Here's The Answers All of Your Questions
Cash Loans Explained What is a Cash Loan?
Cash loans; could they save your day? If you have found yourself in a bit of a financial emergency and don't know what to do next, then yes, a loan can help. In our lives, there will be times when expenses will unexpectedly crop up and may surprise you – and if you don't have the funds, what can you do? Carrying on reading to see if a cash loan is for you.
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 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 apply and get processed quickly, which makes it a good option for people who need money as soon as possible, but do not require a large sum of over £5,000.
Who Can Get One?
Most people can get an online payday loan like this because the requirements are quite easy to qualify for. To get a loan in the UK, most lenders will require that you must be a resident of the UK, aged 18 years old or older, however, depending on the lending company you choose, you may not require a bank account for this form of credit because this is a loan that you will receive in cash. This means that you receive your loan in person and can start spending it right away. That cuts down on the processing time it can take when you get money transferred to your bank account.
Loan calculators are a helpful means of determining what loan terms would be suitable for you, the one offered by the Money Advice Service, is simple, reliable and free to use.
How Much Can You Borrow?
Typically, the amounts that are borrowed tend to be on the smaller side, as most customers get this type of loan as a last-minute emergency solution. You can expect to get anything between £300 and £5000, which should be more than enough to help you cover the costs of any short-term problems that you may be having. However, if you do wish to borrow a more considerable sum of money, it may be worth looking into a long-term form of credit which will probably be better suited to your needs.
Where Can You Get a Cash Loan from?
These loans are a readily available form of credit – so all you have to go online and search for a cash loan, small loan, payday loan, instant loan, no credit check loan, same day loan, quick loan, or any other 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.
You can use websites such as Trustpilot to look at the general consensus of how the company operates. Typically, you can allow for one or two bad reviews, even for good companies. What you want to look out for is how they communicate with unhappy customers. Do they seek to resolve any disputes? Alternatively, do they ignore or blame the customer? Steer clear of companies who don't attempt to review any issues.
However, if you choose to apply for this loan, make sure to do a quick background check on the company and make sure they are registered, reputable and legally allowed to operate. As well as this, you will want to check that the FCA regulates them, you can tell whether the FCA governs a company as they will display the FCA's logo on their website or they will be on the FCA register.
The Function of a Cash Loan How Do Cash Loans Work?
Now we've dealt with the basics, the next question you might be wondering is 'How do these loans work?', So let's move on to talking about everything you want and need to know about how this type of loan operates. In this section, we will discuss topics such as bad credit, repayment terms and how much you can expect to pay in total.
How Do They Work?
Quick cash loans like this are not all that different from other forms of lending. In fact, the process is very similar. To get one, you have to apply just like you would for any other kind of loan. You can do that online, or in person, with lenders, you can find on the high-street. However, the most accessible 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 according to your repayment schedule. Read More »
What are the repayment terms like?
As far as repayment goes, the period will vary depending on the amount you are borrowing, just as it would 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 more considerable sums can offer more flexibility and allow you to repay for months, or even years. If you manage to borrow £5,000, for example, you will be able to make repayments for up to 24 months.
How much do you repay in total?
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 a profit from the interest fees they charge borrowers; the longer you take to repay a loan, the more you will be charged in interest.
Don't make multiple applications to different lenders at the same time. Lenders will check your credit report and many applications at the same time will ensure that the lender could be wary of lending you the money. Instead, do your research and apply to one to two lenders whom you believe offer both great deals and are likely to accept you.
The Uses When Would a Cash Loan Come in Handy?
These types of loans can be used in a variety of ways and for many reasons, but typically they're used as a solution to short-term financial emergencies. Due to the amount and repayment terms, there are limitations to what you can do and what you can spend this money on. It's up to you how you use your loan, but here are the most common ways that people use their cash advances.
How Quickly Can I get a Cash Loan?
