August 2, 2021

Can I use my Payday Loan for Buying School Uniform?

Payday loans can be a handy way to borrow but if you do not know much about them you may wonder whether they are suitable for specific needs. If you have school uniform to buy then you may wonder whether this will be the right loan to use. It is good to understand how it works and therefore whether it will be suitable for you to use for this purpose.

Do I need to use it for a specific purpose?

For some loans you have to use them for a specific purpose. For a student loan you have to use it for university or a mortgage has to be used to purchase a house. However, a payday loan does not specify its purpose. Therefore, it can be used for anything. However, the terms of the loan are quite different to those for many other loans and therefore this means that you may find that it is not suitable for all purposes.

How much can I borrow?

Firstly, you need to be aware that you cannot borrow more than £1,000 in most cases. Although this would normally be enough for school uniform it will depend on how much you are buying. If you have a lot of children, they need uniform and PE kit or they are going to a school with a very expensive uniform then you may need a considerable amount of money. Some schools need coats, blazers, jumpers, shirts, ties, polo shirts, trousers/skirts. Shorts and socks as well as shoes and PE kits and this can all add up especially if you are buying all of the items at once.

A payday ender may also restrict how much they will lend you as well. Often, with a first-time borrower, they will only lend a small amount as they will want to make sure that you are capable of repaying it before they trust you with more money. You will need to directly ask the lender about this as it tends not to be something that they make clear on their website.

How do repayments work?

It is also worth understanding how repayments work. With a payday loan there is normally one repayment which takes place on the day that you get paid. You will need to repay the full amount that you borrow as well as the interest. It is important to make sure that you will be able to manage this repayment. It may be that you need to borrow money because you cannot afford to pay for the uniform all at once. This means that it would perhaps be better to consider a different type of loan which has more repayments so that you can spread the cost. If you do decide to go with the payday loan then it is important that you are aware of how much you will need to repay and that you calculate whether you can afford it. You will need to think about how you will afford the payment, which should come out of your salary, as well as all of the other things that you will need to pay for as well. It can be tricky to work this out, but it is worth it as it should allow you to be confident when you take out the loan, that you will be able to afford it.

How does the cost compare?

It is worth comparing the cost of a payday loan with other forms of lending to see whether you will be better off using a different method. Many people might compare a credit card or overdraft as they tend to lend similar amounts of money to a payday loan. These are hard to calculate the cost of though. Although they have an interest rate you can compare, you will not have to repay them within a certain time. This means that you will have more flexibility with repayments, but the cost will add up as you will be charged interest for every day that your loan is outstanding. It is worth trying to guess how long you might have the loan for and see how the cost compares.

Will I need a credit check?

If you have a poor credit record then you may worry that having a credit check could mean that you will be turned down for a loan. With a payday loan there is no credit check and therefore you will not have to worry about this. You will be able to borrow the money even if you have a poor credit record and so you will not need to worry. It is worth noting though that even if you have a good credit score, there is nothing to stop you using a payday loan, although you will have more other lending options to consider as well.

Does a Payday Loan Work for Everyone?

Payday loans are different to other types of loans and they tend to have features which make them appealing to lots of people. However, you may still wonder whether they will suit everyone and whether they are for you. It is worth understanding about the features of the loans so that you know more about them and how they work and this will enable you to be able to decide whether you think that they will work for everyone and whether they will work for you.

No credit check

Payday lenders do not do a credit check. This means that if you have a poor credit record which stops you form getting other types of loans, you will not be turned down for these loans. This can be great for anyone who needs money ad cannot borrow elsewhere. However, the loans are not just for those people who have a poor credit record but anyone is able to apply for them. So even if you have a good credit record they could have other advantages which might appeal to you and therefore they could be right for your regardless of your credit record.

Lend small amounts

A payday loan tends to be for amounts up to £1,000. This means that you will be able to borrow smaller amounts of money. This can be good if you do not need much money as many loans will be for large amounts and you have to borrow more than you need. It is better to just borrow what you need as you will not be paying out unnecessary interest on money you do not need and you will be able to repay it sooner. If you do need larger amounts then you would have to look elsewhere as payday lenders tend to only stick to these smaller amounts of money. 

Loans do not last long

A payday loan will need to be repaid in full on your next pay day. This means that it will only last for a few weeks. Many people are not keen on being in debt and so having a loan that only lasts a few weeks is a great advantage to them. They will soon be rid of the debt. What it does mean though is that you have to find the money to repay the lump sum that you owe pretty quickly. You should have the money as it will go out on the day that you are paid, but you will need to make sure that you then have enough money to be able to afford to pay for everything else that you need as well. This could be tricky for some people and it is important to be well organised with your spending to make sure that you will be able to cope. You need to think about what money you need, what things you have to buy and to make sure that you will have enough. If not, then you need to consider where you might be able to cut down your spending as well as whether you can earn more money so that you will be able to manage. It is well worth doing these calculations so that you can take out your loan with confidence.

Easy and quick to arrange

Payday loans are very easy to arrange and very quick. This means that if you need the money in an emergency then you will be able to get it easily. Some lenders may even be able to have the money in your bank account within a few hours from when you submitted the application. This means if you have a genuine emergency you will get money when you need it. Some may take a bit longer and you may have to wait a few days. This means that if you do need the money really quickly, then you need to check before you apply to make sure that it will arrive when you need it. 


So as you can e=see the features of a payday loan can work better for some people than others. For some things they will be a big advantage for some whereas others will find them to be a disadvantage. It is therefore important to find out how the loans work, and think about whether they will be the right decision or you. This is a very personal decision and it will depend on your personal circumstances as to whether you should choose this type of loan or not. It is also worth remembering that the lenders will vary too and so if you compare them you may find that one will be better for you than another. So, take some time to do some research and work things out. It can be hard to do this if you are in a panic about needing money, but try your best so that you can make the right decision for you.