Everyone has been, at some point, in a situation where they were in need of quick loans. A financial emergency can throw you for a loop and leave you scrambling to find money to cover it, which can be difficult to do on a short deadline.
Most people will turn to a fast financing solution such as quick loans, but before you get one, it’s best to find out everything you can about it. Answers to questions like “What are quick loans?” and “Can I get a quick loan with bad credit?” are essential for your financial knowledge and good decision-making.
What Are Quick Loans?
You may have also encountered quick loans with the name of same day loans or payday loans; they are unsecured loans that, as the name suggests, can be offered rather quickly, especially compared to a traditional loan, or a secured one.
What Is the Process Like for Quick Loans?
In order to get quick loans, you need to apply for them just like you would for any other loan. Typically, there is an online application you can fill in and which will get assessed immediately; sometimes it takes as little as 60 seconds to make a decision.
Alternatively, you can go in and make an application in person, on the high street. You should also know that there are options that charge you no application fees, so you don’t have to worry about spending more money trying to borrow money.
How Long Does it Take to Get Quick Loans?
As I mentioned, the actual decision is instant, most of the time, and you are very likely to get the money on the same day. Depending on the lending company, you may be able to get cash, or you can receive a transfer. Cash will, of course, be the faster option, because you receive it instantly and you do not need to wait for the transfer to be made.
How Much Can You Get with Quick Loans?
Like with any other loan, the amount you can get depends on the lending company and your personal financial situation. Generally speaking, you can get a loan between £100 and £5000 for a period of 3 to 36 months. How much you are eligible for will depend on how much security you can provide for the lender.
Where Can You Get Quick Loans?
There are plenty of options for unsecured quick loans online, and on the high street, it is just a matter of picking the right lending company for you. Keep in mind that while similar, they will all offer different terms and conditions, so you need to make sure you survey them carefully before committing to one company and signing any legal documents.
You can make sure your lending company is authorised by checking the Financial Conduct Authority (FCA). This way, you make sure that everything is legal, and you are protected.
What If You Have Bad Credit?
When you have bad credit, that is often a limiting aspect regarding financing options. However, you will be happy to hear that you can get quick loans for bad credit or quick loans for unemployed individuals, if you’re in a rough spot.
You do have to be aware, however, that with bad credit or unemployment, the terms of the loan may be different, affecting the loan period and amount, as well as the interest rate.
How High Is the Interest Rate?
Typically, the interest rate on quick loans is quite high. Because of the speed and convenience of the service, as well as its unsecured nature, the lending company must protect itself in case of non-payment, meaning that you will end up paying more than you borrowed, to the tune of around 90% APR.
You’ve got to decide if that is something you can afford and if a loan like this is worth the repayment, or if you’re better off finding a different financing solution, like borrowing from family and friends.
How do You Repay Quick Loans?
Repayment terms differ depending on the lending company you are borrowing from, as well as the sum you are planning to borrow. If you get a smaller sum from a payday lender, then you will be required to return the amount about a month later, in full, including interest.
If, however, you strike a different deal with the lender, perhaps on a bigger loan, you will be able to repay what you borrowed in instalments, over a slightly longer period. Keep in mind that the longer the repayment period is, the higher the amount you pay in interest will be.
Are Quick Loans a Good Idea?
Only you can determine whether or not quick loans are a good idea, depending on your specific financial situation and what your needs are. If you’re in an otherwise good financial situation and just strapped for cash at this moment, then you're secure enough that you may be able to afford quick loans.
If, however, you are at risk of paying off the loan and then needing another loan to support yourself, you may be better off with a different, long-term financing solution. Quick loans are by no means a permanent solution, but just a quick fix that can come in handy.
In conclusion, quick loans can be an excellent financing solution if you find yourself in a situation where you need an urgent source of money and other options are not available or simply not suitable. However, before you opt for quick loans, you need to be aware of the circumstances surrounding such a financing option.
Inform yourself regarding the terms of the loan, how much you can get, how you can repay it, etc. as well as the proper way to check the authorisation of potential lenders in order to prevent or minimise any issues that may arise as a result.