Fortunately, one of the most significant advantages is the fact that you can get one fairly quickly, which makes it an excellent financing solution for when you're in a hurry or find yourself in an emergency. Traditional loans can take forever to process, but an instant cash loan is, as the name says pretty much instant. Here is what you can expect regarding timeline, from a cash loan application Read More »
- Applying - The fastest and easiest way to apply is to do it online because all you have to do is fill out a quick form. Otherwise, alternatively, you can apply in person, on the high-street. In the initial stage, you just need to provide some preliminary information so that they can do a pre-approval assessment.
- Pre-approval - They should be able to let you know if you are eligible instantly, or within a matter of minutes. The full assessment of the application will also only take minutes but can vary depending on the time of day you apply.
- Approval and finalising the application - Once you provide all the necessary information and documentation requested, you can be fully approved and, on your way to getting a loan.
- Receiving the money - Some companies say they will send you the money within 10 minutes, but when you receive, it depends on whether you apply in person and can walk out with the cash, or if you need to wait for bank processing. « Show Less
Always shop around when looking for your ideal loan, you don't want to miss out on any great deals that could be available to you.
Top reasons for getting a Cash Loan
A loan can be a beneficial financing tool to use, so there are numerous reasons why you would want to get one. Different people will have different needs and desires, but they can all benefit from getting one, in one way or another. Let's look at some of the most common reasons why people seek these loans. Read More »
Unfortunately, financial crises happen to all of us, and they can rarely be avoided or prevented. You have to find a quick way to deal with them effectively. Whether you need to make an emergency trip, cover an expensive car repair, or an extensive urgent home renovation, a cash loan can give you access to the money you need quickly and with minimal fuss or paperwork. You just have to look for instant cash loans, and you can leave with your money on the same day you apply.
With the cost of living continually rising and wages decreasing, more and more people find that they can no longer afford to make ends meet month to month. Understandably, that creates a feeling of lack of security and building apprehensiveness, as people strive to find a solution to their financial difficulties. These loans can solve a lot of these issues, at least temporarily, while you search for a more permanent fix. It can take the pressure off you immediately and give you some time to breathe without the stress of worrying about how you'll cover the costs of everyday living.
It's no secret that car maintenance can be costly, 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 to cover the costs of 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 breaks down, we can make do. However, if a pipe bursts, your refrigerator stops working, or your washer and dryer break, then you have a more significant problem that needs to be solved. Moreover, because having the appliance break down is not enough, it usually can be pretty pricey to repair. Few people can foresee this problem and have money stashed away to take care of it, so getting a loan is the most convenient approach.
Medical and dental bills can be notoriously expensive. Although in the UK we lucky enough to have the NHS who help cover a significant portion of the costs, if you have a more complicated issue, it can be an entirely different story. So, if you find yourself in a situation that requires pricey emergency work or surgery, look into a loan to help you get the help you need. « Show Less
Our Essential Tips for How to Avoid the Pitfalls
If you've never taken out a loan, you may be interested in finding out more about them and whether or not they're suitable for you. This can be an excellent financing option if your situation warrants it, but there are also some potential pitfalls that you need to be aware of before committing to a loan like this. Take a look at this section to learn how to avoid them.
Things to look out for
While these loans can be fantastic, helpful ways to manage your finances, or even your debt, unfortunately, getting a loan won't help everyone and their circumstances, so if your situation is not just right, you may not be the best candidate for getting a loan. Here are some of the things that you need to look out for when you take out credit. Read More »
You may enter a vicious circle
If you're not prepared for any form of loan, then one of the most common and challenging problems you could face is that you could enter into a gateway to a vicious financial circle. You see because the interest can tend to be on the higher side for this form of credit, and the repayment period can be relatively short, by the time you pay off the first loan, you may end up needing another one immediately after. Alternatively, even worse, you may need to take out a different form of credit to pay for the first one.
You may end up paying more in interest than you originally borrowed
It's a well-known fact that the interest rate on unsecured loans can be high, but when you make that an instant loan in cash, perhaps offered even with bad credit, that rate can be sky high. Depending on how large your loan is and how long you take to repay it, you may even end up paying more in interest charges than you got with the loan.
