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Short-term lending is a borrowing solution suitable for employed individuals who need to borrow a small amount, quickly, to deal with a financial emergency, yet there are many quick loans benefits that can be often overlooked.
Quick loans are often used by those who have a poor credit history but need to borrow cash in an emergency. The application process is usually quick and simple, approval can happen within minutes, and if your bank accepts faster payments, then your money can be available within hours.
Quick loans are not a solution if you are in a debt spiral or debt crisis. They should not be used to pay off other loans, and you should be able to meet all your loan and debt obligations. If you are in debt difficulty you should seek independent financial advice.
If you feel that a quick loan is a manageable solution for you, and you are employed earning £500 per month, or more, quick loans can have some key benefits.
Find out what quick loans are here and whether or not it is a right solution for you.
Quick loans benefits: they can help in an emergency
We all face cash emergencies at home and in our personal lives. Your car breaks down and you cannot get to work, the washing machine breaks down, but it’s three weeks until payday. Your wages are late through no fault of your own, but you have to feed your family. If you have an unusual, emergency situation, where you need cash quickly, but will be able to pay it back within a few weeks, or at most a few months, a quick loan might work for you.
Usually, when you are paid at the end of the month, you repay your loan. Extending, or rolling on, short term loan commitments is not recommended as short-term borrowing has higher interest rates than traditional borrowing.
Fast and easy application process
One of the many quick loans benefits is how speedy the application process can be. You can find quick loans available in stores, or online. Using a loan partner service, like the CashLady website, allows you to apply with a number of approved loan providers, all at once.
If you meet the criteria for a short-term, or quick loan, you can proceed through a quick loan application. The basic criteria are:
- Living in the UK
- Employed and earning a minimum of £500 per month
- A working, open, UK debit account
- A mobile phone and email address, which are both in use
Quick loan application forms can usually be completed online and are quite straight forward.
The CashLady loan application aims to limit the number of fields you have to fill in on the form but includes the essential, and most important ones. This is for compliance, to assess your suitability, and to maximise the chance of your acceptance for a loan.
Your loan application is then sent to multiple FCA approved lenders. With CashLady, and any reputable loan partner site, or loan site, there should be no fees for completing a loan application.
Once your loan has been initially accepted your potential lender will make additional checks before they offer you the loan, and release the loan funds. The additional checks should include a credit check and an affordability check. The lender must know that you are able to meet your loan commitment and repay the loan.
You may need to have a telephone call with a lender and provide some proof of your employment and the minimum income of £500 per month.
You will need to agree to your loan terms, and read the terms and conditions. When you apply online many lenders will be able to send a pin code to your mobile phone, which you can then enter on your application online to signify your agreement to the loan, and its terms.
Approval in minutes, payment within hours
If everything goes smoothly, you meet the criteria and pass the credit and affordability checks, your loan approval could happen in minutes.
You will have provided bank account details where you wish to receive your loan funds. If your bank accepts faster payments your loan funds can be sent by your lender, and received immediately into your bank account, so you can deal with your emergency.
If you have bad credit you can still get a quick loan
Despite popular belief, quick loans benefits include the fact that if you have a poor credit history you may still be able to get a quick loan. There are short term loans designed for people with bad credit. The interest you pay may change and be high, however, interest rates and charges are capped by the FCA.
You should never pay any more than £24 per month for every £100 that you borrow. You should never have to pay more than double the original amount borrowed. Make sure you check out any lender or loan partner site you use thoroughly.
Quick loans benefits – Making quick loans work for you
Quick loans can be an effective solution to a very short-term cash crisis. The interest you pay will be high. Which means you will pay back more than you borrow.
Quick loans should not be used for leisure or entertainment purposes, it’s not worth it as it will cost you much more in the long run with the interest. They do work well for emergencies which you just cannot ignore.
For a quick loan to work for you, you should be able to pay back the loan within the agreed period. You do not want to be taking out more than one quick loan in any six-month timeframe.
If you feel that this is not a solution for you, read how to improve your financial situation and avoid quick loans in the future.