Payday loans are designed to cover short-term emergency expenses, and they can be taken out without collateral or guarantors. In fact, there are many situations where a payday loan can help you out. Let’s consider the most common reasons you might need a short-term loan.
Why are payday loans gaining popularity?
When money is needed urgently, Americans get used to applying for payday loans. Of course, when applying for a loan, you need to understand that it will have to be repaid within the terms specified in the contract, which means that you should seriously assess your capabilities, namely whether you will receive a paycheck or another income by the specified date.
If you assessed your solvency carefully and weighed all the pros and cons, you can proceed to the application. For convenience, now you can apply for a payday loan online. For this, you just need to fill in all the available fields in the form. And this is a really convenient service since the borrower does not even need to go anywhere to submit an application and receive money.
Payday loans also have a number of other advantages:
- speedy application;
- instant lending decision;
- flexible repayment terms;
- no hidden fees;
- loan processing 24/7;
- bad credit accepted;
- convenient payment options.
Applying for a payday loan online is also convenient because you can find a lot of interesting information related to this area, statistics, promotions and offers that are beneficial for potential borrowers, and much more.
What are payday loans typically used for?
Urgent home repairs
Imagine a standard situation: you have lost the only keys to the front home door. You had to call the locksmith who opened the lock. And it just so happened that you gave all your money for these services and now you need cash to buy a new lock. You cannot live with an open door, right? You can take out a small loan from a microfinance institution and buy a new lock.
In 2021, a study was conducted. It turned out that 18.6% of the 100,000 payday loans were taken just for urgent home repairs.
Fine payment
Some car fines can be paid with a 50% discount. The main thing is to have time to do this within a definite period after the decision is made. Many people put off paying the fine and remember it at the very last moment. Do not delay this issue, even if you do not have free funds that will allow you to meet the deadline.
Let’s say you got a $400 fine, and if you pay it in the coming days, then you will give back only $200. If you currently have no money to pay a fine, you can apply for a $200 payday loan. And overpayment will be much less than paying the entire fine amount.
Wedding expenses
A wedding usually requires large financial investments, so many newlyweds have to take out a payday loan.
The main wedding expenses include:
- booking a banquet hall in a restaurant;
- hiring wedding planners;
- hiring qualified personnel;
- purchasing clothes, including the bride’s dress;
- buying rings and other jewelry;
- renting vehicles, etc.
Various kinds of wedding expenses are often covered without any problems with easy-to-get payday loans.
Debt consolidation
If you have a difficult situation with long-term loans (such as bad credit history) and banks refuse to give you a loan, a payday loan can save the situation. It happens that payments on several loans significantly exceed the payments on a payday loan, and a reasonable way out would be to borrow fast cash to close current payments. This will help you avoid late payments and improve your credit score.
Last-minute travel deals
If you do not like the idea of borrowing from relatives and family in order to book a last-minute travel offer, you can apply for a payday loan, again. This is especially true when the travel deal is really hot. And how can you resist a trip to the ocean for only $800?
Americans often take vacation loans: such loans account for 4.2% of applications.
Toothache
Dentist services are not cheap, and it is better to plan your visit to the doctor in advance. But toothache does not fit into any plans and appears at the most inopportune moment. Neither risk your health trying to find cheap dentistry nor suppress dental pain with painkillers. You can always borrow $100-$1,000 for urgent medical treatment.
13.1% of borrowers take payday loans to cover unforeseen medical expenses.
By the way, there are organizations that can help you pay your medical bills. If you are having a medical emergency, check out these options before applying for a loan.
Holiday expenses
Imagine your best friend has a birthday tomorrow, and you expect to receive your next paycheck in a week. Of course, you can present something in a few days or even make a gift with your own hands. But at the same time, you will still feel uncomfortable if you come to the birthday party empty-handed. You must admit, sometimes you just want to do something special on such an important day. In this case, a payday loan will help you out again. By the way, this applies not only to birthdays but also to any other holiday.
On the eve of the holidays, the number of citizens’ appeals to microfinance institutions is growing. On New Year’s eve 2021, 260,000 people took out short-term loans for gifts.
Big purchase
The sudden breakdown of an expensive refrigerator, washing machine or heating boiler can be a serious problem for those who do not have any savings in their accounts. The easiest solution to this problem will be taking a fast payday loan. You cannot live without a fridge or washing machine for a month, can you?
Investments
Everyone knows about fluctuations in the exchange rate – even those who are not interested in it. But there are people who make money on it. They carry out complex analytical work, predicting the rise and fall in the value of currencies. And since the situation in this market can change in a few minutes, sometimes it is extremely important to have time to make an investment at a certain time.
This payday loan purpose cannot be called the most popular, but such cases do happen. Please note that we write about professional analysts and do not recommend you to invest borrowed funds.
Pleasing the people you love
In various sources, you can read a touching story about a man who wanted to fulfill his mother’s dream. She had long wanted to visit her homeland, Alaska. And when he did not have enough money for tickets, a payday loan came in handy.
Money for flights is borrowed quite often, but the situations of borrowers are more prosaic in this case. But flying home is not the only way to please your loved one. Some people take out short-term loans to buy tickets to the theater or go to a concert.
Car repair
Of course, it is impossible to predict any car accident or breakdown, but when they happen, the question of “how to get money urgently for car repair?” becomes more relevant than ever.
It’s great if you can wait for a more favorable financial situation and temporarily use public transport without any problems. However, for taxi drivers, trucking workers and residents of remote areas, having a serviceable car is a real necessity. For this reason, they cannot wait long for the right moment and need money for car repairs instantly.
The fastest way to solve a problem with a small car repair is to apply for a payday loan. As a rule, such loans are issued for up to 30 days. This time is enough to repair the car, deal with your financial difficulties and repay the debt on time.