What is a cash loan?
When you have an unexpected financial emergency and need an instant cash advance, most of us will only need to borrow a small amount.
Cash emergencies come in all shapes and sizes. It could be an unexpected car repair, a new washing machine, or maybe you need to make some emergency repairs to your house.
If you are applying for a standard personal loan from the bank, they will normally set a minimum loan amount of £1000. The process can often take longer, which can be a problem if you need money quickly.
What can I use my loan for?
A cash loan can normally be used for any purpose. People borrow money for all sorts of reasons, including:
- Car repairs
- New vehicle
- Household items
- Home improvements
- Unexpected bills
You can apply for a loan for any purpose as long as you borrow responsibly and know you can make scheduled payments on time. Quick cash loans can be helpful in helping you keep your finances on track. Especially when you have a short term cash flow problem.
Used correctly and responsibly, cash loans can be useful in times of need.
Where can I get a cash loan of up to £1000?
If you are looking for money today, you have several options. These included;
- Borrow from friends or family
- Dedicated websites (lenders & brokers)
- High Street loan providers
- Main Street Banks
Friends or family
Borrowing money from friends or family can be especially helpful if you need a small amount.
If you need to borrow less than £100, this might be the quickest and most convenient option.
However, if you decide to borrow money from family or friends and you don’t repay the money, it could strain your relationships and you could find yourself in an uncomfortable position.
If you think there’s a chance you won’t be able to repay the money or you need a larger amount, it might be worth considering other options.
Online money loans
For many people, borrowing from friends and family is not an option. Going to a physical store may also not be ideal due to the time and money involved.
If you have a real financial emergency and have internet access, an online loan is probably the quickest route. Short term loan amounts generally range from £100 to £1000, although some providers offer higher loan values.
You can choose to request money directly from a lender or through an online broker such as CashLady.
Advantages of online cash loans:
- Easy online application
- Quick decision
- Fast money transfer
Loan applications by phone
If you don’t have internet access or prefer to speak to someone in person, most UK lenders have a call center who can walk you through your application and complete it for you over the phone.
Applying for a cash loan over the phone means you can ask questions about anything you’re not sure about. You can also be reassured to hear a human voice.
If your loan application is successful, you may be able to receive same-day funds paid directly to your bank account*
High Street Loans
Short-term high street liquidity providers are less common on high street these days, but there are still many lenders serving customers from physical locations.
Many pawnbrokers offer unsecured loans alongside their main pawnbroking business. This means you can choose to secure a loan against something of value you own or just take out a cash loan.
H&T is one of the best known street operators.
Everyday Loans has branches across the UK where you can go in store to get a loan. However, you will need to make an appointment online.
Benefits of a high street cash loan:
With a consumer loan, you will need to visit the physical store and complete your paperwork in store. If you are approved on the same day, you can receive physical silver on the same day. This could help you if you have an urgent financial commitment.
Disadvantages of a consumer loan
Because you have to physically go to the store, it may not be practical. If you live outside of the city itself, you’ll need to factor in the time and money it takes to get there.
If the lender requires additional documents or proof of income, you may need to return home to collect them before returning.
This could mean waiting longer than necessary for the cash loan you need.
If you have an urgent financial emergency, you may not have the luxury of waiting another day.
How fast are instant cash loans?
People who search online for “instant loans” or “loans today” normally need money urgently.
If your bank accepts faster payments, your loan could be transferred within minutes of approval.
It is important to remember that although the online cash loan application process is generally quick and easy, that does not mean that a decision is always immediate.
Much will depend on the information you submitted and whether you met the affordability criteria.
Although you may be tentatively accepted for a loan online, additional checks are common and could potentially mean that the money you need is not transferred the same day.
How to guarantee the success of your cash loan application
Online loan applications are convenient ways to request emergency cash. But you must ensure that the information you submit is honest and accurate.
Any erroneous information could slow down the progress of the subscription. In some cases, your cash loan request is automatically refused (if, for example, your address is entered incorrectly)
If you provide false information on your loan application and your loan application is approved on that basis, you may be subject to fraud investigation/prosecution.
Make sure you don’t have any outstanding cash loans with someone else, or large debts on your credit card – each of these can be a telltale factor when a lender decides to issue an instant cash loan.
Any financial commitment or obligation can and will be taken into account.
Before applying for any type of personal loan, you must ensure that you can comfortably pay the monthly commitments.
This means that you need to look at all of your monthly expenses and compare that figure to your regular monthly income.
If you have this information, why not use CashLady’s Affordability Calculator to help you out before you complete an online application.
What to do if you are refused?
Finally, if you think your application for a short-term loan has been unfairly denied, speak directly to your lender and see if they can explain why. It may mean that there is incorrect information on your credit file that needs some attention.
The success of your application depends on many factors. For example, the loan amount you choose could determine which lender matches your request. If your loan amount is too high, some lenders may not lend you that amount the first time.
If your credit report contains incorrect information, deleting it could help you meet your future loan needs.
Can I get a cash loan with bad credit?
Many people with bad credit qualify for a cash loan. The process of getting a loan with bad credit is pretty much the same as getting any other type of loan. Your application details are the same, but you may find that certain products or interest rates are not available to you.
Are bad credit cash loans expensive?
Many bad credit loan products have high interest rates, but all lenders regulated and authorized by the Financial Conduct Authority (FCA) must observe maximum daily interest rates of 0.8% per day. This means that you cannot pay more than £24 per month for every £100 borrowed.
Before committing to any type of loan, make sure you understand how much you will need to repay and over what period of time. If you are unsure, ask questions or ask for help.
Are all cash loan providers authorized and regulated by the Financial Conduct Authority?
The Financial Conduct Authority regulates all credit providers operating legally in the UK. This includes pawnbroking and home loans. If you borrow money from friends, family or illegal loan sharks, you will not be protected by the FCA.
Firms authorized and regulated by the FCA have been carefully vetted and operate to the highest standards.
CashLady will only work with loan providers authorized and regulated by the FCA.
We can help you find a loan that’s right for you and offer you a simple and straightforward application process designed to give you quick and convenient access to the online cash loan market.