Unfortunately, not everyone enjoys financial liquidity and always has a full bank account. Sometimes it’s hard to make ends meet and pay all the maintenance costs effortlessly.
When there is not enough money to pay utility bills, a payday loan is often the only solution. After all, no one wants to lead to a situation where the house lights goes out or hot water stops flowing.
Do non-bank companies grant special loans to pay off bills?
Non-bank companies do not offer special loans dedicated to people looking for cash to pay bills. This does not mean, however, that the borrower cannot allocate the funds received for this purpose. Loan companies never expect information from their clients about the use of borrowed money. All funding is provided under similar conditions and can be used voluntarily.
What should the payday loan to pay bills be?
A person who decides to take out a payday loan to pay off bills should be especially prudent and cautious. Making a commitment to cover other receivables is always a risky solution. Before choosing a specific offer, it is worth analyzing your own economic situation and adjusting a payday loan to it. In addition, it is good to check that:
- the application procedure is simple and the formalities are kept to a minimum,
- the loan can be taken out 100% online,
- the decision to grant funds is immediate,
- transfer of funds to the client’s account takes several minutes,
- the contract is fully understandable and clear for the borrower.
Where to find a payday loan to pay bills?
The easiest way to find payday loans is online. All you need to do is use a web comparison engine that clearly presents the ranking of offers available on the market. Financing that will cover the costs associated with the bills usually does not exceed $1,000.
How much is a loan to pay bills?
The good news is that a loan to pay bills can cost $0. Financing not exceeding $1,000 is available for free in almost every non-banking company. However, it should be remembered that this promotion applies only to new customers, so it is not possible to use this opportunity twice with the same creditor.
In the case of larger amounts of debt, installment loans or re-using the offer of a selected non-banking company, you must take into account a higher cost of debt, which includes:
- capital – the amount that the borrower receives,
- interest,
- APR (Annual Percentage Rate) – an indicator showing the total cost of the loan,
- additional fees and commissions.
To be sure of the costs associated with the selected financing, it is worth using a loan calculator, which is available on the website of each non-banking company. After entering the debt amount and repayment date, the screen displays the amount of the payment and the actual cost of the loan that the borrower will have to pay.
Who can apply for a bill payday loan?
Any adult who has any source of income can use a payday loan to pay bills in a non-banking company. To receive financing, it is enough to meet a few completely basic requirements. They usually include:
- American citizenship,
- home address in the country,
- active mobile phone number,
- bank account,
- valid ID card,
- proof of income.
A payday loan to pay bills – is it better in a bank or a loan company?
A person who lacks money to settle bills is most likely in a difficult economic situation, and thus does not have the creditworthiness that would allow them to receive bank financing. Bank loans tend credit check and issue higher amounts and are spent on larger investments rather than covering maintenance costs.
Therefore, if someone has bad credit and did not have enough cash to pay a gas or electricity bill, and therefore needs a quick financial injection, it will be easiest to use the offer of a loan company.
Is a bill payment loan a good idea?
A loan taken to pay the bills is a reasonable solution only if the borrower is sure that he will be able to pay the debt in a timely manner. Each delay in repayment is associated with additional costs and interest, which may only aggravate the debtor’s financial problems. If they accumulate contractual penalties and interest, there will be only a step to the spiral of debt.
What other options can we use?
If the borrower has doubts about his financial capacity, it is better that he treat the loan as a last resort. It will be safer to submit a request to postpone the payment deadline due to the difficult economic situation to the gas company, electricity supplier or housing cooperative.
However, in order to solve the problem permanently, it is worth trying to learn to save better or look for additional work, even occasional, which can repair your home budget.
Worth knowing:
A loan to pay bills can actually be any financing available in the offer of non-banking companies.
Every adult with regular financial income, not necessarily based on an employment contract, can easily apply for a loan in non-bank companies that usually accept any type of income source.
A loan to pay bills can be taken out in a few minutes by carrying out the entire procedure online.
The only document needed to complete the loan application process is a valid ID card.
Any financing taken out to pay off other liabilities should be a last resort, as it risks building up debts.
FAQ
What is a utility loan?
This type of payday loan is suitable specifically for paying bills for gas, electricity, etc. Usually issued in amounts up to 1000$.
What documents are needed to get a utility loan
Non-bank companies are becoming more and more popular, among other things, because the procedure for obtaining a loan is simple and devoid of numerous formalities that are encountered when applying for financing in banking institutions. To get a loan, you only need one document, which is your current ID card.
In the case of online application, the customer is asked to enter the series and number of the ID card in the appropriate field of the form. You don’t even need to attach a scanned version of the document. Loan companies usually do not require any certificates of earnings or source of income.