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Should I get a Payday Loan to fund gambling?

Whenever you take a loan you need to make sure that it is the right decision. There are different things that you need to think about and you need to be sure that the loan is right for you. It is worth asking yourself a series of questions –

  • Can I afford the loan? It is well worth looking at how much the loan will cost you. Loans can be quite expensive and you should be able to find out exactly how much the loan will cost you. This will allow you to decide whether you can afford to pay this much money for a loan. Think about whether you feel that what you are buying is affordable when you add in the loan costs to the cost of the item.
  • Can I afford the repayments? – you then should look at how the repayments work. For some loans you will have a repayment schedule, for others it is more laid back and you pay what you want or you have to repay all at once. Look at how much you have to pay and when. Then think about whether you would be able to afford this. If you are not sure then it can be wise to take a look at your past bank statements and analyse them to see whether you would have been able to afford it. If not see whether you could have made some spending changes in order to then be able to afford them.
  • Can I Justify the Expense? – it is worth thinking about how much the loan costs and whether you can justify that expense. Think about what you are spending the money on and whether you think that it is really worth it. Consider the extra cost of that item because you are using a loan to pay for it and any stress that you may suffer as a result of having the loan. You may still think that the loan is the right idea or you may decide that you are better not getting it.
  • Is it the Right type of loan? – you also need to think about whether the loan that you are choosing is the best one for you. Some loans are easy to select as they are designed for a specific purpose, such as a mortgage. However, it is not always that easy to pick a specific type of loan for your purpose. However, if you find out about the loans that are available and how they work, you will then be in a better position to make the right choice.
  • Is it the loan that offers the best value for money? – Once you have chosen a loan type you need to make sure that it is worth it. Compare lenders to look at their prices as well as what they offer for that. Then you will be able to decide which will give you the best value for money.

You should do this for every type of borrowing. It can seem like rather a laborious process but it is worth it. You need to be able to justify the loan to yourself to start with and think about whether you should be getting a loan or whether it is not a good decision. You can also look to see whether you can afford the loan. Then when you are repaying it you can do so with confidence because you know that you can afford it as well as without regret as you know you picked the best option for you.

If you are looking to fund gambling then this is probably not a good option. It is something which is not essential and so taking out a loan which is meant to cover emergencies and using it for a luxury spend such as this, would be seen as bad debt. This is because you will not better yourself financially by spending money on this sort of thing or better yourself in any way. It can be tempting to think that you will gain from gambling, but in fact most people do not. Even if people win they will tend to gamble their winnings and therefore lose in the end. You are therefore unlikely to profit from the gambling. It is very easy to think that you might profit from it, but the odds will always be against you. You could therefore risk losing all of the money that you borrowed and then have a loan to repay that you will then have nothing to show for. A payday loan is an easy way to borrow money for something like this as there is no credit check and it can be organised quickly. The problem with this is that you do not have time to change your mind and you could get the money and gamble it away before you have even properly considered the consequences of your decision.

Is a Payday Loan only for those with a Low Credit Score?

If you have hard of a payday loan then you may think that it is just for those with a poor credit score. You may know that the payday loan actually came about to provide a borrowing solution for those with a poor credit score because there were not any other borrowing options for them. This may lead people to thinking that it is a loan only for those with a poor credit rating, but it can be used by anyone.

How the loan compares
As the loan is available for everyone, whether they have a poor credit rating or not, it is good to consider it if you are looking at different loans. It is a very short-term loan and so it may not be suitable for all needs and it will only give you access to a few hundred pounds, which again will not suit all needs. However, it is an option that is good to review as until you know how it compares to other loans then you can decide whether it is a good choice for you.

A payday loan can be arranged very quickly and there is no credit check. Most other loans do require a credit check and can take some time to organise. You may be able to get the money within a few hours if you choose a payday loan. You can borrow a few hundred pounds, which may or may not be enough to help you out. A smaller loan can be better as it means that you are able to cope with it more easily but it may not be enough to help you out. You have to repay the money when you next get paid in a lump sum. This can be good as you are able to clear the loan very quickly. However, it can also be difficult because you have to come up with the money all in one go and it could leave you short for the rest of the month to pay for other things. Other types of loan differ a lot, some with strict repayment schedules, some where you only have to pay a minimum amount, so some could be easier for you to personally manage than others.

One big issue with payday loans is the cost. Many media reports have had scare stories about people who find them hard to cope with and say that they are expensive. They are a risky type of loan because lenders are not doing a credit check. In order to protect themselves against the costs of borrowers not repaying the loan; they charge more. Tis can be off putting but if you want the advantages of a payday loan then you will have to be prepared to pay for them.

Advantages of a payday loan
The advantage for you of payday loans online will depend on what you are looking for in a loan. If you need money really quickly then it could be the best option available, especially if you have no credit card or overdraft facility and so need time to apply for one. If you want a short loan that will not last long then again it could be a good choice for you as it has to be repaid within a few weeks which is probably one of the shortest repayment schedules for a loan. If you want a loan for a small amount of money then again it can be a good choice, as some loans give very high minimum amounts.

So, a payday loan should not be discounted as a loan choice just because you have a good credit score. It does have many differences to standard loan and some or all of these could make them a better option than other types of loan. Whenever you are picking loans you should be careful with your decision though. Consider what you want from a loan for example, how much you need to borrow, what repayments you can afford, how long you want the loan to last and things like that. Compare the different types so that you get a good idea of what they offer and how they compare to your requirements.

You also need to compare different lenders once deciding on what type of loan to go for. This will help you get a loan even closer suited to your needs and should also allow you to find the one that offers you the very best value for money.

This can take some time to do, but it is worthwhile. Keeping open minded about what type of loan will be the best for you will mean that you have the best opportunity to find the right loan for you at the best cost. It is worth the effort as you will end up with the best choice.