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Thursday, June 19, 2014

Payday Loans for Students

You might have assumed that the only people eligible for this type of finance would be those in full-time employment but this is not necessarily the case. For tips on how to apply and get approved for credit from companies such as cash sorted and other payday loan specialists when you are still an undergraduate, read the short guide below. However, remember never to borrow more than you can afford to repay, no matter what type of financial emergency you may be facing.

  1. Preparation – the more prepared you are, the easier it will be to apply for credit and the more likely it will be that your application is accepted. Most brokers and financial institutions that provide short-term loans will be looking for the same things: proof of identity, proof of income and a bank account with a direct debit facility. Make sure you have all these details to hand before you apply and the process will be simple and painless. The majority of firms will accept scanned copies of the documents in question so if you make sure that you have access to a scanner you should be able to complete your application in a matter of minutes.
  1. Calculations - before you apply for any type of credit, establish whether you actually really need the money first. Every type of credit agreement will attract interest charges so it is not worth borrowing cash unless you absolutely have to. Enter your monthly salary and expenses into a spreadsheet application to work out your discretionary income. If it turns out that you will just about have enough for what you desire, you can save both time and money by not applying for a loan in the first place. If you find that you do need to borrow money, you will know exactly how much you require and how easy it will be to repay after having performed these calculations.
  1. Consultation – as an undergraduate you may be very smart and academically gifted. However, there is one thing that you will almost certainly have a limited amount of and that is experience of the real world. Rather than sighing and rolling your eyes, do yourself a favour and get in touch with your parents or a trusted older friend before you apply for a loan. Run the figures by them and see what they have to say. You may well have already come to the right decision but there is no harm in soliciting opinions from those with more experience than you.
  1. Determination – assuming that you are able to borrow the sum of money that you need, make absolutely sure that you repay it on the due date and not a single day later. If you are determined to meet your financial obligations, you will avoid penalty charges for late repayment and establish a credit history that will stand you in good stead should you need to borrow again in the future. The company with which you deal will almost certainly be more than willing to lend you money again if the first loan is repaid on time and your overall creditworthiness will begin to improve as far as other financial institutions are concerned as well.
  1. Restraint – if you are considering borrowing money against a part-time salary because you fancy going out for a drink and you don’t get paid for another week, it is probably better to think again. On the other hand, if you have a once in a lifetime opportunity to see your favourite musicians perform at a local arena and you don’t have quite enough cash for a ticket, you can probably justify the expense of borrowing the sum required. Restraint is the key word to remember here. Short-term credit facilities can be very useful when you are faced with an unexpected expense such as a repair bill for your car or motorbike, but they should not be used for frivolous reasons.
If you are in any doubt whatsoever about the suitability of a particular loan agreement for your needs, do ask for advice rather than taking a risk. Always be careful where your personal finances are concerned, to avoid problems in the future.