What are the alternatives to instant loans?

What are the alternatives to instant loans?
August 16, 2017 Stacey Corrin

instant loans alternatives

Instant loans are a convenient, useful form of short term credit for covering unexpected life events and financial emergencies. Yet the benefits of this type of credit are only enjoyed when they are used responsibly. As part of being a responsible borrower, it’s important to explore instant loans alternatives to ensure that your next financial step, is the right one.

Instant loans alternatives – Three key questions

Before learning about other forms of credit, you should first gain an understanding of your current financial situation. Begin this process with the following three key questions.

What is your level of income?

How much are your monthly outgoings?

What are you aiming to achieve with these funds?

With these questions answered, it’s time to gain an idea of how much an instant loan would cost you. Use our loan affordability calculator below to see what your monthly repayments may be, how much interest you’d pay and what the total cost would amount to.

*The calculator is for illustration purposes only and may not reflect the exact actual cost which depends on the lender.

Apply for an instant loan from £80 to £500 today

When are payday loans useful?

Instant Loans Alternatives

Overdraft

When used correctly an overdraft can offer an immediate cash resource. However, research shows that the majority of consumers use up to their overdraft each and every month – a practice accompanied with charges that soon add up.

instant loans alternatives

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Credit card

Credit cards offer the ability to withdraw cash advances either by ATM or across the branch counter. However, cash advances are subject to far higher charges than typical on-card purchases.

What’s more, if you’re amongst the explosion of consumers who’ve taken out credit en masse, it’s likely that you’re considering an instant loan due to the high approval rates, even for those with a less than perfect credit history. In which case the majority of credit cards won’t be suitable – and even if they were, you’d still need to wait up to ten days for your card and pin to arrive.

instant loans alternatives

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Emergency fund

The Money Advice Service advise that UK households should have at least three month’s salary in reserve in case of an emergency. For those who follow this advice, and are prepared for a rainy day or an unexpected financial event, their emergency fund can serve as a free alternative to an instant loan. Yet a study by Nationwide reports that the average family has just £30 per week disposable income – income which must cover outgoings ranging from hobbies to luxuries. Safe to say that a rainy day fund is unattainable for the vast majority.

Line of credit loan

A line of credit is a type of flexible loan that revolves – allowing you to use it as you wish and repay it each month. You should think of this form of credit as an overdraft, with the interest charged as soon as you use the credit facility.

Guarantor loan

A guarantor loan features many similarities to a traditional loan, such as APR interest, monthly repayments and a set term. However, there’s one key difference – the need for another individual to guarantee the repayments should you be unable to meet your obligations. This form of credit brings with it serious considerations and is an agreement that you shouldn’t enter into lightly.

Find out your loan options with CashLady – Apply Now

Instant loans are ideal for cash emergencies

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CashLady instant loans alternatives

CashLady partners may offer you an alternative to instant loans, such as a 1 – 6-month short term loan, a logbook loan, a line of credit or a guarantor loan. Here’s an overview of some of the options you may be offered.

1 – 6-month short term loan

LenderLoan AmountRepresentative APRTerm
SatsumaMin £1001575%Min 13 Weeks
Max: £1000Max: 52 Weeks

Click here to apply now with this loan partner

Vanquish Credit card

Interest Free PeriodCredit Limit
56 DaysMin: £150
Max: £1000

 

Representative Example: Given a credit limit of £500 and an interest rate on purchases of 39.94% p.a. variable, you will receive a 39.9% APR

Click here to apply now with this loan partner

Logbook loan

Loan AmountRepresentative APRTerm
Min: £500100%Min: 12 Months
Max: £25000Max: 4 Years

 

Click here to apply now with this loan partner

APPLY FOR AN INSTANT LOAN WITH CASHLADY £80 – £500

CashLady is a Financial Conduct Authority Regulated Credit Broker. We work with responsible lending partners who adhere to the rigorous rules as set out by the FCA. Together, we are committed to treating you fairly. Specifically, this means that:

  •    You’ll never pay upfront charges or broker fees
  •    Your personal data will always be protected (we’re members of the ICO)
  •    Your information will never be passed onto third parties for marketing
  •    You’ll only ever be presented with offers from reputable, licensed instant loan lenders

Alternative Credit Brokers to Cash Lady – Comparing Interest Rates

 

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