If you have a poor credit record, then you may be aware that there are loans available to you. Emu.co.uk is the perfect example. These tend to be short term loans and you may have seen them advertised on the television. You may wonder whether it is a good idea for you to take out one of these loans. It is well worth thinking through the decision before you make it.

Can I repay it?

The first thing to think about is whether it is possible to repay the loan once you take it out. There are different types of poor credit borrowing, but the main ones tend to be pay-day loans. These often have to be repaid in a lump sum, but some may have the option to repay in instalments. Although the amounts you borrow tend to be fairly small; perhaps a few hundred pounds or up to a thousand, they still need to be repaid and this can still be difficult for some borrowers.

It is good to think about how you might manage this sort of loan repayment. Consider what might happen if you borrowed a lump sum of money and then had to repay it within a few weeks. How you would you find the money to pay it back, remembering that you have to repay fees as well as the amount of money that you borrowed. Think about how you normally manage between each time that you get paid. Do you normally have money left over that you could use to repay a loan? It is unlikely or else you would not be considering borrowing money in the first place. If you did need to make a repayment, you need to think about what you would do in order to manage it. Think about whether it would be possible for you to earn some extra money to cover the cost, but if you could do that whether it would be better to do that instead of getting a loan, rather than to pay it off. You might be able to reduce how much you are spending too, perhaps by cutting out luxury items. Again this might be an alternative option to borrowing.

Are there other options?

It is good to think about the alternatives available to you. There may be different types of borrowing that you might be able to choose from. You might be able to try different sorts of loans, it is worth finding out about the different types to see which might suit you the best. There will be options out there and you need to think about them. You may be able to take out different types of loans, for example or you could see whether there are different ways to get money apart from borrowing. As mentioned above, it might be possible to earn more or spend less and that will allow you get more money without borrowing. You may be able to sell things that you own too, in order to get some extra money as well. Things that you no longer need, might be useful for other people and you might be able to sell quite a few things such as books, CDs, DVDs, clothing and accessories which could raise some much needed cash.

Do I really need the money?

It is worth also asking yourself whether you really need the money. Loans like this are designed for using in an emergency, so you need to consider whether you will be using the money in an emergency. Think about what the money is for and whether it is really necessary. For example, if you need the money to pay a bill, then start by calling the person billing you and asking whether you can defy paying until you next get paid or spread the payments a bit more to make it more manageable. If you need to replace a broken item, consider whether it might be cheaper to get it repaired or whether you can wait to replace it until you have saved up the money. You may not manage for long without a fridge, but if your problem is with a washing machine, you could go to a laundrette instead or borrow a friends or family members. If you need to buy food, pay a tax bill or are at risk of being cut off if you do not pay up quickly, then you may have no other choice to get the loan.

If you do decide to get a loan then it is wise to not only search around for the right type of loan to suit you but also for the one that will cost you the least amount of money. You will be able to compare costs of the loans online, but it is wise to also be aware of their repayment terms as discussed earlier. You should also be aware that they will differ in the late repayment fees that they charge as well. The late fees can be very significant and so it is worth being aware of what they are even if you think that you will not miss a repayment. You might decide to go for a specific loan over another because they have lower late fees, but their main fees are very close.