If you’re looking to take out a quick cash loan then you're probably looking for a small amount of money that you can repay in a short space of time.
The benefits of a same-day loan approval.
When it comes to taking out smaller loan you're always going to be paying more interest than you would when taking out larger sums of money. ”Same day” cash loan and advances are really expensive so should only be considered in cash emergencies.
We’re going to discuss some of the quickest ways to get a short term loan but you should not that the faster you need the cash the more it’s going to cost you.
We’ll also take a look at some of the best ways to increase your monthly income to avoid running out of cash before the end of the month in future.
You could be looking for a personal loan to repair or upgrade your home, fund a family vacation, pay for your upcoming wedding, finance a car or even just catch up on past-due bills and mounting debts.
What you're going to be spending you're money on will play a part in what type of personal loan you take out. If you're looking for a smaller loan you'll be looking at a whole different ball game then a big loan.
What can you expect from these quick loans?
A samday cash loan comes in a variety of different packages but in general they are known for their stability. You will generally apply for a certain amount, be charged a fixed interest rate and make fixed monthly repayments. If you need a larger loan the truth is that there are no “quick” solutions. You will have to fill out an application form, wait for a credit score to be tallied, your forms to be reviewed, an interest rate to be set and finally an offer to be made. You can speed up the process by ensuring that you provide all the required documents and checking that you actually meet all the minimum requirements before you apply.
You should always ensure that your application form is filled out in full.
If your just short on cash till the end of the month you can avoid having to take out a loan altogether by borrowing from a family member or friend. Alternatively you could ask your employer to give you an advance on your salary. If you have a credit card you could contact your provider to request an authorised overdraft which will allow you to go over your credit card limit without incurring excessive charges. If you're claiming benefits you could be eligible for an interest free loan from the Social Fund.
If none of these are an option or you simply need more than they can offer – then you're probably going to have to go the personal loan route.
You can apply for a personal loan from many banks, retailers and alternative online micro lenders. If you have a good credit score you'll probably get a good deal in terms of a better interest rate and more flexible repayment options however, if you don't it will cost you more and your options will be more limited. Regular personal loan are sometimes a good option. You can get a personal loan from a bank, a credit union, a building society and many other alternative lenders. The quality of the deal you get is dependent on your credit report and making more than one application will affect it.
You can opt for a secured and an unsecured personal loan – depending on your credit score, how much you need to borrow and how you want to repay the loan. The nice thing about personal loans is that you can generally choose loan term so if you’re looking to make smaller repayments you can opt to choose a longer repayment term.
A conventional personal loan may come with a fixed monthly repayment (a fixed rate loan) with a fixed interest over the term of the loan or it may come with a variable interest rate in which case the payments will vary with the rate that is being followed.
Another way to get a personal loan is through a credit union.
This is a good option because credit unions don't work for profit and will generally offer some of the best interest rates. You will need to be a member of the particular credit union you are applying to and can then apply for a loan, unsecured or secured depending on how much you want to borrow.
The best thing about credit union personal loans is that there are no hidden fees, early repayment penalties and of course the low interest rates.
Apply for a credit card rather than a loan.
If you are looking to borrow for spending purposes you will be better off looking to apply for a credit card rather than a loan. There are many different credit cards available that can meet your needs, offer great bonuses and spare you from having to pay absorbent interest fees.
One of the best credit cards for spending is the 0% interest purchase cards.
These can only be used to make new purchases (you cannot draw money from this card) and the 0% interest free period is set for a specific time period after which you will be required to pay interest and fees. If you can clear your debt before the 0% interest deals ends - you will save yourself a large sum of money. If you fail to clear the balance on the card you will end up with a debt that is equal to or more expensive then a regular personal loan anyway. You should be aware of how you can use the credit card and how you can’t.
If you have a purchase credit card you will incur severe penalties for withdrawing money, transferring balances and exceeding your limit.
We’ll cut right to the chase – the fastest way of getting a loan is via a payday lender.
