Cash Loans

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.

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.