Your Small Loans Options
There are times when your pay just does not stretch as far as you need it to. The problem with this is that you can ruin your credit rating by not paying a bill on time or by going over your credit limit. However, there are a few options out there for you. While small loans that you pay back on your next payday could be considered, there are a few other options that you should think about first.
The best way to delay your bill payment is by calling the company up and speaking to them. Depending on when you need to delay it to, there are chances that the company will agree to this later payment and it will not be recorded on your credit report. This is an excellent way to protect your report and ensure that you do not need to borrow money.
However, there are usually fees attached with paying bills late, even if you contact the company. You will need to do your research into your other options to find out whether this late payment fee is lower than the fees on your overdraft or the small loans. You will also find that you cannot pay the bill late if you are looking at over a month since your next bill will be due then too.
Another option is your overdraft. Because of your relationship with the bank, there are chances that you can gain an extra temporary overdraft limit to help you survive until payday. This will be dependent on the amount of money that you have going into your account each month and whether you regularly go over your limit. If you are irresponsible with your money then the bank is likely to say no since they will not know if they will get the money back.
You could also consider your credit card companies to see if you can get an extension on your limit, whether it is temporary or permanent. If you do not go over your limit and you keep making regularly payments, there are chances that you can gain the extension at no extra cost. However, there are times that the extension is not possible and you may need to telephone the company for another option. This is when you will need to start thinking about other options.
Small loans can help you but should only be used as a last resort. You will also need to be very careful with your lending. The best thing about small loans is that your credit history is not considered; only your current financial situation.
However, you will only be able to borrow small amounts of money – hence the name of small loans. This amount is usually less than £1000 and you will need to pay it back by your next payday. Just because the company tell you that you can take out £1000 does not mean that you should. Remember that you will need to pay the money back so you should only take the amount that you really need from the small loans.