For example, if your car unexpectedly breaks down, you may find yourself struggling to pay the repair bill. In this case, taking out a payday loan is one way to cover your emergency expenses.
What's the difference to other loans?
The key difference from other types of loans is that payday loans tend to last a short period, only about one or two weeks, to be repaid upon you getting your next wage. Due to their shorter length, there will be a higher APR and a relatively small credit limit.
When do I use payday loans?
The proper time to use such a loan could be in examples like the car repair bill above, but really can apply to any situation where you know you'll have the money you need in your next wage, but you need it straight away. It wouldn't be advisable to take out a payday loan over and over again to cover a recurring charge, nor would it be a good plan to use it on something unnecessary. Only use a payday loan for a sudden necessity or emergency.
How is Sunny better than a payday loan?
However, there are other short-term loan options that provide further benefits above a standard payday loan. Sunny's payday loan alternative is a line of credit. We provide a clear pricing structure with flexible repayment options so that you can understand and customise your loan for your personal situation. Our line of credit gives you immediate access to an entire credit limit, which is unlike a payday loan in that you choose how much to take. You can load portions of your limit into your account, and draw more if needed. At the end, if you haven't used the full line of credit, you only pay interest on the portion that you've actually used. Better still, our loan can be paid in instalments that you select, not just one lump payment at the next payday. With 24/7 availability and cash sent within minutes of application approval, Sunny's loans are a great alternative for solving your short-term cash needs.
How do Sunny loans work?
Honesty, transparency, and fairness are deeply engrained in Sunny's core business, which is why we've designed our loans to be as straightforward and flexible as possible. Below are some of the most important points regarding Sunny loans. We encourage you to compare our loans to other short-term lenders.
Our loans have no fees, guaranteed.
We give you 5 days to change your mind and repay the principal with no fees and no interest — you can do this once per month, no questions asked.
Applying takes about 4 minutes and delivers an instant decision.
If approved, the cash you borrow is sent to your bank within 15 minutes.
Take the whole amount at once, or small amounts up to your credit limit as needed — it's up to you without requiring a new application.
You only pay interest on the amount from your line of credit that you actually use — use less, pay less.
Sunny Tips guide to finance management allows you to take tests to lower your interest rates.
Sunny's Flexipay™ allows you to change your payment schedule along the way.
Get your finances sorted
With so many lenders and loan types to choose from, it's important to efficiently research your options. We encourage you to view our lending guide articles to help you in the decision-making process, and use Sunny Tips to clear the clutter and get your finances sorted beyond just your next payday.