Author: Simon

I really love to write about finance. This is because I know that this is a subject that will impact a lot of people. Everyone has to deal with money and try to find the best ways to manage it. I hope that with my writing I am able to help people to understand more about it and make the right decisions when they are choosing financial products and setting budgets. That is why I try to include information in my writing which should help with this such as explaining different things and guiding the readers to think about the consequences of the decisions that they are making.
Cash Loans

What are Cash loans?

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.

No Credit Check Loans

Can I Use no Credit Check Loans to Buy Anything?

There are some loans that are designed for specific borrowing needs. Things like a mortgage have to be used for buying a home. However, there are other types of loans which can be used for anything you wish, such as a no credit check loan. However, despite that flexibility, you may find that you will be limited in what you can buy with it due to the features of the loan.

How Much you Can Borrow

With a no credit check loan you will be limited in how much you are able to borrow. The loans will normally be for relatively small amounts. These can between £100 and £1,000 but this will depend on the lender. It may also be dependent on whether you are a first time borrower or not. Some lenders will want to build up trust with their borrowers before they allow them to borrow larger sums of money from them. They will perhaps just lend small amounts of money to start with and if that is paid back in full and on time, they will feel that they can trust the borrower and lend them more money. Therefore, it could be the case that you will not be able to borrow that much money. This will of course limit what you can buy with the loan as you will not be able to buy anything that is more expensive than the money that you are allowed to borrow. If you do need a larger amount than one lender is offering then check with others as they will be different and you may find one that will be prepared to let you borrow the amount that you want.  

The Speed of Repayment

It is important to know how quickly you will be expected to repay the loan. This is important because you will need to make sure that you can come up with the money to be able to do this. It is all very well to borrow the sum that you need but you could find that you will struggle to pay it back. You do not want to borrow so much that this will happen. Sometimes, you may be able to find a no credit check loan where you can repay in instalments. This can be handy because it will allow you to spread the cost across a number of months and you will be able to borrow more money and be able to repay it. However, it will make the loan more expensive and so you will need to consider whether you are prepared to pay that extra money.

Cost

It is a good idea to work out the cost of the loan as you will need to work out whether you think it provides you with good value for money. Consider the cost of the item that you are buying with it and then think about whether you feel that it is still a good price even when you account for the cost of the loan. Think about whether you still consider this to be good value for money or whether you feel that it will be too expensive when you also add on the cost of the loan.

So, although you are able to use the loans to buy whatever you wish, there will be restricted in some ways. You will need to think about how much you are able to borrow and whether that will be enough for you to buy the item in question, consider whether you will be able to cope with repaying that money when required and decide whether you are happy with the additional cost of the item you are buying due to the fact that you borrowed the money to pay for it.

Emergency Loans

Can I Use Short Term Loans for Emergencies?

There are some circumstances where we need money really quickly and we might turn to a loan to try to get it. It is good to know which loans yo might be able to use so that if you are in this situation and you have no savings or other money to fall back on, you will know where you can get the money.

Overdraft

If you have a current account then you might have an overdraft facility with it. The amount of money that you can borrow with an overdraft will vary depending on the bank that you are with so you will need to check this out and see whether it will be enough. It is worth noting that overdrafts tend to be pretty expensive. They will charge interest at 35-40% which is higher than many other forms of borrowing. You will also have no pressure to repay it which means that you could be tempted to keep it for a long time and the expensive interest will accumulate and will pay a lot for having it. Repayments are simple, in that as soon as some money goes into the account, it will automatically repay the overdraft. However, it will then mean that you will not have that money to spend, but you will have paid off some or all of the overdraft. The overdraft is always there when you need it and you will be able to draw on it by making cash withdrawals, transfers or things like this.

Credit Cards

A credit card is often issued by a bank and it will allow you to spend money without having to pay for it immediately. You will not even have to pay interest on it immediately. You will have a credit limit and will only be able to spend up to that amount and the amount that it is will be determined by the card issuer. You will be able to get the money from the card by using it instead of cash to buy things with. If you do need cash then you can make withdrawals from cash machines with the card but you will be charged interest immediately if you do this as the cards are really designed for paying for things. You will get a statement every month and it will let you know how much you will need to repay. You will have to repay a minimum amount that will cover the interest that you owe plus a little extra but you will have the choice of repaying the whole bill and paying no interest at all. The interest rates are a bit lower that an overdraft but if you repay everything you owe in time, there will be no interest to pay at all.