The money may not be enough
If you're looking to borrow a large sum of money, then you may wish to reconsider this type of loan. Cash loans will allow you to borrow around within the vicinity of £300 to £5,000, which should be more than enough to pay for any unexpected bills or emergencies. However, if you wish to borrow more, then this option probably isn't suitable enough for your needs.
How to avoid the potential pitfalls
If you think that this is the method of borrowing for you, it's important to know how to avoid these potential pitfalls before applying for one. In this section you'll find out how to prevent these dangers and how to make the most of your loan, so carry on reading to learn how to do just that.
Ask for other's opinions
If in doubt, it's always a good idea to get an impartial third party to weigh in on your situation and give you some well-needed advice. If You feel that you need the extra funds, but others think the opposite, then you could get some suggestions on ways that you can afford your desired purchase or bill without the need for a loan.
Save, save, save
If you're getting a loan to cover additional debts, this is likely going to worsen your financial situation in the long run rather than saving it. Instead, try learning to save a little each month and cut back on spending will help you to raise funds, therefore with time, you won't need a cash loan at all. Although understandably, this can be of little help if you have an urgent bill you need to pay.
Only borrow what you can afford to repay
This rule applies to all methods of borrowing. In order to maintain good financial health, it's crucial that you only borrow what you can afford to repay with interest on top.
Cash loans usually have a fixed repayment period, whereby you make regular monthly payments until your debt is cleared. That’s why it's vital that before you make any loan applications, you should calculate realistically whether you will be able to keep up with these monthly repayments as well as your other essential bills and living expenses, to determine whether you can afford to take out a loan. Moreover, if it looks like your loan repayments are going to eat into your monthly budget, it may be worth exploring cheaper methods of borrowing.
Protect your credit score
Making multiple credit applications within a short period can severely impact your credit score. Therefore, if you're looking for your ideal loan, it's best only to wait at least a month or two before applications.
This will help you to avoid having a negative impact on your credit score from multiple applications and will instead give you a better chance of being accepted for credit in the future.
Pay off debts with savings
It's always best to pay off your debts with savings rather than taking out another loan. This is because you'll have to pay interest on multiple debts and you could end up in a difficult financial situation in the long run. Instead, try budgeting and cutting down spending to reduce your current debts before you consider taking applying for additional funds. « Show Less
How to keep track of your loans
One issue that few people talk about is the difficulty borrowers often experience with managing their debt, and multiple loans, in general. When you have more than one payment to make, with different interest rates, and on different dates, it can be confusing and time-consuming to keep track of all of them. That's why debt tracking tools have been created, to help you manage your debt and payments more effortlessly and efficiently.
When it comes to any form of borrowing, always consider any alternatives if you have any doubts about a particular form of credit.
The method that comes in handy, and maybe naturally, to someone people, is to keep track of what you owe and how much you've paid with the help of an Excel spreadsheet you create manually. You input the numbers (going in, going out, balance, etc.) and it can do the math for you automatically. This can be one of the simplest and easiest ways to take a good look into your financial situation, incomings and outgoings. Read More »
One step forward is to use a particular website that's dedicated to these kinds of things. A site like this can allow you to link all of your types of debt (student loans, secure and unsecured loans) so that you can have a streamlined overview of everything you owe, even if they're in different places.
National Debtline is an online debt charity that can help you budget and offer you advice, should you find yourself struggling with debt.
