Cash advance loans have really blown up in popularity throughout the UK for a number of reasons. If you need money fast, it is important that you take enough time to look into these loans because of how beneficial they can be for so many people. There are quite a few misconceptions about cash advance loans, which are also known as payday loans. The more you learn about this particular borrowing option, the more likely you will be to make a good final decision for yourself.
What Exactly is a Cash Advance Loan?A cash advance loan is pretty much what it sounds like—a loan that that you take out as a sort of advance on your next pay cheque. Most of the time these loans must be paid back within a period of a couple weeks, because a majority of people get paid twice a month. Cash advance loans are traditionally acquired from private lenders as opposed to banks or credit unions. There is really nothing complicated about cash advance loans, as you will soon discover from this article.
The Convenience of Cash Advance LoansOne of the reasons that millions of people in the UK have gotten cash advance loans is because they are incredibly convenient on numerous levels. The fact that you can get these loans entirely through the internet will save you a lot of time and effort. You no longer have to worry about physically going down to a bank and filling out pages upon pages of paperwork. The process of getting an online cash advance loan starts with filling out a basic application on the lender’s official website. This application will ask you quite a few questions that will be used by the lender to determine your liability as a borrower. You shouldn’t have to spend more than 15-20 minutes on one of these applications, though it varies depending on the lender.
Borrowing AmountsWhile the average borrowing amount for a cash advance or payday loan is around £250, you could be able to borrow up to £1,500. This is yet another reason why so many people are turning to these loans in the UK. There aren’t many other borrowing options available that will provide you with such a substantial amount of money so quickly. This can be especially useful if you need to pay for a not-so-cheap emergency expense like a major car repair.
Fast Cash NowPerhaps the best reason to apply for an online cash advance loan is that doing so can get you the funds you require very quickly. If you are stuck in a bad financial situation where you absolutely cannot wait for funds, this is an option that is definitely worth considering. When you apply for a cash advance loan, you will likely hear back from the lender within a few hours as to whether or not you have been approved. If you do manage to get approved for one of these loans, you can expect to receive payment before the end of the day (depending on what time you apply). It’s always better to apply early on in the day so you can increase your chances of receiving funds sooner rather than later.
Very Few RequirementsThere aren’t a whole lot of requirements for being approved for a cash advance loan, and the ones that are in place are fairly basic. Some of the bare minimum requirements for getting a cash advance loan include:
- Citizenship: You must be a legal UK citizen to be approved, and show documentation to prove it.
- Income: You will also need to demonstrate that you make enough money to return your loan on time.
- Age: You won’t be able to get a cash advance loan if you are 18 years of age or under.
- Checking account: A vast majority of lenders will require you to have an active checking account at a bank or credit union to qualify for a cash advance loan.
Bad or No Credit Won’t Necessary Count Against YouAn increasing number of private lenders who give out cash advance loans aren’t even factoring in their applicants’ credit, which is a great thing for a lot of people. If you have found it difficult to get the loans you have needed in the past because of your credit, you might want to turn to this option. Many people with subpar credit scores have managed to get cash advance loans, so your bad credit won’t necessarily count as a strike against you with these lenders.
Short TermsSome people might consider the short terms of cash advance loans to be a bad thing, but they really aren’t when you consider how much less you will be spending. A short term means that you won’t have to deal with spending a ton of extra money on interest alone. The main reason that terms for cash advance loans are so short is because most lenders don’t give out more than £1,500. Sometimes a lender will give someone a month or so to pay back the loan if it’s a higher amount.
Is a Cash Advance Loan Right for You?There are numerous things that you will need to consider before making the decision to apply for a cash advance loan, including how badly you really need the money. You will have to pay interest on the money you borrow, so you shouldn’t take out a cash advance loan unless you need it. It’s also important to make absolutely sure that you can repay the loan on time. If you are late paying back your loan, you will be charged some major additional late fees by the lender.