What is a cash loan?
A cash loan is an amount of money provided by a lender once a borrower has undergone a successful creditworthiness assessment.
Contrary to their name, cash loans are typically not paid out in the form of physical money. Instead, the funds are usually sent to your bank account.
Can I get a cash loan today?
If a lender approves your application for a cash loan, your money could be sent today, although you should bear in mind that payout timescales vary between lenders, and the time it takes for the money to become available in your bank account will depend on your bank’s policies and procedures.
What can I use a cash loan for?
People typically apply to borrow a cash loan to fund an unexpected expense which they have been unable to cover with savings. These expenses are typically urgent, meaning the borrower can’t wait to save up the money.
This could include car repairs, unplanned bills, or a replacement of an essential household item, such as a washing machine or fridge.
Before you apply for a cash loan
A cash loan should only be applied for after careful consideration.
When you take out a loan, you don’t just repay the money you’ve borrowed – you’ll be charged interest, which will be added to your monthly repayments.
The most important thing is to ensure that you’re able to afford your monthly repayments without the cost affecting your ability to cover your essential outgoings.
Taking out a loan that you can’t afford could lead to serious money problems. Defaulting on a repayment could result in you being charged additional fees, and your credit score will decline.
Apply for a cash loan with a direct lender
When you apply for a cash loan with a direct lender, they will carry out a creditworthiness assessment. This will include a hard search or Open Banking.
If you’re turned down by one direct lender and make one or more further direct lender applications elsewhere, multiple hard searches could be carried out, and this will damage your credit score. It’s also worth noting that a hard search will remain on your credit file for up to 12 months.
Search for a cash loan with a credit broker
A credit broker, like CashLady, could help to protect your credit score from multiple hard searches, as well as saving you valuable time.
We can scan our panel of over 30 lenders for a suitable loan for you, based on the information provided on your application form. We do this using soft search technology, which will not harm your credit score in any way.
If you’re matched with a loan and choose to make an application directly with the lender, a creditworthiness assessment will be carried out.
Can I apply for a cash loan?
Eligibility criteria will vary between lenders, but you can usually apply for a cash loan if you:
- Are over the age of 18;
- Are a UK resident;
- Have a UK bank account and valid debit card; and
- Have a regular source of income paid into your bank account.
You can search for a loan with CashLady if you meet the above criteria.
Can I get a cash loan with bad credit?
If you have a history of bad credit, you might find that your borrowing options are limited, although it’s worth noting that getting approved is not impossible.
CashLady works with several lenders who specialise in cash loans for people with bad credit, and they could be willing to consider your application.
Many bad credit loan providers use a safe and secure procedure called Open Banking during their creditworthiness assessment. With your consent, Open Banking enables your chosen lender to access your online bank account with a read-only view. This provides them with an insight into your recent financial activity, offering a more up-to-date overview of your financial habits, rather than relying on your credit history alone.
If you are accepted for a cash loan with bad credit, you might find that you’re offered a higher rate of interest.
How much will a cash loan cost?
The cost of a cash loan will vary from person to person, and will depend on the following:
- How much money you apply to borrow.
- How long you borrow it for.
- The interest rate you’re offered.
- Whether there are any standard fees associated with the loan.
When searching for a loan, you may notice the term ‘Annual Percentage Rate’ (APR). The APR is the yearly cost of the loan, and factors in both interest and standard fees.
The lower the APR, the lower the cost of borrowing.
How fast can I get a cash loan?
People searching online for ‘instant cash loans’ or ‘loans today’ are normally in a position where they need money urgently. This is usually a result of a financial emergency, such as a car that’s failed its MOT, or a boiler that has decided to break on the coldest day of the year.
These situations are hugely stressful, but it’s very important to take a step back and really think about whether a loan is a suitable option for you.
If you decide that a loan could be a solution, you should bear in mind that although the application process for an online cash loan might be straightforward, it’s not possible to fast-track the procedure.
It could be possible to get a same-day cash loan, although this will depend on the day and time that you apply, the lender you apply with, the speed at which you provide any required documentation, and your bank’s policies and procedures.
The CashLady process in numbers
- £0: we don’t charge any fees for our service.
- 30+: the number of FCA authorised and regulated lenders on our panel.
- £100 - £10,000: with CashLady, you can search for a loan between these amounts.
- 3 – 60 months: the lenders on our panel offer a range of repayment terms, depending on the amount of money you apply to borrow.
- 5 minutes: the time it takes to fill out our online form.
- 60 seconds: this is how quickly we’re able to reveal whether we’ve found you a suitable loan.
- 24 hours: if approved for a loan by one of our lenders, your money could be sent the same day.*
Reasons to choose CashLady to help you search for a cash loan
1. CashLady have access to a panel of over 30 direct lenders, all of whom are authorised and regulated by the FCA.
2. We’re proud of the service we provide to our amazing customers. Our friendly Customer Care team are on hand to help from Monday to Friday, between 9am and 5pm.
3. Your no-obligation quote will be based on your individual circumstances.
4. You can use CashLady to search for a loan 24 hours a day, 7 days a week, whether you’re a night owl or an early bird.
5. Any credit score welcome to apply.
I’ve taken out a cash loan and I can no longer afford the repayments; what are my options?
In this instance, you should get in touch with your lender. Try not to wait until you’ve made a late repayment or missed one altogether – the sooner you explain the situation to your lender, the sooner they can help you put a plan in place going forwards. They may be able to suggest a solution to help reduce some of the pressure. Every lender is different, but this could include a repayment holiday, or a temporary reduction in your repayments.
I’m worried about my finances; what can I do?
If you’re struggling with money or debt, the following charities and organisations can offer free, confidential support: StepChange, MoneyHelper, Citizens Advice, and National Debtline.
Financial management tips
- Set a monthly budget. This might sound like a tedious task, but it could be a really useful activity to help you stay on top of your finances month to month, especially when repaying a loan. If you’re not sure where to start, you can use the free MoneyHelper budget planner tool.
- Scrutinise your spending habits. When looking at your monthly outgoings as part of your budget planning, try to really pay attention to what you’re spending your money on. Are there any areas that you can cut back on? For example, are you still making use of that gym membership or streaming service?
- Save money, if you’re able to. Saving money doesn’t need to drain your income or prevent you from doing the things you enjoy. You don’t need to put hundreds of pounds away each month if you can’t afford to; even the smallest amounts can soon add up. If you find that you’re left with some disposable income after making your monthly payments, you might consider putting some into a savings account. This money could be put towards something like a holiday or your retirement, or it could be a financial back up in the event of a future emergency.
*Payout timeframes vary between lenders, and the time it takes for the money to appear in your account will depend on your bank’s policies and procedures.