Cash loans - can they save the day? They can, if you find yourself in a financial emergency and don't know what to do. There are times in life when expenses will surprise you - a medical emergency, a car repair, a household expense that you need to make - they are all necessary, but they all cost money you do not have.
Luckily, you can cover these mounting expenses with a payday loan that you can get quickly, and even in cash, so that you can solve your issue swiftly and painlessly. Keep reading to find out more about why a cash advance can be your best bet.
What Is A Cash Loan?
Cash loans are small unsecured payday-type loans that you can get in cash. Their unsecured quality means that a borrower does not need to provide an asset to put up as collateral in order to secure the loan. Instead, the loan is given out either based on credit rating and general financial situation, or it comes with a high interest rate. Typically, it is easy to get and processed quickly, which makes it a good option for people who need money as quickly as possible, but do not require a very large amount.
How Do Quick Cash Loans Work?
Now that you know what they are, you might be wondering "But how do cash loans work?" Quick cash loans like this are not all that different from other forms of lending. In fact, the process is very similar. In order to get one, you have to apply just like you would for any other kind of loan. You can do that online, on the phone, or in person, with lenders you can find on the high-street. The easiest and most convenient method, by far, is to apply online. You can apply from anywhere, and all you have to do is fill out the application form. Once you are approved, you will receive your cash for the agreed upon term and will then start paying it back in instalments according to your contract.
Who Can Get One?
Most people are probably able to get an online payday loan like this, because the requirements are not very stringent. You just have to be a resident of the UK, of age (over 18 years old), but you know what you might not need, depending on the lending company you choose? A bank account, because this is a cash loan. That means that you receive it in person and can start spending it right away! That cuts down on the processing time and information you don't want others to know.
How Much Can You Get?
One thing you need to know is that you won't be able to get a lot with this sort of cash advance. Because is a small, quick cash loan that people typically get as a last-minute emergency solution, the requirements are not strict, but that means the amounts are not high, either. You can expect to get anywhere between £100 and £5000, but the majority of companies only offer loans up to £1000 or £2000. That should be enough for covering any unforeseen expenses you may have. If you are having trouble with everyday expenses or need larger sums of money, then it is best to look for a different kind of loan.
What Are The Repayment Terms Like?
As far as repayment goes, the period will vary depending on the amount you are borrowing, as with any other kind of loan. Based on that, you have from days to months to repay the total loan. Smaller amounts may require you to make the full repayment within just one month, like a traditional payday loan, while larger sums can offer more flexibility and allow you to repay for months, or even years. If you manage to borrow £5000, for example, you will be able to make repayments for up to 36 months.
How Much Do You Repay?
Of course, the amount you repay will be higher than the one you borrowed to begin with, because of the interest rate attached. Lending companies make profit from the interest fees they charge borrowers; the longer you take to repay a loan, the more you will be charged in interest. While interest rates can vary depending on the company, your general financial situation, or your credit rating, you can expect them to be exceptionally high. Especially if you're looking at borrowing money for a year or longer, you will have a APR of over 1000%, with many being around 1200% APR, or going as high as 1600% APR.
Where Can I Get A Cash Loan?
Luckily, a cash loan is not at all hard to find - you just have to go online and search for cash loans, small loans, payday loans, instant loans, same day loans, quick loans, or any other version of a small, unsecured loan like this. Alternatively, you can also go to a lending company's office, if you prefer to talk to someone in person.
However you choose to apply for this loan, make sure to do a quick background check on the company and make sure they are registered and legally allowed to operate.
Can You Get A Cash Loan With Bad Credit?
While yes, bad credit can certainly affect the way you borrow money, there are instant cash loans with no credit check that you can benefit from. That means that your poor financial history will not factor into the decision-making process when the lending company is assessing your application for a loan. Of course, not all companies will offer the same kind of service, but even so, poor credit does not mean you cannot get a cash advance.
