There are many different options available when you need to get a cash loan. Primarily, a cash loan can be understood as a short term loan covering anything from £50 up to a few thousand pounds; this is distinct from larger personal loans issued by banks and credit agencies for mortgages and other large payments. Cash loans tend to be unsecured, and offered with the expectation of a short repayment period. For example, cash loans in essex can be found through pawnbrokers, who can offer flexible deals on borrowing amounts and repayment schedules; you can also find deals of varying quality from payday loan companies.
Cash loans often represent ways of covering any unexpected shortfall or emergency that can’t be dealt with in time by a long term loan – the waiting times for cash loans can be very short, with many providers offering them online. For example, payday loans are issued as a short term cash advance against your next wage slip, with the expectation that you’ll be able to make a repayment within a short period of time.
The criteria for applying for a payday loan are usually simple – most companies will just require you to be over 18, in full time employment, and the owner of a UK bank account; applications can be made online, and cash released the same day. However, to facilitate the speed of these loans, payday lenders charge very high APR, which can run to over 1000 per cent, and consequently represent a risk unless you know that you can safely make your payments.
Another, arguably safer option for getting a cash loan is to use a local pawnbrokers; these organisations offer deals where you can exchange valuable items like jewellery for cash – after a certain amount of time, items are either sold to cover the loan, with interest added, or bought back by yourself. Pawnbrokers also, however, provide cash loans on a similar basis to payday loans, but with longer repayment schedules and tighter security checks.
For example, if you were looking for cash loans in essex, you could potentially borrow £100 and repay £160 through six monthly payments of £26.67. Security checks at pawnbrokers can involve showing wage slips, different forms of ID, and utility bills – unlike many payday loan companies, pawnbrokers will often require you to visit them in person, thus reducing the risk of fraud.
Some other possible ways to receive a cash loan involve withdrawing cash against a credit card, which will contribute to your overall debt for the month, and may end up costing you significant amounts in one-off charges. Alternatively, you may be able to borrow cash from friends or family with an agreement over interest – this isn’t usually a recommended option, though, if you want to avoid personal complications.
Cash loans can be risky as a result of their short term repayment schedules and high interest rates. For this reason, you should always be as sure as you can about your ability to meet repayments and interest charges, while making sure that you compare the terms and conditions offered by different lenders. Payday loans can be particularly risky if you default on your payments, with cash loans from pawnbrokers often being a safer option due to their generally longer repayment schedules and lower interest rates. With any type of cash loan, though, make sure that you have a clear reason for borrowing the money, and a realistic expectation of what you have to repay.