What are quick loans? Quick loans are small, unsecured, short-term loans. They are usually in the region of £80-500.
They are also called payday loans, payday advances, salary loans, or cash advance loans. Quick loans usually have a very short repayment period, often until your next payday, or for a few months only.
The application process is relatively short, either in-store or online, and if approved, funds can be available within a few hours, or the same day. A loan decision is normally made by a provider within minutes.
Quick loans are used in emergencies. Interest rates are higher than with traditional borrowing so should never be a long-term solution, or to pay off other debt, or for non-emergencies such as holidays or material goods. They can be referred to as high-cost short-term loans. As a borrower, you must be responsible when borrowing. A quick loan should not be used to pay off another debt as this can lead to a dangerous financial situation, termed a debt spiral.
Quick loan interest rates?
A high-interest rate means you will be paying back more than you will borrow. Always check the interest rate offered by the provider, how much your loan repayment(s) will be, and the total loan amount you will need to pay back including interest. Make sure you can afford the repayments and that the loan is a good choice for your financial scenario.
Reputable short-term lenders are regulated by the Financial Conduct Authority. You should never use a lender who is not regulated. An approved lender will look at whether you can afford a loan before giving their decision.
Can I get a quick loan?
Most quick loans, or payday loan companies have similar lending criteria. You will need to be living in the UK. Employed and earning a minimum of £500 per month. You should also have an open UK based debit account, and a working mobile phone number and email address.
You need to be able to repay the loan within the agreed timeframe of a few weeks, or usually a maximum of a few months.
To obtain a quick loan you will need to complete an application form.
You can often get a quick loan even if you have a bad credit history or existing debt. But you should ensure you borrow within your means and meet your loan obligations on time. Payday finance is an option often used by people with a poor credit rating or poor credit history. However, depending on your circumstances you may still be refused. We make the application process quick and simple, and your application will go to a panel of trusted lenders one of whom may approve you for a loan.
When should I use a quick loan?
Unsecured short-term loans are most suitable for a cash emergency. Recent changes mean that approval can happen within minutes and payment of the money within hours. Unlike traditional borrowing which can take much longer.
They may be suitable if you have an emergency such as a car or home repairs, or an unusual situation within a month where you cannot wait until payday for everyday essentials, or to pay utility bills. An unexpected loss of income, or a case where your wages have not been paid, or are late, are also good examples. Though you will need to ensure you have a salary coming in, and employment, to qualify for your quick loan and repay it.
An excellent example of the use of a quick loan is an emergency car repair. You cannot get to work without your vehicle, but don’t have the immediate funds available to make the repair. If you are approved your quick loan is available on the day, enabling you to get back on the road, and to work. When you are paid at the end of the month, you repay the loan.
What are the benefits of a quick loan?
Quick loans can be a convenient solution to a cash emergency. Here is a quick summary of the advantages:
- The application process is quick, simple and you can apply on the web
- You can often get a quick loan even if you have bad credit
- Approval is usually super-fast – within minutes
- A quick loan can be agreed without printing or posting forms
- Your cash can be available on the same day (if your bank supports ‘faster payments’)
What are the drawbacks of a quick loan?
Not everyone qualifies for a quick or payday loan, but many people who do not qualify for traditional lending do get quick loans. It’s incredibly easy to find out if you can obtain a short-term loan. Here is a summary of the disadvantages you do need to bear in mind:
- Interest will be higher than with traditional lending
- Repayment will need to be within a few weeks or maximum of months
- They should not be used for non-essential items or to repay existing debts
- If you think you are getting into debt difficulty you should seek advice before taking out further lending.
How do I get a quick loan?
Quick loans are available in stores and online. When you find a loan provider or a loan partner service like the CashLady website, you will need to go through the loan application process.
We have partnered with a number of FCA accredited short-term credit providers who will try and offer you quick finance when you apply. Once you complete your loan application form, your details will be sent to our panel of lenders. If you are eligible for a loan and meet the lending criteria your application should be approved by one of our providers. We do not charge any fees.
Once your loan application is initially accepted by a lender they will usually make some additional checks before they release funds. These should include a credit check and an affordability assessment to make sure you meet the required criteria and can repay your loan as per the terms agreed. You may need to confirm some details on the telephone and prove your employment, and income. There will be a loan agreement to sign, including terms and conditions which you should take the time to read thoroughly.
Instead of printing off or sending forms your lender can send a pin code to your mobile, which you can use online to verify the agreement.
Once you have completed the process and are completely approved the money can be sent to your bank account.