There are many people that have questions about payday loans. This is because they are not loans that have been around for that long and there are still a lot of people who have never used them. This can put some people off using them, as they have not tried them before. However, trying new things is not always a bad thing and it can mean that you have more options available to you. You may feel though that they are only for certain people in certain circumstances, but this is not correct.
Who are payday loans for?
Payday loans were originally set up to help those people that had no other borrowing options. This meant that they were those people that had a poor credit record and could not get money from anywhere else. This did not mean that the loans were restricted to those people though. The lenders never check and are happy to lend to anyone that applies as long as they fit in with their criteria. They do have different requirements but generally you just need to be over 18, a UK resident, have a UK bank account and an income. There is often no specification as to where that income needs to come form so it could come from benefits, pensions or salary. However, specific lenders may have their own specific rules about who they lend to and you will need to look at those to work out whether they will lend to you.
Do you need to be working to have one?
So it is possible that you will not have to be working in order to have a payday loan, although you will need to have an income. It is worth making sure though, that you feel that your income will be enough, whether you are working or not. You need to find out how much you will be expected to repay and when and decide whether you will be able to manage that repayment. Consider that you will not only have to repay that loan but you will have to cover the cost of all of your other outgoings as well.
You should find that the lenders will have information on their websites about how much you will have to repay. Many have a calculator where you will be able to enter details of how much you want to borrow and when you next get paid so that you can work out how much the loan will cost. You will then know how much you will need to repay as well. This will enable you to calculate whether it will be something that you can afford. It is a good idea to actually check your bank statements to be completely sure though. We might feel it looks quite cheap but actually find that it is harder to manage than we might think. Make sure that you check all of the other things that you need to buy as well. You need to make sure that you will be able to afford those too.
Can retired people have them?
So it could be possible for a retired person to have a payday loan. You will need to check with individual lenders but normally their terms would not seem to indicate that they would not lend to a retired person. You will need to have an income though and most retired people will have a pension income and that could be enough for them to manage on. It is also really important to make sure that you are able to confidently repay the loan. As a payday loans tend to be repaid in a lump sum, it will mean that you will have a lot of money to find all in one go. This can mean that you will need to be sure that you have enough to pay for that as well as anything else that you also need to pay for. It can seem like a lot of fuss, to check out everything like this. However, it is important because it will make a significant difference to your borrowing experience. You will not want to in the position where you either struggle to repay the loan or struggle to pay for other things as a result of repaying the loan. It can be wise to therefore spend a lot of time making sure that you are confident that you will be able to manage. If you feel you cannot then you may be able to find a cheaper loan, an instalment loan or perhaps think of ways where you can reduce what you spend or maybe even earn a bit more to make it easier to manage everything. It is worth considering every possibility so that you can be confident in your decision and will have no reason to regret it.