Quick Cash Loans for When There Needed

There can always be a time when someone needs money and this can be down to often a high number of different things. There can be some people who may need a large amount of money as they are looking to make some form of one off significant purchase of some kind when possible. This could possibly be for a new car perhaps or maybe for home improvements to name just a couple of things. There can then often be in contrast others who may need just a small amount of money to possibly just pay a bill perhaps or maybe they need some help financially to make their wages last just until they are next paid again from their work employer. Now regardless of what anyone needs any amount of money for, if they have this saved away they can then often look to use it as required to pay for whatever they need. Some people could even have enough put to one side to pay for their requirement outright or at least they can put money towards it. Turning to savings is not always an option though and if this is then the case the chances are people will have to borrow it. Quick cash loans for example are just one of many different borrowing options.

When most people are looking to borrow money, I think it will be fair to say that most of the times here people will often approach friends and family to try to get the money obtained that way. This will be much more common for people if only a small amount of money is then needed. Quick cash loans from friends and family is always going to be popular for any loan size as any amount borrowed can be repaid back interest free meaning people only pay back exactly what they borrow. That will not be the case through any financial lenders out there. People this way can often borrow money quickly and can then just repay back the debt as soon as they have the required funds available to do so.

I always feel that not only borrowing money interest free will be a great option when possible but also having access to cash really quickly must also go down as a great plus to any borrowing. For most people looking to borrow money, the chances are they will want the money quickly to have at their disposal as quickly as possible. Here as the name suggest quick cash loans can certainly enable this to happen. People apply for these online or sometimes over the phone in a quick and simple process that should just take minutes to complete. If that same application is then approved from the lender that person can often expect their funds paid into a chosen bank account that very same day. In some borrowing cases once approved they can be funded within just a matter of quick minutes. This funding duration will of course depend on the lender a person has chosen and what they can offer to their customers.

Installment Loans Compared to Other Loans

When considering your short term borrowing options there are generally two different choices which are available. These are commonly known as the installment loans and then the payday loans. The reality is both types of loans are one in the same; they are both ‘short term, high cost’ borrowing resources. Both exist online and can be applied for via any internet enabled device. These loans exist to serve the needs of consumers looking for a small scale borrowing choice. For many years short term loans only existed in the payday loans package and it is only in recent years that the product offering has been extended to include that of installment loans. The launch of the installment loans is a direct result of the Financial Conduct Authority and their introduction as the market regulator in 2014. So what are the key differences between the payday loan product and installment loans and why are installment loans increasingly becoming the preferred choice amongst consumers. Today let’s look at these two short term loan options and how they offer different repayment options to consumers within the same market.

The payday loan as mentioned above was the original product offered by short term loan lenders. The payday loan allowed a very simple method of borrowing a small sum of money and was the first of its kind in terms of a completely online based application and approval process. Consumers could submit a request for borrowing online and then be potentially granted access to a loan ranging from £100.00 to £300.00 in value. Like all loans there were exceptions, in terms of the amount available for borrowing, meaning some lenders would consider higher loan values up to as much as £1000.00. If successful in their application, the customer would then agree to repay the entire loan value as well as the interest charged by the lender as a one-off repayment come their next employment pay date. Depending on the original amount borrowed, the amount due on the customer’s next employment pay date could result in a relatively large financial commitment.

Installment loans arrived in 2014 and were introduced as an alternative repayment option to that of the lump sum style of repayment offered by the payday loan. The FCA were keen to ensure consumers had choice and flexibility when it came to their short term loan needs and as such wanted to ensure customers were treated fairly. Installment loans give customers the ability to split and spread the cost of their loan, over a number of pre-agreed months. This means for customers unable to afford the lump sum style of repayment offered by payday loans, installment loans could be able to help. Depending on the lender and the specifics of their service, there is lots of choice available when it comes to installment loans. This could mean 2 monthly repayments over as many as 12 for example. This truly gives the ability to select a repayment amount which is affordable, realistic and also sensible to the individual circumstances of the applicant.

Applying for a Quick Loan

If someone is ever looking to borrow money from the financial place and they have then submitted any form of financial application they may wish to then know what happens next? They may be interested as to what happens from when they first hit submit on an application to the moment when they then get their final decision. It will not matter whether someone has applied for a short term quick loan or an installment loan over a longer period of time, credit cards or even mail orders the application stages on the process can often be very similar. Below are three common stages that will be on any financial application completed by absolutely anyone.

