Quick cash loans are also known as payday loans. These fast payout finance solutions are easy to apply for, widely available, and more affordable now than ever before. In this post, we want to tell you about 3 of the biggest mistakes people tend to make with these types of loan. Take a look through these errors to make sure you’re not falling into one of these traps. Let’s start with:
Using the money to start a business
Starting your own business is admirable and can sometimes prove to be a great way to make money on the side, but it’s not what a payday loan is for. At Quickle, payday loans are our main focus and we always advise customers that these solutions are intended for emergencies rather than personal business pursuits.
Businesses are always a gamble. Payday loans are meant to be paid back within weeks of your payout, so what happens if your business fails to make enough return within this time? You’ll be slammed with a bill you cant afford to pay back which then builds into more debt, especially if you ignore it completely and fail to contact your loan provider to make new arrangements.
If you want to start your own business but don’t have the credit rating or assets to get a business loan, you’ll need to save up or seek investment from an investor. Managing your finances to engineer funding can be tricky and risky in itself. If you have a great idea, you can pitch to people you know who do have the money to back you.
Using the loan to buy unnecessary luxuries
We’ve all spent more on shopping than we’ve really needed to at some point in the past. You might think you need a designer jacket, a cooler looking car or any number of other luxuries, but the truth is, you don’t. Quick cash loans are meant to be used exclusively for the most urgent costs you face. This can include things like essential groceries, plumbing repairs on your property, and travel for work.
When you apply for a payday loan from Quickle, we ask you what the loan is for. If you tell us you want to buy something you don’t need, we’ll end up reminding you that these loans are designed to help people with money shortages, not personal spends. In some cases, we’ve had to refuse people because their intentions were completely irresponsible.
We believe in the importance of sensible lending, so we do all we can to ensure that our loans are used wisely. If you don’t need an item, you shouldn’t be using a payday loan to buy it.
Thinking your account will be closed if you ignore it
Payday loans are unsecured. This means companies that provide these types of loan only survive if the loans are granted and paid back smoothly. It’s for this reason that we’re always on your side when it comes to the money issues you face. It’s in our best interest to ensure the repayment process is handled as effectively as possible. We’re not interested in sucking you into debt or milking you for all you’re worth like some people would suggest. The truth is quite the opposite!
The system only works for us when it works well for you. So if you contact us as soon as you think you might struggle to repay, we then do our best to help make new arrangements that fit around your needs. The very worst thing you can do is ignore your account completely, miss payments and attempt to shut us off. This is a terrible idea no matter what form of payment or credit you’re dealing with.
Not only will this behaviour destroy your credit score, it’ll also get you banned from our services. On top of that, if you ignore your account for long enough, we’ll be forced to apply dishonour fees which build to the amount you owe even more. In the very worst cases, we’ll take the case to the authorities, just as any other company or individual would.
That’s our 3! Keep these errors in mind to avoid making the same mistakes. Quick cash loans can be a lifesaver when you really need them. The first and most crucial question you have to ask before you agree to one is, do you really need one?
3 Terrible Mistakes People Make With Quick Cash Loans Click To TweetRead more about quick cash loans here, or in our previous blog post: How To Get A Quick Easy Loan In An Emergency
