There are some loans which have a specific purpose and if you do not know much about payday loans you may wonder whether this applies to these. You may also wonder whether the way the loan works will be good for buying things like petrol with. It is worth considering a few features of the loan so that you can answer this question.
Do Payday Loans have to be used for Specific Purchases?
There are certain types of loans which can only be used for specific purchases. This included things like mortgages which have to be used for buying homes. However, many loans can be used for anything we wish and a payday loan comes into this category. This means that whatever you want the money for, it will make no difference as to whether you are likely to get that money. The lender will never ask what the money is for, but you will need to think about whether you think that it is a good way to get the money that you need to pay for the petrol. However, you will still need to check whether a payday loan can offer you what you need in a loan.
How Much Can I Borrow?
It is worth thinking about how much money you need to borrow to start with. You need to think about what you need it for and how much that will cost. This sounds obviously but it can often be tempting to borrow more than you need or even less, so make sure you calculate this properly and then you will be able to see which loans will work out for you. For example, a payday loan will tend to allow you to borrow between £100 and £1000. However, some lenders may only lend you smaller amounts until you can prove that you will be able to repay it and if you do want more than a few hundred pounds then you might have to check with different lenders in order to find out whether they will be able to let you have the money that you require. If you are looking for the money to buy some petrol, then it is unlikely that you will need a great deal of money and therefore you should be able to borrow that amount.
When Can it be Paid Back?
It is also good to think about repayment of loans. Find out when you will be expected to repay the loan and how much you will need to repay. Most lenders will have a repayment calculator on their website so that you will be able to work this out. Then you will be able to check whether you will be able to afford the repayment. It does not matter what you are using the money for or how much you are borrowing but it is such an important thing to do. You will need to make sure that once you have repaid the loan, you can afford everything else that you need as well. You should have enough for the loan as you will have just been paid when the repayment is due. However, you will need to make sure that you can afford everything else that you need, including petrol, so that you are not at risk of having to borrow again and again.
Speed of Arrangement
A payday loan can be very quick to arrange. It may take as little as few hours between you applying and the money arriving in your bank. This means that if you desperately need to fill up with petrol, then getting the money this way could be really convenient. Unless you already have credit arranged, such as using a credit card or overdraft, this might be the only want that you will be able to get the money that you need this quickly. It is worth comparing lenders though as they will vary. You will find that there will be some that will be able to get the money to you within a few hours and this could be really handy if you need to fill up your vehicle very soon. Others may take a bit longer, but whether this is a problem will depend on whether you need the money really quickly or whether you can wait for a little while. It depends on how much petrol you have left and how quickly you will need to get some.
So, payday loans can be used to buy petrol. Whether you choose to use a payday loan will really depend on what other options are available to you and whether you need the money really quickly. You may also find that there are not many other types of borrowing that will allow you to borrow such a small amount of money. Borrowing more than you need can be costly and could lead you to being in debt for much longer than necessary.