Finance tracking apps
Finally, the most convenient way is to make use of a finance tracking app on your smartphone. The app does all the work for you and can clearly illustrate all aspects of your financial situation, including debt and repayments. The significant advantage with this is that the technology is always at your fingertips, just in case you ever want to check something quickly or on the go. « Show Less
Multi Month Loans' Top tips for a positive experience
For a seamless experience with borrowing and repaying the money with a cash loan, here are a few important tips that we recommend you do: Read More »
- Only get a loan if you can afford the repayment instalments
- Check the interest rate and make sure you're comfortable with paying that amount
- Only borrow as much as you need, and not more
- Make sure you have a suitable method of debt management
- Check that you can cover your needs with just one loan
As you can see, there are multiple things to be careful about when it comes to borrowing money. However, you can circumvent all of these problems by putting some smart tips into practice and taking the time to look into both the pros and cons to determine whether or not this form of crredit is the best option for you. « Show Less
Check that a company is legitimate and registered before you agree to anything. You can use the government's website here, to check if the company is genuine.
The Pros and Cons The Advantages and Disadvantages of Cash Loans
Cash loans are one of the easiest and convenient forms of finance, which is why they have grown so popular in recent years. However, due to their flexibility, you can use the funds you get for anything you may need them to cover. Despite their many benefits, there is a downside associated with them. To help you make that decision here are both the pros and cons of these loans.
The advantages of Cash loans
For those wondering 'when would a loan come in handy?' below we divulge some of the advantages that could benefit you if you opt for this financial solution. Read More »
If you're hit with an unexpected bill, or you need cash fast, a these loans could be the solution you need to get you through short-term financial struggles. This is one of the main benefits of these types of loans.
There is a multitude of lenders on the market, and the majority will send the funds to your bank account within hours or minutes of your application being accepted. This is usually significantly faster than making a loan application with a high-street bank, where you may have to wait a few days or weeks to receive the money you want to borrow.
Another advantage of these loans is that they're convenient. These days you can apply online without having to visit your local bank, and you can make an application at any time of the day or night. This is a more convenient option as you can apply whenever you want within the comfort of your own home, or wherever you have internet access.
If you're going through financial difficulties, you may not want to worry your family and friends until you're back on your feet. Alternatively, you may prefer to keep financial matters private, and with a cash loan, you can do just that. With these loans you can apply for funds privately within the comfort of your own home, so that no one else needs to get involved.
You get the money quickly
One of the main benefits of 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 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 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. Cash loans for bad credit are an excellent option for the people who have not had the most comfortable time with their financial history and don't have a high 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. « Show Less
Cash loans are not without their risks and pitfalls, as is typical with most forms of lending. Below, we've listed some of the primary disadvantages that are associated with this method of borrowing. Read More »
Deception by lenders
Some lenders may seem like they're transparent with their costs, and they may even make it look as if it's not that expensive to borrow from them. However, in reality, more deceptive cash loan lenders use these tactics to lull customers into a false sense of security and cause people to enter complex and binding financial contracts. To avoid getting taken in by these types of lenders, ensure that you do your research on the company before you agree to anything.
Easier to build up high levels of debt
It's important to remember that if you believe that there's any chance that you won't be able to keep up with your payments you could leave yourself in a challenging situation in the long-run.
They charge a very high-interest rate
Unfortunately, these loans are notorious for their high-interest rates and can often reach at least 300% depending on the lender. It's because of these costs that makes it so easy to fall into a cash or payday loan trap. This occurs when borrowers continually can't keep up with repayments, they then extend their loan repayment date and build up high levels of interest. You need to figure out if you are willing to pay more than you borrowed for the convenience of receiving a loan.
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. Maybe this is not an issue at all if you are only planning on borrowing a couple of hundred quid, but if you need to cover a significant payment, then this might interfere with your plans and ability to carry them out successfully. As mentioned earlier, a maximum loan of around £5000 is relatively conventional, 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.
Would an alternative be better?
Deciding on whether or not to apply for a loan will largely depend on your situation. It's important to calculate whether you'd be able to keep up your current lifestyle while paying loan repayments and interest. This will give you a better idea as to whether you can afford this method of borrowing.
Alternatives such as credit cards, long-term loans and secured loans are usually cheaper than cash loans. However, these are generally harder to obtain, and you risk harming your credit score if your applications are denied. « Show Less
Before You Apply Are Cash Loans right for you?
