There are lots of different types of loans with all sorts of different names and it can be difficult to know what each is. However, if we want to make good decisions with regards to choosing the right loans, it is important to make sure that you are able to know what you are picking between. Therefore, knowing what is meant by a cash loan, for example, will be extremely handy. Make sure though, that you know about all of the types of loans, even ones you think you will never use, because when it comes to a time when you need a loan you may not have the time to do this research,
What is a Cash Loan?
A cash loan is a specific sort of short term loan where you get the money that you need in cash which is delivered to your home. You then repay in cash instalments. The money provided tends to be a small amount – perhaps up to £600 and you do not need a bank account to get it. You will need to have some identity checks done and fill in an online application. Then the money will be delivered to your home and someone will call round and collect your repayments regularly.
Who is it For?
As the loan is paid and repaid in cash it is suitable for people who do not have a bank account. Some people may have an account because they have recently moved to the country or they have too poor a credit record or something like this and therefore most types of loans are just not an option for them. These loans will specifically be able to help people like this. They can also be handy for people that want to borrow cash as most lenders will not pay in cash but transfer money into a bank account. Sometimes having cash is the preferable option perhaps if the money is to give to someone or to pay someone who will only take cash and so this can be very handy as well. The loans are similar to other short term loans in that they may be available to those that have a poor credit record as well. It will depend more on whether they have an income and their ability to repay right now, rather than what their past record for repaying has been.
There are no limits on who can use the cash loans with regards to why you need the money or what you will spend it on though. The lenders will not need to know about this. They will need your address details and you will need an income, but it does not have to be earnings, it could be possible that benefits will be suitable. The lender will look at your outgoings as well as the money coming in to see whether they feel that you will be able to afford the necessary repayments and that will determine whether they offer you a loan or not.
Therefore, it is worth knowing what the cash loan does just in cash you need some cash in a hurry. You may think that you will just withdraw it but you are limited it how much you can withdraw from a cash machine and that means that you may not be able to get enough this way. It could also be the case that you do not have the cash available and so this loan could help you to get some extra. It is good to know that it is there, just in case you ever need to use it.