Can I use Instalment loans to buy Train Fares?

If you need to pay a train fare, perhaps for travel to work, then you will need to find the money to pay for it. It might be that you are running out of money and cannot afford it or that you want to buy a cheaper season ticket but need to find a lump sum of money. If you need money like this then you might wonder whether an instalment loan will be a good option.

Can you borrow enough?

You firstly need to think about whether you will be able to get all of the money that you need from the loan that you are choosing. Make sure that you know how much the train fare will be and whether you can afford any of it without borrowing. It might be that you will be able to supply some money but not all of it. Then you will need to see whether the loan will provide you with enough money.  With instalment loans you can normally borrow up to £1,000 but this depends on the lender. You may also find that if you are a first time borrower, that the lender will only let you have smaller amounts of money. This may mean that you might not be able to borrow enough. This will depend on the lender though and it can be worth finding out how much different ones will be prepared to lend you and then you will be able to decide whether this option might work for you.

Can you afford to repay it?

It is also well worth looking at the amounts you will need to repay and when. It is likely that you will have to make a series of repayments across a few months. This should make it easier to manage them as they are spread but you will need to make sure that you can afford them still. It will be wise to find out exactly how much they are and then look at your previous bank statements to be able to work out whether you would normally be able to afford that extra money. If not, then have a look at where you will be able to cut back your spending or whether you will be able to earn some more money so that you will be able to more easily afford it.

Are you happy with the cost?

It is a good idea to think about whether you are happy with the cost of the loan. If you are using the money for a season ticket because it is cheaper than individual fares, for example, you need to find out whether, once you account for the cost of the loan, it really is cheaper. Therefore, find out from the lender how much the loan will cost and you will be able to work it out. Even if you are paying for individual fares, you still should look at the cost of the loan, to decide whether it is worth it. It might be the case that you will be better off finding an alternative way to get the money or perhaps using an alternative form of transport instead.

Do you have other options?

It is also worth thinking about whether there are alternatives to borrowing the money using an instalment loan. It is always wise to compare the different lenders that offer these loans to see which is likely to provide you with the best value for money. You should also think about whether you feel that this is the best type of loan to use. There are other loans that might be able to provide you with what you want but they will work differently. This means that you might be able to find a loan that suits you better.

It is also a good idea to see whether there are any alternative to loans so that you can get the money without having to borrow it. You might be able to work some more hours or sell some things to get some more money. You may be able to buy less things to free up some money too. Think about all of your options so that you can be sure that you have picked the right one.

It may seem like a lot of things to think about. It is worth the effort though. It could make quite a difference in many ways. You could find it will be easier to repay the loan if you pick a specific one, some options might be cheaper than others and some could be easier for you. Consider what is important to you, so that you are able to pick the option that will suit you the best. It will be worth it and it could make the difference between a good and bad borrowing experience.