number of reasons that a customer might want to take out a payday loan – they can be used for a wide range of things. Capital Bean has put together a top list of ways that payday loans can help.
1. Borrow Money To Pay Off Medical Bills
Healthcare in the US is very expensive – some studies estimate that the typical American will spend about $300,000 on medical expenses throughout their life. Healthcare emergencies are unpredictable and so it is difficult to know when you will need money for this. If you find yourself facing unforeseen medical bills then a payday loan could help pay this off.
2. Money For Dental Work
Tooth pain can be unbearable and so using a payday loan to pay for dental treatment is sometimes unavoidable. Depending on what is wrong with your teeth or gums it might cost over $6,000. Using a payday loan to pay for this is common especially if your money is tied up with something else and you can’t wait until your next payday to get this treatment.
3. Cash To Pay For The Cost Of Pets
Dogs and cats can be part of the family and if they’re in pain then you’ll want to help. If you find yourself in a situation where your pet is injured or needs vet treatment then you’ll want to get them in to be seen immediately. If you’re running low on cash you might want to use a loan to pay for treatment.
4. Help For Emergency Home Repairs
Whether you own and live in a property or you rent a property – once in a while you’ll need to pay for home repairs. It could be a boiler, leaky roof (if you own), or a new bed or furniture. Sometimes you need cash to make sure that your home is clean and safe.
If you are running on a tight budget then you might want to use a payday loan to make sure you can make ends meet this month. You could also use payday loans to pay for redecorating materials or even to help make your home more energy efficient.
5. Need Money For Fixing Your Car
Cars are a crucial part of everyday life – especially if you rely on them to take you to and from work. In the US over 90% of people own a car – that’s a lot of cars that could break down every day. If you need to get your car fixed quickly for work or to get your children to school then you might need to borrow a payday loan to get cash fast for repairs. You might be able to fund part of the repair yourself with savings but then take out the rest in a payday loan. You might only need to borrow $400 or $500 to pay for this.
6. Borrow Money For Wedding Costs
Personal unsecured loans can be used for any reason. This makes them a popular choice to use for big milestones in your life – what’s bigger than your wedding day! You might have a small shortfall in the overall budget for the wedding and need a loan to plug the gap. Once you receive your paycheck the next month you can pay back the cost of the payday loan.
You might also want to use the loan to pay for part of your honeymoon. This could give you the financial boost you need to have the dream trip.
7. Baby On The Way – Need Cash
Parents who are expecting will need to buy a number of things – a stroller, crib, and car seat – essential to even get the baby home from the hospital. Baby items are expensive and so this is a top use for payday loans.
8. Borrow Money For Funeral Costs
Taking out a loan to pay for funeral costs is a common use of a payday loan in the US. In the US the average funeral costs $7,848. It is a very emotional time and so it is no surprise that family and friends want to send off their loved ones in the best way possible.
9. Entrepreneurs Starting A Business
Payday loans are sometimes used by entrepreneurs who are starting or running a business. As long as the owner or director of the business is confident that they can pay back the loan in a couple of weeks it should be beneficial to the business. It’s quick cash when you need it.
Where Can I Apply For A Payday Loan?
To get a payday loan you can go directly to a payday loans store on the main street, or you can use an app, apply online, or use a credit union. You can also use a loans comparison website. Online lenders are very popular in the US as you can apply online, get an instant decision and get the money within 24 hours or the next business day.
Payday loans are legal in 37 states including California and Texas.