Bad credit is not ideal, that's true; and it might limit your borrowing ability. Banks will be much less likely to give you a line of credit, and some other institutions may refuse you as well. However, there are options that are specifically offered to individuals with less than stellar credit, and while it may mean that you will get less money, that your interest rate will be higher, or that you will be required to repay the loan faster, it does not mean you cannot benefit from a loan.
How Can You Use A Cash Loan?
Quick payday loans in cash can be used in a variety of ways and for many reasons, but they are typically used as a solution to financial emergencies. Because of the amount and repayment terms, there are limitations to what you can do and what you can spend this money on. Ultimately, it is up to you when you choose to get a cash loan and for what, but here are some of the most common ways that people use a cash advance.
It's no secret that car maintenance can be extremely expensive, and if your vehicle breaks down or needs a repair suddenly, you may find yourself stranded. Car repairs are not cheap, and if you don't have savings you can tap into, you may be taking the bus to work or carpooling for a long time. But not if you can get a payday loan in order do cover your repair. You can get the money in a couple of business days and pay to have your car fixed as soon as possible. This way, you avoid the massive hassle and the inconvenience of finding alternative transportation.
House appliance repairs
There are things we can live without, and if the toaster or dishwasher break down, we can make do. But if a pipe bursts, your refrigerator stops working, or your washer and dryer break, then you have a bigger problem that needs to be solved. And because having the appliance break down is not enough, it usually also costs you an arm and a leg to repair. Few people can foresee this problem and have money stashed away to take care of it, so getting instant cash loans is the most convenient approach. Get a cash advance quickly and life can return to normal.
Anyone who's ever had a tooth ache knows that you can ignore it for a while, but there comes a time when you have to bite the bullet and go in to have a dentist take care of it. The problem is that dental work is notoriously expensive, and especially if you have a more complex issue, like a wisdom tooth extraction. I think you'd agree that this qualifies as somewhat of an emergency, so a quick cash loan is exactly what you need to cover this necessary, but unforeseen expense. Then you can focus on repaying without the searing pain.
What Are The Advantages Of A Cash Loan?
Ok, so you know everything about cash loans - but let's take a closer look at the many benefits of of this sort of installment loan. Why should you consider getting one, and is this a better option than other similar ones?
You get the money quickly
One of the main benefits with this sort of lending is that you don't have to wait around forever for your loan to be approved. First of all, the approval rate is pretty high, and second of all, you are almost instantly notified if you are getting the loan. That cuts back on the stress and time you waste waiting to be receive confirmation from banks and other financial institutions. After that, it's smooth sailing : you get the money in 1 to 2 business days and can go ahead and pay off whatever you owe. No need to be late when your loan is on time!
You can use the money for whatever you want
Unlike a personal loan from a bank, for example, you do not need to give explanations to anyone on what you're doing with your money and you can use it for whatever you want. Whether you have an urgent expense that needs to be covered or you just wanted to go away on vacation, it doesn't matter - the money is yours to spend however you see fit. Especially if you're getting a cash loan, you can literally step out and start spending your money, no questions asked.
You can get them with a poor credit rating
Bad credit doesn't mean anything if it's not even taken into consideration, right? Cash loans for bad credit are an excellent option for the people who have not had the easiest time with their financial history and don't have a great score to show for it. This enables people to borrow money and get the help they need regardless of the bad decisions they've made in the past or the way they mismanaged their finances. Everyone deserves a chance to mend their situation, so you should take advantage of it since you have the opportunity.
What Are The Disadvantages Of A Cash Loan?
But just like benefits, every loan option also has some drawbacks to consider. What do you need to keep in mind, when it comes to this kind of payday loan? Any hidden flaws you need to know about? Secret disadvantages that might make you change your mind? Let's see what this is about.
They charge a very high interest rate
Let's talk about the elephant in the room - the interest rate is, indeed, absolutely massive. But then again, they all are. You will be hard-pressed to find a payday loan option that doesn't charge you high interest rates. But still, with an APR of over 1000%, that's a big chunk of money to overpay, especially if you're looking into getting a loan over a longer period. You need to figure out if you are willing to pay much more than you borrowed for the convenience of being able to repay in instalments.
