There are some loans which have specific uses and so we can only use them for certain things, for example a mortgage can only be used for buying a home. However, there are also lots of loans which we can use to pay for anything that you wish. A payday loan will come into the second category and there are no restrictions set by the lender as to what it should be spent on. However, due to the nature of the loan, you may still find it is suitable for certain things more than others. So, it can be a good idea to think about what you might want to use it for with regards to this.
Lend Small Amounts of Money
A payday lender will tend to only lend a borrower between £100 and £1,000. This would normally be enough to pay for some food, but you may not necessarily be able to get that high an amount of money. This is because you could find that the lender may not be willing to give you lots. Some lenders will decide that they will only lend relatively small amounts to first time borrowers. This is because they do not do a credit check and they want to make sure that they will be able to trust you to make the repayments when they need to be made. Therefore, it might be possible that you will not be able to borrow enough money to pay for what you need, but this will depend on how much it actually costs.
Repay Really Quickly
The payday loan will need to be repaid really quickly and so this means that you will need to be confident that you will have the money available that you need. It is wise to make sure that you are aware of when it needs to be repaid and are sure that you will be able to repay it. You need to think about whether you will have the money available to repay it when you need to and whether the loan will last long enough to help you. It will be repaid when you next get paid and so that could be in a few weeks or days and you will need to think about whether this will be long enough for you to have the money for to cover the food that you need to pay for.
Other Features
It is also worth knowing a few other things about payday loans. It is possible to arrange them very quickly which can be very useful if you need to buy food in a hurry. Some can even be organised within a few hours. You will also find that some lenders will be available outside of normal working hours, which means that you can get the money that you need even when you would not normally be able to organise a loan. This can be very handy if you need the money in an emergency at a time when you would not normally be able to get it.
As payday loans are designed for use in emergencies, they would be useful for buying food. It will have to be repaid quickly which could be great for those people that do not like having a loan for very long, but not so good for those that could do with a bit longer to spread the cost over, so you will have to think about whether it suits you or not. However, this will depend on whether the lender will be able to lend enough money to cover the cost.
