In the simplest terms possible, cash loans can be defined as small loans taken to cater for emergency cash needs. The loans are usually unsecured which means they aren’t taken against assets like cars or homes. Although different cash loan providers have different terms, you need a pay slip or proof of income to get a cash loan. But most importantly, you need a reliable lender like Swift Money.
Cash loans are meant for catering to unexpected expenses such as; home repairs, a hospital bill, a car repair bill, rent arrears (due to a temporary reduction in your income) or a home appliance bill (because you need to repair or replace your microwave).
Are personal loans better alternatives to cash loans? Typical short term loans aren’t ideal in emergency situations because the least you can borrow is ?1000 and most emergency cash needs can be catered for less.
Furthermore, if you take a standard personal loan, you’ll be forced to borrow money over a longer period (at least one year), yet you just need a small loan to get you to the next payday. Taking a personal loan can turn a small cash emergency into a straining long-term financial commitment.
What are cash loans for?
You can take a cash loan for emergency expenses that can’t wait until your next payday. These expenses include but aren’t limited to;
• Emergency home repairs, i.e., plumbing or roofing repairs • Unexpected hospital bills • Emergency car repairs • Settling rent arrears before your next payday • Repairing or buying a new home appliance like a microwave.
Where can I get a cash loan?
You can get emergency cash from three main places namely; friends or family members, high street loan providers or dedicated websites (lenders/brokers). Each of these sources of emergency cash has pros and cons.
Almost everyone has borrowed money from friends and relatives, however, it’s not an ideal option when you don’t want everyone around you to know your ”business”. Furthermore, you may already have an unpaid loan, so you find it difficult turning to the same people for help. You also risk straining your friendship/relationship with your friend/s or family member/s if you are not sure about the repayment date. Borrowing from friends and family members may be a fast and great option (interest-free); however, you risk damaging your core relationships if you have repayment problems. It’s also a bad option when you need more than ?100.
Almost all high streets in the UK have loan providers. There are countless pawnbrokers and high street loan providers ready to offer loans in the UK. These loan providers have pros and cons.
• Great for settling local financial commitments: You can visit a high street loan provider personally and fill in an application. If your loan is approved, you can get money the same day.
• Not convenient if you live out of town. You need to visit high street loan providers in person. • Expensive: High street loans usually attract a higher interest than most short-term loans. Furthermore, you need to incur transport costs to access the loans. Let’s not even discuss paydayloansohio.net/cities/willoughby/ the time value of money. • Can take longer than a day if the lender needs additional documentation such as proof of income.
If you don’t want to borrow from your friends/family or high street loan providers, online cash loans are a great alternative. They are the best alternative for you when you need money immediately! As the name suggests, these types of cash loans are accessible online. You can get online cash loans directly from a lender or a broker like Swift Money®.