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If you’re in need of extra cash to cover an urgent emergency expense, then cash loans could help you out. Get the amount of money you need with cash loans. Read on to learn more about cash loans, and find out how to get one.
Cash Loans Explained
Cash loans are small, unsecured type of credit that you would borrow just enough to settle urgent payables and expenditures. Cash loans are often associated with payday loans, instalment loans, online loans, personal bank loans, and flexible loans.
Cash loans as unsecured loans means they’re not secured against any of your personal assets. Example of a secured loan are mortgage and car loans. With a mortgage, your house could be at risk if you can no longer make the repayments on it. Same goes with a car loan with the vehicle as the collateral.
Way back several years ago, it was common to get a cash loan on the high street, but today most borrowers are increasingly utilising the internet to find fast cash loans. You’ll find most cash loans available conveniently from online lenders. You can take out cash loans from these lenders anytime as quickly as you need them.
You just fill out an application form on the lender’s website and submit it as soon as you complete the details. Once approved for a cash loan, the funds are paid straight into your bank account. With same day cash loans, you will get your money within 24 hours.
Purpose for Cash Loans
Cash loans can be used for many urgent reasons, and should only be used for a financial emergency. This means cash loans are for short-term money problems only. You can apply for cash loans to help you with emergency home and car repairs, emergency dental work or medical bill, and other important necessities.
However, it is important that you never end up relying on cash loans in order make ends meet each month or use it for frivolous spending only. Cash loans are designed as short-term help for any financial emergency, when your monthly paycheck is not due until a couple of weeks or is not enough to cover an urgent expense, and you have exhausted all other cash borrowing alternatives.
Taking out Cash Loans
Cash loans work just like any other types of loan. If you’re applying for cash loans online, you would complete the application process within minutes, then the lender will assess you. Lenders typically perform a number of checks when assessing you for cash loans. This means they will see whether you’ll be able to pay the loan back on time. If approved, you would normally receive the money in your bank account within a few hours.
The repayment depends on the cash loan you apply for. Some cash loans have term loans for over three to six months or even a year. However, if you take out a payday cash loan, you would be required to repay the loan, plus the interest and fees as quickly as in two to four weeks. In most cases, you would be paying one lump sum at the end of the month. If you choose to take out an instalment cash loan, you can benefit from a number of staggered payments over a period of months.
Some cash loan lenders levy fees, usually if you miss or fail to make a payment, and some charge service fees. Check with your lender what kind of fees they charge. Take note that when paying back the loan, you will also have to pay back interest and any fees and charges.
Lenders may have different criteria when it comes to approving cash loans. However, the general requirements include the following:
- You must be at least 18 years old.
- A resident of the United Kingdom.
- Employed or having some form of income
- Earning at least £750 after tax.
Cash Loans for those with Bad Credit
Lenders work with credit reference agencies who will run checks to understand each applicant’s suitability to get a loan. Your credit score provides the lender a better indication of your previous forms of credit. But, if you have poor or bad credit, that does not necessarily mean your application will be rejected or be banned for getting one.
The FCA mandates all responsible and authorised cash loan lenders to carry out a credit check. However, there are lenders who take into account affordability checks too. If they can see that you are capable of paying your loan back on time, and you meet their eligibility requirements, then your application is more likely to be approved.
Cash Loans Regulations
The FCA has placed tighter regulations on cash loans especially on payday loan lenders. This is to ensure the loans they offer are far more secure and that lenders operate a safe way to borrow money. When you choose cash loans from authorised lenders, you will benefit from the FCA regulations. This means interest rates, fees, and other charges of the loan are capped.
Choose a responsible lender who implement FCA regulatory practices. Furthermore, be extra careful when applying for cash loans online, as there are many scams and fraud. Check out the lender’s website and read its terms and conditions, as well as its customer reviews.
Choose a lender who is transparent with the fees and loan features. Some lenders charge application fee, service fee, late payment fee, and default fee. So, make sure you are aware of all the charges involved. Some lenders also encourage early repayment. If you are able to pay back your cash loans early, please do so. However, while some lenders do not charge early settlement fee, some lenders charge a certain fee plus interest.
Most cash loans you’ll find online are approved or rejected quickly. This way, you can get the money you need quickly if approved or seek elsewhere if declined. Cash loans are for emergency and thus, they need a fast or instant feedback as possible. Choose a lender that offers fast and easy loan services. There should be no hassle or unnecessary paperwork for cash loans.
305.9% APR. £400 borrowed for 90 days.
Total amount repayable is £561.92 in 3 monthly instalments of £187.31.
Interest charged is £161.92, interest rate 161.9% (variable)
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Rates from 45.3% APR to 1575% APR – we provide a no obligation quote, your APR will be based on your personal circumstances