Category: Online Loans

Can I use Online Loans for Anything?

There are certain loans which only have very specific uses and this means that if you want one, you can only take it out if you are buying a certain thing. However, there are also many loans which have a more general use and you are able to use them for anything without the lender worrying about what you might want to buy with it. An online loan will come into the second category so you can use them to buy whatever you want. However, the features of the loan may mean that you will be limited in this.

 Amount you can Borrow

With an online loan you will tend to be able to borrow between £100 and £1,000. Although this can be a good sum of money for some purposes, you could also find that for some items it will just not be enough money. Therefore, you will need to take this into consideration. You also need to bear in mind that you may only be able to borrow a few hundred pounds if you are a first time borrower. This is because you will find that the lenders will want to start by just lender a small amount and see whether you can pay that back on time before lending you more. They tend to do this because they do no credit check and so they need to find another way to build up trust with the borrowers. Therefore, they want to check they are capable of repaying before they then lend them more money. This may not be the case for every lender though and so if you do want a larger amount it can be worth asking a bunch of them to see whether there are any that will be willing to help you out.

How Long you Borrow for

Online loans do not last very long. They are designed to keep you going until you get paid next which means that you will have to repay the loan in full when you next get paid. Some people will find that this is not long enough for them and that they would rather have a loan that lasts longer and they can repay in instalments to spread the cost. It is a good to think about what will work for you especially considering how much money you might want to borrow. For a small amount, repaying quickly can be easy but if you borrow a larger amount then it will be more difficult and so you will need to think about whether this is something that you will be able to manage. It is always a good idea to find out exactly how much you are going to have to repay and then you will be able to work out whether you will have enough money to cover this when you get paid. Check what else you will also have to pay and this should help you to be able to make that decision and work out if there will be enough left for your to pay the loan and cover the cost of all of your other essentials.

So, although there are no specific restrictions with regards to what you can buy with the money that you get form a payday loan, the way that the loan is set up could restrict you. It could be the case that you will not be able to borrow enough money to suit your needs or that you will have to pay it back too quickly in order for it to be of that much use to you. Therefore, have a think about it and compare the different online lenders too, to check whether they really are suitable for what you need.