Could Fast Loans Be Right For You?Virtually everyone has times when emergencies come up and paying later just isn’t an option. That’s when it’s important to understand how you are able to get a fast loans right away.
What is a Fast Loan?Lenders tend to cater to specific customers and fill a rather narrow segments of borrowing needs. One lender may offer longer-term loans with very low risks involved, whereas others offer short term solutions. When an emergency arises and cash is short, fast loans can help you solve an immediate cash flow need. This allows for loan repayment once you receive your next pay cheque. As an example, when a vehicle repair needs to be dealt with immediately, a fast loan might be the best way to resolve the problem.
Advantages of Fast Loans
One issue facing any borrower is time. While in some cases, paying a bill or making a purchase can wait, far too many times the cash is needed quickly. That means waiting for traditional lenders to approve a loan is not an option. If you’re planning to purchase a new vehicle, for example, it’s relatively simple to contact online direct lenders ahead of time to find one offering a set of terms that’s ideal. Yes, it’s possible to walk into a car dealership and get financing through the dealer quickly, but the terms available might not be the best.
Finding the best option will probably require a few days, and that’s fine when the purchase isn’t an absolute necessity. The same thing is true when purchasing furniture or other durable goods. It pays to shop around not only for the best prices but also for the best financing terms. Fast loans vary dramatically from one lender to the next, suggesting buyers are generally better off when they take time to explore all their options. However, when the car needs to be repaired today or the need simply can’t wait, there may be no option but to locate and take advantage of a lender who can approve fast loans and transfer the funds without any delays. That’s when a payday lender is the best choice for borrowers.
Drawbacks of a Fast Loan
The primary disadvantage of fast loans could be their costs. Borrowers must be aware that the interest for a payday loan generally falls between 20 and 35 percent, which can translate to an APR of 1000 percent or more. Borrowers, far too often begin to rely on loans, and the costs involved can quickly eat up a pay cheque, making it even more difficult to pay bills the next month. That results in a never-ending cycle of borrowing and repaying loans just to get through the month.
The last major disadvantage is the fees added should a borrower fail to repay the fast loan on time. In those cases, the fees involved escalate rapidly, making an already expensive borrowing option, even more costly. It’s also important to deal with a lender you trust. Whilst most lenders are honest, there are a few that won’t fully disclose all the details of a payday loan. Carefully reading all lending documents prior to signing will reduce the likelihood of misunderstandings. If you’ve got questions, asking them and getting satisfactory answers before accepting the loan is strongly recommended.
Understanding the Process
The interest rates for payday loans can be very high at some lenders, and the maximum loan amounts will vary. Borrowers are always encouraged to check out the lender’s fees prior to borrowing. It’s also important to understand that every lender is required to check a borrower’s credit rating prior to providing a fast loan. Traditional lenders generally put a great deal of emphasis on credit scores, often denying loans to anyone with a spotty credit history. Payday lenders, on the other hand, tend to be more lenient, but credit scores still matter, so it’s always important to repay loans promptly. While payday lenders will loan money to those with lower scores, past repayment histories can play a role in the amount the lender is willing to provide. Repaying fast loans promptly will, as a rule, make it easier to obtain payday loans in the future, so lenders encourage borrowers to make sure they never borrow more than they will be able to repay on time.
How do I apply?
Applying for fast loans is generally easy. Online applications make it possible for borrowers to obtain a decision swiftly. If a lender has questions, they can be addressed quickly to make sure the borrower’s needs are filled. Once the application is approved, the money is transferred to the client’s account quickly, assuming the bank has the ability to accept the transfer the same day.
The online application process is, in a way, safer for many borrowers. The documentation is there for borrowers to inspect, and there is no lender sitting across a desk pushing for a fast signature.
Taking the time to read the lending agreement is important to ensure you fully understand the details of the loan. If there are questions about a specific clause, it’s easy to get a quick answer to that question.
- MoneyBoat is a direct lender, which helps to keep costs down. Borrowers don’t pay a broker or middleman in this situation. The Moneyboat services are direct, safe and secure.
- The customer service team at MoneyBoat are always polite and friendly. Our borrowers always know that they can count on them in their time of need for all necessary support.
- We charge a flat interest rate of 0.7 percent per day. This interest is calculated on the outstanding balance of the loan. There are then no upfront fees for loan processing or same day payment. New customers can borrow from £200 to £800. Loans are repayable over a minimum term of 2 instalments and a maximum of six months. The minimum instalment duration for the first instalment is 5 days. Existing customers can borrow up to £1500, subject to passing our credit and affordability checks. Customers may payback their loan early with no penalties or fees.
- In the event a borrower finds they cannot pay the loan as agreed, MoneyBoat works with them to find a solution that all parties can agree upon to settle the debt in a timely manner.
Representative Example: based on the last working day of each month
Interest rate 255.5% pa (fixed) Representative 939.5% APR
|Payback period||4 months|
Fast Loans Are Not Long-Term Solutions
Whilst most borrowers are responsible and repay their loans promptly, others tend to find themselves borrowing money month after month. This is often just to take care of recurring expenses. In short, payday loans could be extremely helpful when emergencies occur.
We encourage clients to develop healthy financial habits to minimise the number of times high-cost payday loans are needed. Saving money is often difficult. However it always pays to develop a habit of putting a percentage of every pay cheque into a savings account.
There are several agencies available to help anyone experiencing financial difficulties. They help you to develop strategies that will keep debts under control. If you’re in need of financial advice, it pays to take advantage of the UK Financial Ombudsman, StepChange, or The Money Advice Service.
If you’ve got questions about your rights as a borrower, Citizens Advice has the answers you need. They’ll provide the advice you’re looking for to deal with mortgage issues, other debt solutions, and even how to borrow money.