An early stage on any financial application will be the section where a customer has to input details regarding their personal information. They can be questioned things such as their name, date of birth, address, contact numbers including each of home, work and mobile numbers as well as their employers address. It is common also that both bank and card information will also be required. Any lender will then have to validate the information before they can then decide on whether to lend to the applicant. There can be some situations where documentation is needed to support an application and this must then be supplied by a person to get their final quick loan decision. A couple of examples here would be a driver’s license or a bank statement etc.

Any lender on a quick loan application or other borrowing will have to credit check any person who is applying for the finance. The lenders have to calculate the chances of a person repaying the debt should they be approved for it. It is common that when a lender reviews an application and they do a credit search they can often see how any applicant has fared with their other debts in the past and if they are then satisfied that they believe someone will repay the debts then that person is more likely to be approved. Someone who has good credit and a high credit score as a result will be far more likely to get approved for finance than someone with bad credit. Some lenders including payday lenders can offer people the chance to get approved even if they have bad credit so that is certainly something to bear in mind.

The final stage in every application is the final decision from the lender. This is when someone finds out whether or not they have been approved for the finance or whether they have had their application declined. If accepted then they will need to then liaise with the lender and see how long it will be until they get their loan funded in their chosen bank account. If on the other hand a person has been declined for their quick loan then they can then should they wish to move on to another lender and try to get approved for the finance that way. As shown there can certainly be a number of different things that go into deciding applications and once a lender has reached the outcome it is unlikely to change and they do not have the give their reasons why ever.

What Online Lenders Offer?

Online lenders have been known by quite a few different names over the years, whether that be as payday loans, short term loans and more recently installment loans. All of these names actually relate to the same type of borrowing and that’s one of the ‘short term, high cost’ variety. Online loans have very much become an established borrowing choice amongst consumers, with many millions of us using them in the decade or so they have been available. What some of us will not be aware of is the fact that online loans have recently undergone some very big changes and as such are a much more varied and flexible borrowing option. Given that for many years several big names seemingly dominated the market, consumers understandably came to understand that this market housed only one very specific type of borrowing and for many years; this was in fact true. But in recent years and under the guidance of new regulators, the online loans and their lenders who offer them have been transformed.

Online Lender

Whereas nowadays the majority of lenders within the online loans market offer flexible choices for borrowing, this was not always the case. In the early year’s lenders focused their efforts on lending a resource which meant the loan was repaid over a short period of time. This time period was reflective of the applicants next employment pay date which meant that loan terms ranged from a week to a month but usually no longer. This single repayment style of borrowing quickly became known as the payday loan and for many years it was the only product which was readily available within this particular sector. These loans allowed customers the opportunity to borrow anything between £100.00 and £500.00 normally and if successful, the customer would have to repay the entire loan amount and the interest charged by the lender on the agreed repayment date; being their pay date. Over the years it did however become increasingly clear that the payday loan style of borrowing was not, in a general sense, flexible enough to support the realistic needs of the consumers using them. It is fundamentally this fact alone which led the market to transform and subsequently exist as it does in today’s form.

Under new regulators and after several years research it became obvious that online loans needed to change and to do so quickly in order to improve the resources available to consumers and in doing so, improve the general opinion and feeling which surrounded this market. The end result is a market which is now built entirely around the needs of consumers. So in real terms this means more flexible borrowing options and more customer friendly lenders. The loans on offer today are typically based on installment borrowing which means consumers do not have to borrow and agree to repay in a lump sum if they do not wish to do so. The new regulator, the Financial Conduct Authority has guided its lenders to better practices throughout the application process and furthermore the relationship which then unfolds between them and their customers. With the addition of installment loans, which allow customers to borrow over a range of different months, as well as control in terms of interest which can be charged, the Financial Conduct Authority have helped restore trust and order to the online loans market.

As a consumer looking to borrow from this market then, what changes can we expect to see? One of the clear changes is the manner in which borrowing is offered, which as discussed above is now generally speaking via installments. The application process has changed too, with lenders being more aware and therefore focused on considering the affordability of their applicants. Budget information must now be provided as part of the application and as potential customers we have a responsibility to provide this in an accurate and honest manner. The lenders later use this information to make sensible and information driven lending decisions. The speed of approval is no longer promoted as a key selling point of such loans, to further educate customers that lending decisions are made based on facts not on being the quickest. As well as all these things lenders are going to greater lengths to keep their customers fully informed and therefore up to date as their application and subsequent loan progresses. Information is being better displayed, is clearer and as such, makes the process of applying much less confusing. As a new chapter now starts for online loans, it will be interesting to see where they go next.