You risk falling prey to loan sharks
There are more scammers out there than you think and if you're not careful, you may end up being their victim. Too many people have ended up tied into phony contracts because they didn't pay enough attention, so you should do your due diligence and take steps to not take their place. You can start by carefully assessing the establishment and checking if they are registered. But it's not over yet - read the contract thoroughly and check for hidden clauses and secret fees; that's how they get you.
You don't have access to a large amount of money
Since this is a loan for a relatively short term, and perhaps without a credit check, the amount you will be able to receive will not be massive. Perhaps this is not an issue at all, if you are only planning on borrowing a couple hundred quid, but if you need to cover a major payment, then this might interfere with your plans and ability to carry them out successfully. As mentioned earlier, a maximum loan of around £1000 is fairly common, so if your expense is lower than that amount, you won't have a problem, but if you're looking at spending much more, you might want to find a different option.
What Are The Alternatives To Cash Loans?
What if cash loans are not the best solution for you, after all? Are there any better alternatives out there for you?
- Doorstep loans
- Credit cards
- Payday loans
- Same day loans
Remember to browse through multiple options before committing to a single one; you may discover one that is perfect for what you needed.
What If You Are Struggling With Debt?
If you are currently struggling with debt, or if you ever do, in the future, remember not to panic and not be embarrassed of your situation. Chances are that a lot of people you know are going through the exact same thing you are, even if you are not aware of it. The bad news is that debt levels are rising, but the good news is that more people are asking for debt advice - 1 person every 48 seconds in the the first six months of 2017, according to Step Change. The thing to remember is that being in debt is not a permanent situation, but only a temporary state that can be improved and fixed, as long as you are serious, committed, and diligent about it.
Try to implement a budgeting solution
Before moving on to more serious measures, you may want to try simple budgeting. This can be done the old-fashioned way, with pen and paper, or putting cash aside for every expense category, or you can make use of smart technology and especially designed budgeting tools. Something as simple as a boring spreadsheet can help you keep a close eye on your spending and figure out where you can cut back or re-prioritise your spending, or you can use an app that tracks your expenses. That way, you have a clear view of every single penny you spend and where it's going, so you can be appropriately horrified and take action.
Seek debt advice from experts
There is no shame in seeking help - in fact, it's the smartest thing you can do, once you figure out that you're in over your head. There are plenty of dedicated charities who will be happy to offer free debt advice, so don't be shy about going to them with your problems. Be honest about your financial situation, your spending habits, and your debt; they can only help you if they have the whole picture. Look for advice online, or go and speak to someone in person in one of their offices on the high street.
Take out a debt consolidation loan
Last, but not least, the solution to your debt woes might be...getting another loan. Rather than add to your debt insanity, this loan can be your saving grace. Debt stress does not only come from not being able to afford all of your repayments, but also from the sheer effort it takes to manage all of your different loans and repayments. It is mentally draining and time-consuming, so if you can get rid of all that, why wouldn't you? A debt consolidation loan allows you to pay off all your previous debt and switch to repaying just one loan, in one place, with only one regular instalment. If you're lucky, this can even help you reduce the amount of debt you owe, from the get-go.
Are Cash Loans Right For You?
Now that you've read everything about them, you might be wondering whether cash loans are the right choice for you. Are you sure this is the best option? Would an alternative work better? Let's look at the two scenarios - when should you get a cash loan? And when shouldn't you get one?
|· You have a one-time urgent expense||· You have trouble managing your everyday expenses|
|· You need less than £2000||· You need more than £2000|
|· You can afford to repay the loan instalments||· You cannot afford to repay the loan instalments|
|· You have good debt management skills or a history of good debt management||· You have poor debt management skills or a history of poor debt management|
In conclusion, cash loans can be a very good option for people who find themselves in a tricky situation or a financial emergency. Whether it's an urgent repair you need to make or a medical issue that needs to be taken care of, it's good to know there is a financing solution you can rely on when money is short and so is time.