Quick loans, by its name, is truly a way to access cash quickly. They are short-term loans that are unsecured method of borrowing. These loans help individuals deal with unexpected circumstances like financial emergency or perhaps a rush of payables shortly before payday.
How do Quick Loans work?
Quick loan lenders usually limit the loan amount for new borrowers. They allow you to borrower a loan amount below your salary range. After paying off the first loan on time, your subsequent applications may be increased.
Just like any other loans, quick loans are expected to be repaid within a specific period. The repayment period is usually sixty days. The loan cost includes the interest rate and other fees, if any. Quick loans usually come with much higher interest rate compared to regular loans.
Since quick loans are unsecured, they’re only supported by the borrower’s creditworthiness, which is typically based on the credit score. Unlike secured loans that use an asset such as the borrower’s home or vehicle as collateral or loan guarantee, quick loans don’t need one. In most cases, borrowers must have good credit ratings to be eligible for unsecured loans.
However, those with poor or bad credit can access quick loans. What’s important is to have a stable income. Other requirements may include holding an active bank account as a permanent resident in the UK, and you must be above 18 years old.
Taking Out Quick Loans
Most applications for quick loans get instant response as long as you give all the needed data. The process is a quick and easy procedure. You would know right away if the lender approves or rejects you. If approved, it takes as little as a few hours for a lender to transfer the funds, usually within 24 hours.
All the interaction involved takes place online. You don’t need to get an appointment with the in-store lender or call the lender for a loan application. You can submit your loan application online directly from home or office at any time of day or night. These lenders operate even beyond business hours.
While most bank loans are provided for a certain purpose, you are free to use quick loans for any personal expenses you desire. This makes quick loans more helpful, but riskier. That is why it is important to use them only for emergency expenses, and not for long-term financial obligations.
Quick Loans are ideal for Bad Credit
Lenders check your credit history each time you apply for a loan. Thus, you won’t be able to qualify for a traditional loan from banks and other traditional personal loan lenders if you have bad credit. On the other hand, you have a good chance of getting a loan approval with quick loans even with bad credit as long as you prove your ability to repay it right away.
Quick loan lenders may check your credit record, but that will be a soft credit check. A soft pull will not leave a footprint on your credit report. However, the lender makes its final decision based on your current situation.
The lender will let you know the amount you can borrow during the process. Once approved, use this quick loan to improve your credit rating. Always pay back your loan on time. This way, you can qualify to any loan easily for future financial emergencies.
The short repayment period for a quick loan may seem like a drawback, but it’s a way to protect your credit rating. A regular loan usually requires one or two years to repay fully it. You may miss some payments especially when you don’t have any alternative source of income.
Quick Loans in the UK
Everyone needs quick cash one way or another, whether it’s for urgent repairs, pay for an overdue utility bill, or settle a medical emergency. If you have to borrow that money, there are many options for you in the UK.
One option is to work with an online lender. Online personal loans are popular in the UK. These loans can provide you cash within a day or two. Unlike loans from banks or credit unions, which could take a few days to a week or more, Online personal loans are really quick.
Many lenders in the UK offer quick loans. However, before you take out a loan from any lender, shop around, especially if you have thin credit or low credit score. What you get in exchange for borrowing quick cash with ease and convenience is a sky-high annual percentage rate (APR) and interest rate payments that could trap you in its loan cycle.
A quick loan such as payday loan is also one of the best solutions for any financial emergency. Payday loans help cover sudden expenses before your payday comes. This loan helps you avoid penalties imposed on late payments on bills.
A quick loan is a short-term solution that anyone can apply, especially those with low credit scores. A quick loan is perfect for unforeseen urgent expenses. Many lenders understand that when you need money right away, you need a quick loan with not so much fuss. Application usually will take a few minutes, and you’ll get a loan decision instantly. Once approved, you’ll have the funds in no time.
Quick loans can be a great solution if you are in dire need of extra money, and especially if you are in an urgent, tough situation. However, it is very important that you apply for a loan that you are capable of paying. If you make repayments on time, then you will easily be able to improve not only your score, but also your overall quality of life.
The amount you can apply for can greatly vary depending on the lender, so make sure that the loan you apply for is affordable to you. Stick to the repayment plan and it will have a positive effect on your credit report. You’ll improve your reputation and credit score among lenders, making future financing easier.