Only 40% of Americans can afford to pay for an emergency that calls for $1000.
A payday loan comes as a saving grace for people who are in urgent need of cash. These loans are quick and easy to process, as compared to other credit facilities.
In fact, lenders offering the best online payday loans only take a few hours to a day to approve your application and disburse the funds.
Payday loans offer quick and easy cash, even for people with less than perfect credit scores. But what are some of the things you should buy with this facility?
Here are some recommendations.
1. Credit Card Consolidation
If you have a credit card or several cards that you have charged to the maximum limit, you can use a payday loan to consolidate the payments.
This is by grouping the payments into single monthly payments.
Financially, this is only a great idea if the interest rate on your loan is significantly lower than the annual percentage rates payable on your cards.
2. Refinance Your Student Loans
You can use your loan to refinance your student loan and get some reprieve.
Note that, this is only useful if the balance on your loan can be cleared with the payday loan granted.
If not, then it might not be a good financial choice.
For one, if some loan forgiveness programs are initiated, later on, you will be barred from such relief.
Secondly, once you refinance, you become unable to deduct interest payments from your income tax.
3. Pay for an Event
This can be a small wedding, christening, graduation party, or any other event that will take up some cash.
If you can get a payday loan whose interest is significantly lower than your credit card interest rate, then it might be a good idea.
4. Buy a Better Credit Rating
If your credit history only has credit card debt, diversifying your credit with a payday loan and repaying it on time can be favorable to your credit score.
This loan can also absorb some of the costs you typically charge on your credit. What this does is lower your credit card utilization ratio.
A credit card utilization ratio is the total credit you use Visa vie your total credit limit. The lower the amount of credit you use, the lower your utilization ratio, and the better your credit score becomes.
5. Gym Membership
Experts recommend 150 minutes of aerobic exercises a week.
Buying a gym membership is one way to ensure you do not skimp on this, and that you invest in your health.
Most people find that paying for a gym membership in advance incentivizes them to actually attend their gym sessions.
Aside from a gym membership, you can buy some easy to use gym equipment to allow you to work out from the comfort of your home.
For starters, you can buy resistance bands, dumbbells, an exercise ball, and so on.
6. The Best Online Payday Loans Can Buy You Knowledge
One of the best things to do for yourself is to keep learning, and this takes different forms. Taking a class is one of them.
Martial arts, pottery or a foreign language are good options.
Not only will you gain a new skill, but this will also serve as relaxation time and open up opportunities to socialize and network.
7. A Mattress
This might not seem all that important in the grand scheme of things, but indeed it is. A bad mattress means poor sleep posture, which can lead to joint and muscle pain.
It can also severely affect your quality of sleep, which affects your productivity, mood, and ability to focus. Ultimately poor sleep affects your quality of life.
This makes investing in sleep just as important as investing in anything else, making a good, sturdy mattress a worthwhile long-term investment.
8. Car Insurance
Sometimes, your car insurance premiums will fall due at the worst possible times. Worse still, a sound comprehensive cover does not come cheap.
Downgrading to a third party cover is always an option, albeit a risky one. A payday loan can help you buy a good comprehensive cover for your automobile.
Payday loans are processed within a short time, enabling you to make your insurance payments on time.
If you only have one car at your disposal, then you appreciate how much of an inconvenience it can be when it breaks down.
Aside from paying your car insurance, you can use this loan to pay your mechanic to fix up your car.
9. An out of Town Trip
At times, work, kids and life makes us too busy to unwind and reflect. This is precisely what you get by taking a trip out of town.
If you time it during the offseason, you can find pretty decent accommodations at a very fair cost.
The next time you get a window, why not rally up a group of friends and take a day or two off? The benefits of relaxation to your mental health make this worth your while.
10. A Minor Renovation
Few things in life are as stressful as needing an urgent home renovation and not being able to afford one in good time.
Imagine a leaky roof, broken faucets, or a mold problem.
These are things that you need to get fixed immediately, to avoid more damage and possible harm to yourself and your family.
Personal loans have more friendly terms than payday loans, but they take time to process and lock you out if your credit is not good enough.
The next time you have a renovation emergency and a bit strapped for cash, consider shopping around for the cheapest payday loans available.
Your Options Are Endless
While these are only ten ideas of some of the things you could get with the best online loans, your options are limitless.
At Bonsai Finance, we pride ourselves in meeting you at your point of need. To do this, we provide access to an array of well-priced loans to meet your every need. Do you want to find out more?
Feel free to contact us with any questions you might have on credit facilities.
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