Short-Term Loan

A short-term loan will allow you to borrow up to £1,000 until you are next paid. It is designed especially for helping out in emergencies. Unlike the other two options you will not need to have a good credit score in order to get one though. These are designed to be something that you will be able to use quickly if you need money in a hurry. This is because they can be arranged extremely quickly and some lenders may even be able to get you the money that you need within a few hours. However, these loans can be expensive, especially if you do not repay them on time and so you will need to check when you are expected to repay and how much you need to repay so that you can make sure that you are confident you will be able to do this before you apply for the loan.

Cash Loans

Can Anyone Use Cash Loans?

Often with loans there are certain criteria for those that are allowed to use them. This means that you may wonder whether you are likely to qualify for them. There are some general rules in the UK, that you have to be over the age of 18 and be a UK resident that everyone must adhere to. However, lenders also tend to have their own rules as well, some of which can be difficult for some people to fulfil.

UK Bank Account

There are many loans which will require that you have a UK bank account. This is not a problem for most people as most of us do have one. However, there are some people who do not have an account and it really restricts what they can do. It might be the case that they cannot get one or that they are not keen on having one for some reason or another. It can be tricky to first open one as you need identification and if you have just moved into the country or do not pay any bills so have nothing with proof of address on then it can be difficult.

Pass a Credit Check

Most lenders will do a credit check and only take on borrowers with a good credit score. This means that it is often the case that there will be a certain amount of potential borrowers that will not be accepted for a loan. This is something that will mean that they will not be seen by lenders as trusted borrowers that will be able to repay the loan on time. Lenders will look at what financial problems have occurred in the past as well as how capable the person seems to be of being able to make regular payments. They could look at other things too but they will all have slightly different criteria so it can be pretty to tricky to know exactly what they are all looking for. However, if you cannot pass a credit check then you will be limited to which loans you can choose form and a cash loan might be an option for you. They lenders may not be so concerned about your credit report as long as they feel you will be capable of repaying the loan.

Have a Job

There are many lenders that will want you to have a job before they will let you have a loan. This means that anyone who is retired or unemployed will struggle to get one. Self-employed people might also struggle to get a job as well. However, with a cash loan you may be able to get one even if you do not have a job. You will need an income though and you may need to provide evidence of that income and that you will be able to afford the repayments along with everything else that you also have to pay for.

So, you may find that a cash loan could be really useful to you if you find yourself in the situation where you do not fulfil the criteria for other loans. There are less rules with this sort of loan and that can be really handy for you to know this in case you are in a situation where you need a loan and you are struggling with the rules that you have to follow for various lenders. Therefore do not count it out, as you never know if your situation might change and you might need to use one, it is just useful to know that the option is there just in case.

Cash Loans

Should I use Cash Loans to Buy Gifts?

It can sometimes be confusing wondering what loans we should use for what. If we want to purchase a certain thing. We might feel that we need a specific loan to be able to do it and wonder how we choose the right one. It is something that is well worth thinking over.

Specific Loans for Specific Things

It is worth knowing that there are some loans which are designed specifically for specific borrowing needs. This includes a mortgage which can only be used to buy a house and a student loan which can only be used for course fees and living expenses when studying for a course. However, there are many more loans that are more general and can be used for anything and this is the sort of loan that you will need if you want to buy gifts.

How Much Money do I Need?

The next thing to think about is how much money you need. You need to consider exactly how much you need for the item that you are buying. It is wise to borrow just enough and not too much. This is because if you borrow too much, it will more expensive for you as you have to pay interest on everything that you borrow. You also have to make sure that you borrow enough to cover the cost too. It can be a fine balancing act but the key thing is to try not to be tempted to borrow more than you need so that you can have a few treats, as that will be costly.

What Repayments Can I Afford?

It is always worth calculating how much you can afford to repay so that you can then check that you will be able to afford the repayments on the loan. So, note down how much money you have coming in each month and the cost of the items that you have to pay for. Then you will be able to calculate the difference between them and see what is left. This is the amount you could pay for a loan repayment but you will need to note that you may have other things to pay for that crop up unexpectedly and you might want to buy a few treats as well, so you will need to possibly leave some money for those as well.

So, whether you should use the loan to buy gifts will very much depend on your situation. It is good to think about whether it really is necessary to buy the gifts and whether there are alternatives to meet the cost of borrowing rather than the loan. Then you need to think about which loan type will be best suited to you depending on how much you want to borrow and can afford to repay. It is also wise to think about whether there are particular features that you are keen to see in a lender so that you can compare them and think about whether there are some that you prefer over others. Then you will need to think about whether there is a loan which suits you really well and whether you will be happy to use the loan to buy the gifts. Consider the additional cost of the loan and think about whether it is worth that extra cost that you are paying for it or whether you think that you should wait and save up for the gifts or perhaps not buy them or find some sort of alternative. It is well worth spending the time to think about these things so that you can ensure that you make the right decision and do not get into financial difficulties.