Just about everyone experiences cash flow problems from time to time. Perhaps an unexpected bill or expense shows up when least expected or you accidentally spend more than usual throughout the month, leaving you a bit short on money before payday. But what are cash loans? Cash loans are short term finance options can that can help you out in a cash emergency.
What are cash loans? Need cash in a hurry?
While everyone should have a monthly budget, be attentive to their spending and control their outgoings, sometimes that isn’t always possible – which means you might have to borrow some extra money to tide you over to the next payday. In the past, that wasn’t always that easy. It usually meant borrowing from family or friends. With the exception of an overdraft, which not everyone has access to, banks can certainly offer short term loans. For many cash-strapped individuals, it might even have meant visiting a pawn shop for some end-of-month money.
Today, that isn’t the case any longer. There are numerous companies offering quick cash loans to help people with unexpected expenses and shortfalls in money cash flow. Unsurprisingly, more and more people are taking up the offer of a short term loan of (mostly) small amounts of cash to take care of a short term financial emergency.
What are cash loans? Researching the cash loans UK market
There are a lot of different short term cash loan products out there with a wide variety of terms and conditions attached to them, so getting the right product at short notice does require a bit of research.This is particularly important when trying to understand the question, what are cash loans.
The good news is, as most people need the money urgently, lenders have made the application process for most of these unsecured loans as quick and painless as possible. However, it’s worth pointing out here, as with any company providing a service, the speed and efficiency of the provider can vary significantly from one company to another. Which is why it’s a good idea not only to look at what the company promises in terms of how long it takes to apply and how long you’ll wait for the money but to also scrutinize any customer reviews you can find online.
That said, because there’s so much competition in the cash loans UK market at present, most companies will do what they can to make the process as quick and painless as possible, offering to process your application within 24 hours and have the cash with you the next working day. Of course, as with any unsecured loan, once you’ve applied, there’s no guarantee that your application will be approved.
What are cash loans? Tips before applying for cash loans online
There are things you can do too to speed up the cash loans process. Be careful when completing your loan application. Make sure you have all the required information at hand and, whatever you do, don’t include false information on your application as this will almost always lead to your loan application being declined.
Always borrow responsibly. Quick cash loans are for financial emergencies. Don’t be tempted into borrowing money for a luxury item you don’t really need. Especially if financially, you’re strapped for cash. It’s a much better idea to save up your spare coins over time (you could even exchange any foreign currency you have lying around for UK currency) until you can afford the item without getting into debt.
Remember too that because cash loans are generally borrowed over a short period of time, in order to make them financially viable for the lender, the interest, or the APR (Annual Percentage Rate), can be considerably higher than those for loans from high street lenders, or even credit card APRs. However, quick cash loans are always much more convenient and easy to secure. You can apply for most online, so you don’t have to travel to the bank. In a sense, you’re paying extra for the convenience.
When to make loan repayments
When applying, make sure you know how much you’ll have to pay back. Most short term loans offer a choice of repayment terms, i.e., you choose the duration of the loan. Make sure you can afford the payments. Typically, cash loans are paid back in full on your next payday, but some payments can be extended over a month or two.
You may also have the option to pay back your cash loan before the agreed date. There is a chance this could reduce the interest paid, but again, look out for any early repayment penalties which could push up the cost of your loan.