This can be done online and will repair your cash flow problem in as little as 15 minutes. Other lenders have a payout time of an hour or less – depending on which lender you use.
Since there are literally hundreds of lenders to choose from, using a payday loan online comparison tool will be your best bet. These comparison sites will usually be independent of any lender and will therefore provide you with more transparency in regards to interest rates, loan terms and fees. They may receive a commission from the lender if they refer you to one – but you’ll still save money finding a better deal so don’t let this deter you.
If you intend on paying back the payday loan within less than a month you may opt for a lender that has a higher interest rate but fewer transaction fees.
If you’re looking to repay the loan over a longer period of time then you’re definitely going to have to shop around for a lender that has a lower interest rate. Payday lenders rarely perform credit checks so even if your credit report is littered with negatives, you can still get this kind of short term loan provided you can prove you earn a stable monthly income. So what will happen if you don’t repay the payday loan on time? If you don’t repay the payday loan on time the loan will be rolled over.
This rollover will cause you to incur penalty fees and an increase in the interest rate that you took the loan out on.
What is Peer-to-peer (P2P) loan?
One option that is a good alternative to a payday loan and has become increasing popular is peer to peer (P2P) lending. This is a personal loan that you take out from other people willing to lend you money rather than a bank or micro lenders. Peer to peer lending can offer you a lower interest rate because there is not “middle man” involved in the process.
P2P lending is mostly done online and the website that connects you to someone willing to borrow you money will do the majority of the work for both parties.
If you don't pay up it will be the responsibility of this company to chase you payment. The major benefit in addition to the lower interest rates is that you can usually repay the loan early with little or no penalty fees that most mainstream lenders will charge. You will be subject to a credit check and the rate you get offered will be based on this but P2P lenders may run a soft search first and quote you on a loan so if you don't accept no harm will be done.
If you have a bad credit score you may be charged a higher interest or may even be denied a loan completely and interest rates can vary from 7% to 30% depending on your credit rating. Zopa and Ratesetter are two of the biggest and most competitive P2P lenders out there – so if you think this sounds like a good option for you may want to start with them.
If you don't keep up the repayments on a P2P loan you will be handed over to a debt collection agency and may even end up in court.
Defaulting or missing your payments will affect your credit report just as any other unmanaged personal loan would.
Definitely use a Loan Comparison Calculator.
When applying for a loan make sure to consider all of your options carefully by using a loan comparison tool to figure out which loan will be the most affordable.
A loan comparison tool will show you the monthly instalments you'll have to make on each loan, the APR, the loan term and the interest rate. Focus on the APR rather than the interest rates displayed and also consider the total cost of the loan.
Increase your Income & Save Money
Now, let’s look at a few ways which you can increase your monthly income or cut back on spending and possibly avoid getting a loan altogether.
The first thing that you need to look at is your budget. You must scrutinise each and every expense to see if it can be cut down or even cut out entirely. You can search for more competitive cell phone contracts, save on your utility bills and hopefully reduce your shopping. You can even pay off the high-interest credit card debt that’s sitting around on a low balance to help you free up some money in the coming months.
Another option I like is to request an increase from your employer – especially if it’s been due for a while or you’ve had a major increase in responsibilities over a short span of time.
You could also request a little bit of overtime and you'll be surprised at just how much this will add up to at the end of every month.
If your spouse or partner isn’t working maybe it’s time to discuss that they find a job to help pay for the expenses and put some money away.
You could also start a part time business or even get a part time job. This may not be suitable for those with serious family commitments but it can be something as simple as doing a bit of freelancing in the evenings. Additionally you could start doing some online work to generate more income. Whatever set of skills you have there is certainly a way that you can make money online with it.
Finally, remember that it’s much cheaper to use your savings than take out a loan – so if you're trying to pay for an expensive wedding why not pay for half of it using your savings and the other half using a 0% interest purchase card?
You may think that all this sounds complicated by if you're savvy about your finances and take the time to educate yourself on debt, savings and budgeting – you'll certainly become a force to be reckoned with!