Can I use Online Loans to Pay for Charity Donations?

Online loans are used for many things, but you may wonder whether they can be used for certain specific things such as charity donations. Many people like to donate to charity, either because that charity has helped them or their loved ones or because they feel that what they are doing is really good. It can also make us feel good that we have given to a good cause. However, giving is not cheap and it might be that we want to find money to give to a cause. Perhaps we feel that they need the money urgently and we cannot delay or that we would not otherwise be able to afford it.

There are many loans such as ones with no credit check that you could potentially choose from in order to make your donation. However, there are probably quite a lot that you already know a lot about. There are some loans though, such as online loans, that you may wonder about. It is worth understanding what the advantages and disadvantages are so that you can decide whether it will be a good option for you.


Online loans have a selection of advantages which make them different to other loans, so it is worth knowing about these.

Limited credit check– with most loans you have to have a thorough credit check. This will enable a lender to decide whether they feel you are capable of repaying it. They will look at things like how successful you have been at repaying other loans, what you record is for making regular payments such as paying utility bills and what your income and job is. They will each have a different way of using this information to decide whether they feel that you will be capable of repaying their loan. They will then let you know whether they are willing to give you the money. An online lender will not do a thorough check. They will not be interested in your history, they will just want to check to make sure that you have a regular payment going in to your account. They may also use it to check your identity as part of the legal checks they need to do.

Quick to arrange– Online loans can be considerably quicker to arrange than other loans. This means that you may be able to get the money that you want within a few hours, which is very fast. You may even be able to get it during the night or at the weekends if you need it then. With a more traditional lender you will tend to find that the money is only available during working hours and that it could take considerably longer before you get it.

Borrow small amounts – if you only want to donate a small amount of money then you could find that some loans will not be useful. Sometimes lenders will have a very large minimum amount for lending and this means that you will have to borrow a lot more money than you need. This can be more expensive as you have to pay more interest, it can mean that the loan lasts longer and it may not feel comfortable owing such a large sum of money.

Repay quickly – it can be much easier if you have a loan that you repay really quickly. Not having a loan hanging around for too long can be a good feeling. Knowing that is a paid off can bring a sense of relief. It can also be cheaper if you repay the loan more quickly.


There are some disadvantages to using online loans as well. It is also good to be aware of these so that you can be sure that you are making the right decision.

Limited lending- an online loan tends to just be for a small amount of money. You can often borrow up to £1000 which could be plenty for a charity donation but it will depend what it is for. You may also find that if you are a first-time borrower, you will not be offered that much money. Some online lenders will only lend small amounts to start with so that they can be sure a borrower will repay before they take risks with higher amounts.

Costly – compared to some other loans, the equivalent annual interest rates on these loans is high. However, this is partly because they add in an admin cost which for a longer term loan, would be spread across a lot longer and also because they take a high risk when they lend. If you calculate the actual monetary cost in pounds, you may not feel that it is that expensive.

One repayment – usually with an online loan, there is just one repayment. This means that the loan is repaid really quickly. This can be particularly good for anyone who does not like the idea of beingin debt for long.

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