Now that you've had the time and the resources to read everything about them, you might be wondering whether these loans are the right choice for you. Are you sure this is the best option for you? Alternatively, would you benefit from an alternative? Let's look at the two scenarios - when is the ideal time to get a cash loan? Moreover, when is it a bad idea to get one?
Is a cash loan for you?
This type of loan can be an excellent 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.
|- You have a one-time urgent expense||- You have trouble managing your everyday expenses|
|- You need less than £5000||- You need more than £5000|
|- 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|
Always know what you can afford to borrow and pay back with interest, never borrow more money than you can afford, and be aware of pushy lenders who may try to persuade you to acquire more.
What are the alternatives?
There are some alternative options for borrowing if you find that cash loans are not a suitable solution for you. Here are just a few of the main alternatives to cash loans. Read More »
Borrowing from friends and family
Due to their convenience, these loans often come with high-interest rates. If you're already in an awkward financial position and you can't keep up with your loan repayments, you could end up in a debt spiral which could significantly worsen your credit score and finances.
You may be reluctant to borrow from family and friends; however, this is always a better option than taking out a loan as it eliminates the risks associated with this type of loan, and you're likely to pay lower interest than you would if you were to take out credit with a bank.
Credit cards are also a viable option if you're looking for a short-term financial solution. Credit cards typically have lower interest rates than loans. Therefore you can benefit from lower monthly repayments. As well as this, many credit cards have interest-free periods of at least 57 days. Consequently, you can borrow money for free so long as you keep up with your repayments.
It's important to remember that credit cards can have hidden costs such as late payment fees and withdrawal fees, so to keep the costs down make sure you pay as much as you can each month.
As mentioned above, the majority of cash loans are unsecured. Therefore another option would be to apply for a secured loan.
Secured loans are secured against significant assets such as your car or your home. The asset is used as collateral, and if you can't keep up with your payments the asset will be sold to cover the amount owed.
This is seen as a risky option for borrowers as you risk losing essential possessions, however, as secured loans are less risky for lenders, interest rates tend to be lower than that of other loan types. « Show Less
When might it be good to avoid a cash loan?
You've heard about why you should get a loan, and all the benefits that this form of credit can reap, but when should you not get a cash loan? Are there any situations in which you should avoid them? Are there any situations that are entirely unsuitable to use this type of financing? Let's talk a bit about that now. Read More »
- Avoid a loan when you can't afford it - It should go without saying that no one should take out a loan that they cannot afford to repay. Not only will it mess up your credit rating, but it can also land you into serious financial trouble. Payday cash loans are known to come with a high-interest rate, so make sure you can pay it before committing to one.
- Avoid a loan when you need more money - Cash loans, for all of their advantages, do not offer fabulous amounts of money. They're good if you need £5000 that you can pay off relatively quickly, but if you're in need of more, then a secured loan that offers more money might be better suited to your needs.
- Avoid a loan when you're not in a hurry - One of the biggest benefits of an instant cash loan is that you can get it very quickly. However, you pay for the convenience of the high-interest rate. If you don't need the money urgently, it might make more financial sense to wait for a different kind of unsecured loan.
- Avoid a loan when your credit rating isn't good - cash loans come with a high-interest rate, but that rate will be even higher if you are trying to borrow with bad credit. If you are struggling with your credit rating, perhaps Equifax can help you learn more about it and how to increase it.
In conclusion, a these loans can come in handy in a variety of scenarios and numerous different ways, but only if it is the right financing option for you. « Show Less
What if you're 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 by your situation. The chances are that many people you know are going through the same thing you are, even if you are not aware of it. 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.
If you are struggling with debt and don't know what to do, we've compiled a few top tips that could help you on your way to a debt-free future, so carry on reading to find out how to get started on your debt free journey.
Try to implement a budgeting solution
Before moving on to more severe 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 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 to get 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 past 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. « Show Less
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Last Updated on the 25/10/2018