What are Quick Loans?
In an ideal world, we’d all have the money that we needed to deal with an emergency stashed in a bank account or savings account somewhere.
Unfortunately, the truth is that most of us can only budget enough money aside for our everyday bills and expenses. That means that when unexpected problems happen, we don’t always have the cash to deal with them.
Until somewhat recently, the typical, or conventional loan products on the market just weren’t suitable for people who needed to borrow money for an emergency. Some payday loans in the UK were designed specifically for certain purchases, like mortgages or car finance. Other options, like personal loans, took too much time to get approval for, and then finish paying off.
The marketplace demanded an alternative option for today’s fast-paced consumers, and quick loans were born.
So what are fast loans, and how do they work?
How much would you like to borrow?
Representative Example: Rates from 49.9% APR to max 1333% APR. Minimum Loan Length is 1 month. Maximum Loan Length is 36 months. Representative Example: £250 borrowed for 30 days. Total amount repayable is £310.00. Interest charged is £60.00, annual interest rate of 292% (fixed). Representative 669.35% APR (variable).
Understanding Quick Lending
Quick lending is all about bringing money to people who need it without the long waiting periods and exhausting delays. If you’ve ever struggled to find the money to pay for an urgent situation before, like a flat tyre or a broken dishwasher, then you’ll know how complicated conventional lending can be. Often, with a personal loan you’ll have to present your case to a bank or building society representative and wait days or weeks to be approved.
When you need to access money fast for the wellbeing of yourself and your family, personal loans just aren’t a practical choice. What’s more, these lending options can also be particularly difficult for people who only want to borrow a small amount of cash. With a personal loan, the more you borrow, the less interest you pay, making small loans a nightmare.
Fast loans, otherwise known as short-term or payday loans are designed to give you money almost instantly. While most of the lenders we see here at Boutell offer access to cash within 24 hours, there are some that can offer approval for your loan within an hour.
Quick loan providers offer assistance for the unexpected moments in your life when your budget won’t stretch far enough to cover an emergency expense. With these loans, you can borrow money fast and pay it back just as quickly. Often, you can get all of your debt out of your hair within one month or less, meaning that you have fewer budgeting issues to worry about.
Is A Fast Loan Right for Me?
Although quick loans aren’t the right solution for every lending situation, they do offer a lot of benefits in the right circumstances. These loans give you the emergency cash that you need at your fingertips without the complicated application process associated with traditional loans. Aside from being available as fast as you need them, short-term or fast loans are also excellent for other reasons.
For instance, you’ll often find that applying for these loans is better for your credit score than applying for a typical loan. That’s because when you work with a broker like Boutell, we can take your application to lenders who perform a soft credit check. These soft credit checks allow lenders to determine whether you can afford to repay your loan according to the terms and conditions that they lay out on their websites. However, at the same time, soft checks don’t leave the same fingerprints on your credit report as a traditional hard credit pull.
You can make sure that you know which lenders are most likely to approve your loan before you even begin working on a complete application. What’s more, the application process for short-term and payday loans is generally a lot easier too. Because the lenders are only giving you money for a short period of time, they don’t need to know as much to find out whether they’re going to give you your loan.
Often, you’ll find that a short-term lender will approve anyone who:
- Is a resident of the UK: You need to be a UK citizen to apply for a loan at this time, whether it’s a payday loan or otherwise.
- Is over the age of 18: Everyone who wants to borrow money needs to be a legal adult in the UK. That means you need to be over the age of 18.
- Has a UK bank account: You’ll need an account that your money can be paid into when your loan provider decides to approve you.
- Has a regular source of income: You need a monthly income to ensure that you can afford to repay your loan every month.
- Has been employed for a reasonable amount of time: A long term job makes you less of a risk than short term employment.
Typically, your quick lenders will also look for some of the same things as a traditional lender too. For instance, they’ll want to make sure that you don’t have any instances of bankruptcy that you’re dealing with at the moment, or any other major loans that will make it hard to repay what you owe.
How Does Getting a Fast Loan Work?
Getting a quick or short-term loan from a payday provider is usually an easy enough process, particularly if you’re working with a broker like Boutell. With us, all you need to do is fill out a basic application and we’ll look through lenders on your behalf. Once we’ve found a selection of the best lenders willing to give you your loan, we’ll give you as much information as possible about each of them, including the interest rates and terms that they may be able to offer you.
Keep in mind that the interest rates a lender advertises on their website won’t always be the same as the ones that you get. The terms of your loan will depend on a number of important things, including the results of your affordability check.
You’ll need to make your decision on where to borrow from based on a number of things, including how much money you need to borrow. Many short-term lenders are limited in the amount of cash they can get you within a short period of time. You may find that if you need to borrow a lot of money quickly, you need to go with a specialist.
You should also think about:
- How you can repay your loan: Different lenders offer different repayment strategies, including the option to set up an automated or direct debit payment at the end of the month.
- Extra fees: We’re upfront about all of the extra fees a lender might add onto your lending costs. Make sure you can afford to pay for all the costs.
- Customer service: It’s always worth looking at the testimonials and reviews you can find about lenders online to see which companies give you the best customer service.
- Soft checks: It’s always a good idea to go with a lender that can give you approval for your cash advance loan using a soft credit check before they require a hard credit pull.
The good news?
Once you’ve chosen the right lender from your list of options provided by Boutell, you could be able to access the money you need for your emergency situation in a matter of hours. This means that dealing with your urgent issue becomes a lot simpler.
Choosing a Fast Loan for Your Lending Strategy
A fast loan isn’t the right option for every lender, or lending situation. However, if you need money quickly and you can pay it back fast too, then you’re in the right place. A quick loan gives you access to the cash that you need within 24 hours or less. Most of the time, these lenders can also work wonders for your credit rating. Because you’re paying the money you owe back within a month or less, there’s less of a risk that something will change in your life, and you’ll be unable to make repayments.
On top of that, taking out a loan and paying it back on time is a great way to show the credit bureaus that you can be trusted. If you’ve ever had issues with credit in the past, a fast loan could be a simple way to start building your score up again.
Quick payday loans or emergency lending solutions are often best suited to people who need to borrow money before their next payday. If something happens in your life and you can’t wait more than a day for money, this lending option will give you the cash you need without the headaches.
What’s more, with help from a broker like Boutell, you can boost your chances of a happy and successful loan experience. We’ll do the hard work of searching through loan providers for you and finding someone who’s willing to approve your application. That means that all you need to do is choose the loan provider you want and accept your money.
Do you need a loan fast? Start your application today and see how easy it can be to borrow!