Could Fast Loans Be Right For You?
Virtually everyone has times when emergencies come up and paying later just isn’t an option. Fast loans can help by enabling you to access cash right away.
Understanding Fast Loans
Lenders tend to cater to specific customers and fulfil a rather narrow segment of borrowing needs. One lender may offer longer-term loans requiring security, for example, whereas others offer short term solutions to help when you need money really quickly. When an unexpected emergency arises, and cash is short, quick loans can help you solve an immediate cash flow problem. Quick loans can be relatively easy to apply for and secure and usually allow you to repay the loan after your next payday. As an example, when a car repair needs to be dealt with immediately, a fast loan that you can afford to repay could be a way to resolve the problem.
Time can be a major issue facing borrowers. Sometimes paying a bill or repairing a car can wait a few weeks or months until your next payday, but other times cash is needed quickly. In these situations, waiting for traditional credit lenders to approve a loan may not seem a viable option.
It is important to shop around for a great credit deal regardless of the type of loan you are looking for. Quick loans vary dramatically from one lender to the next and buyers are generally better off when they take time to explore all their loan options before they apply. However, when your boiler’s broken down and you have no cash until payday, a lender who can approve quick loans and transfer the funds within 24 hours could be what you need.
Fast Loan Benefits
- A fast loan enables you to access quick credit with funds often available in your bank the same day.
- You may be able to secure a fast loan, such as a payday loan, more easily than other loans like personal bank loans and credit cards.
- Fast-loan providers offering a great service should still carry out a credit check when you apply to ensure you haven’t got existing debt problems. This applies to those offering payday loans and other quick loans.
- A good direct lender offering a responsible loan service will also check you can afford repayments to prevent you taking out loans you can’t afford to repay.
- A fast loan UK can usually be applied for online and the process is usually quick and easy. You will usually need to give some personal details required to undergo a credit check, such as your bank account details and whether you are employed, when accessing quick cash loans.
- You may be able to log onto a lender’s site to use their online calculator, which can help you decide how much money to borrow and how long you can repay your credit.
- A fast loan is quick and relatively small in value terms, which means this type of loan can cost less than a larger personal loan in total, despite often having higher interest rates.
- Direct lenders like us, who offer access to fast loans repayable in instalments, can help you to avoid turning to unscrupulous payday lenders.Drawbacks of a Fast Loan
Fast Loan Drawbacks
- Borrowers must be aware that the interest for a payday loans can be very high, when compared with other types of credit that is not available as quickly.
- Borrowers sometimes begin to rely on fast loans, and the costs involved can quickly eat up a pay cheque, making it even more difficult to pay bills the next month. This results in a never-ending bad cycle of loans and borrowing just to get through the month.
- Sometimes a quick loan can come with hidden charges and credit fees and most will charge penalties for non-payment. These charges can add up quickly, so make sure you are clear on all your lender’s terms when you sign up to a loan. Here at Moneyboat, we make our charges clear from the outset and encourage borrowers to read our terms thoroughly. We also never charge for early repayment. This is what we consider to be great service.
Understanding the Borrowing Process
The interest rates for payday loans can be very high at some lenders, and the maximum loan amounts will vary. Borrowers should check out the lender’s fees before they apply. It’s also important to understand that every lender is required to carry out a credit check prior to providing a fast loan or any other type of credit for that matter.
Traditional lenders generally put a great deal of emphasis on your credit score, often denying loans to anyone with a less-than-perfect credit history. Payday lenders, on the other hand, tend to be more understanding . Having said that, they will still check your credit score, so it’s always important to repay loans promptly as missing payments can harm your credit rating.
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 a quick loan promptly will, as a rule, make it easier to obtain short term credit and payday loans in the future. This is why it is so important to ensure you can afford the repayments before agreeing to a loan.
Comparing fast loan UK lenders isn’t always easy, but there are a few initial questions you need to answer to help you find the right quick loan provider:
- Do they offer bad credit loans?
- How much money can I borrow as a quick loan?
- When do I need to repay the money I borrow through the loan?
- Can I pay back the cash in instalments?
- Would it be easy to apply for a quick loan?
- Will they perform a credit check?
- Do they consider responsible lending to be important?
- What charges and fees do they apply to the loan?
- Do I have to pay back the loan on my next payday?
- What’s the interest rate charged on the loan?
- Would I be able to use a guarantor to secure a quick loan if I have bad credit check results?
- Can I apply for a loan online?
- What are the eligibility criteria for the loans?
- Are they FCA authorised to provide payday loans?
- Is there a more suitable alternative source of the cash I need?
How Do I Apply?
Applying for fast loans is generally easy. Online applications make it possible for borrowers to obtain a credit decision swiftly, even if they have a bad credit record. If a lender has questions, they can be addressed quickly to make sure the borrower’s needs are met. Once the application is approved, the money is transferred to the client’s account usually within hours, assuming the bank can accept the credit transfer the same day. This means you’ll have the money available for spending almost right away.
The online loan application process is, in a way, safer for many borrowers. The credit 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 credit agreement is important to ensure you fully understand the details of the fast loan or payday loan. If there are questions about a specific clause as you read, it’s usually easy to get an answer before you apply. Remember, we strive to never lend to borrowers who we feel will struggle to keep to the credit agreement and make the loan repayments on time.
Why Choose Moneyboat?
Moneyboat is a direct lender based in the UK. Borrowers benefit as they don’t pay a loan broker or middleman to help them sort their credit. It’s important to us that our loan services are direct, safe and secure.
Our customer service team is polite and friendly, and our borrowers always know that they can count on them in their time of need for all necessary support.
Here’s Lowdown on our Fast Loans
New customers can borrow from £200 to £800. Loans are repayable over a minimum term of two instalments (could be weekly or monthly, depending on the customer’s pay dates) and a maximum of six months, which means you don’t have to repay the entire balance of your loan on your next payday. The minimum duration for the first instalment is five days. Existing customers can borrow up to £1500, subject to passing our credit and affordability checks. We do not require full repayment in 60 days, however, customers may pay back their loans early with no penalties or fees.
In the event a borrower finds they don’t have the money to 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.
What if I Have a Bad Credit Record?
If you need access to quick cash but have a bad credit record, consider your options carefully. If you apply for one of our loans, we will give your application due consideration, but we cannot always offer money to those with bad credit histories.
This is because a bad credit record suggests previous problems with credit and possible missed repayments. When those with bad credit apply for one of our loans, we do take into account other criteria, such as general financial situation and employment status. However, a credit check must be carried out and quick cash will only be offered to those who we believe can repay the money comfortably.
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|
Why Responsible Lending is Important to Us
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. We want to help prevent our borrowers falling into a cycle of bad debt and we do this by lending responsibly.
We encourage clients to use our online calculator and to try to develop healthy financial habits to minimise the number of times high-cost payday loans are needed. Saving money is often difficult, but it always pays to develop a habit of putting a percentage of every pay cheque into a savings account. We also try to help our borrowers avoid high-cost payday loans by offering an alternative whereby their fast loan is repayable in flexible instalments, rather than all at once on their next payday. This means our loans can sometimes be more affordable to borrowers as they can spread the cost over as many as six months and try to budget accordingly.
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.