If your car breaks down and you do not have the cash to pay for the repairs, you may need to come up with a way to get the money you need quickly. Without a car, you will not be able to get to and from work, and this would put you in an even worse financial state. When this happens, there is an option — applying for a payday loan. Payday loans are not the best option for all situations, but they are perfect for car repair bills. Here are three things to consider as you try to decide what to do in this situation.
Is There Another Option?
If you do not want to get a payday loan, can you think of another way to get a loan quickly? There are very few options to use in situations like this, especially if you need cash fast. The reason some people prefer using other options is due to the high rate of interest you must pay for a payday loan. The average interest rate on a payday loan is between 391% to 521%. While this is a high rate, it might be the only option you have when it comes to borrowing money.
Avoiding a payday loan is something you could do if you have a close relative or friend that would be willing to loan you money. Another option would be to sell something you have. If you have excellent credit, you might also be able to get a personal loan from a bank. The problem with personal loans is that they do not typically go through very quickly.
Why Choose A Payday Loan?
When there is no other option that will allow you to get the money you need quickly, a payday loan is a good choice for several reasons, including:
- They are fast – When you apply for a payday loan, you are likely to receive the money within 24 hours. In some cases, you can instantly receive the cash you need.
- Almost anyone will qualify – The second benefit of a payday loan is they are easy to get. You are not likely to get turned down as long as you have a job and can verify your identity. Some payday lenders also require having a checking account, and some may require giving a post-dated check. Every payday lender may have different requirements, but payday loans are still one of the easiest type of loan to get.
- It will help you keep earning income – If you cannot pay your car repair bill and rely on your car to get to work, getting a payday loan will help you avoid losing income. With the proceeds, you could pay the bill and have your car to continue driving to work. If the car has to be in the shop for a few days, you could use the proceeds to pay for a rental car while you wait.
Payday loans come in many shapes and sizes. If you decide to get one, there are several things to look for.
What Should You Look For?
One of the main things to look for when getting a payday loan is the length of time you will have to repay the loan. Most payday loans are due within 14 days, but this varies. You may be able to find one that offers more time. In addition, there are some payday loan lenders that offer installment loans, which are slightly different from payday loans. With an installment loan, the full balance will not be due all at once. You will be allowed to make payments on the loan.
The other features to look for with payday loans is the speed in which the proceeds are issued and the interest rate on the money.
If you really need to get your car fixed soon, getting a payday loan might be your best option. To learn more about these, contact a lender that offers payday loans.