09 Apr 2019 / by Jon Edward / in Cards and Loans, Credit Rating / Credit Score / Credit History
The 3 things to avoid when looking for a quick cash loan!
Emergencies can quickly lead to bad decisions when applying for a loan; but please don’t leave your common sense at the door 🤔.
With mainstream lenders shunning bad credit borrowers, specialist firms have stepped up to fill the void. However, many seek to exploit the situation by charging sky high-interest rates.
We spotlight on the 3-things to try and avoid when looking for a fast cash loan.
1) Letting desperation dictate your decision
Desperate times do not always call for desperate measures!
The pressure caused by mounting bills can often lead people into making quick decisions that lead to long term consequences.
Just because you are desperate for cash does not mean that you should rush in and take the first option which becomes available to you; this will inevitably lead to poor decisions.
Finding a suitable option has never been easier and the great news is that much of the hard work is done for you.
Websites such as our own, allow you to work out how much money you can afford to borrow and then provide a simple application form which will submit a single application to a number of the UK’s most trusted lenders.
With quotes shown online within 30minutes minutes, there is simply no longer a reasonable excuse for not shopping around.
2) Try to avoid high-cost short term loans
Some payday and other short-term loans can have very high-interest rates, si if you are not very careful can lead to a debt spiral!
Whilst payday lending has come along a long way in the UK in the last couple of years, there are still interest rates as high as 1,500% APR.
As required by the Financial Conduct Authority, UK payday companies now have to ensure their lending is ‘responsible’, so that they only lend to customers who can prove both an income and that they can comfortably afford to pay the loan back.
So if you are considering a loan like this, this should only be seen as a short-term solution to an emergency. This will help to keep your costs in check, though if you extend the loan this is where problems start.
3. Do not overlook any option
One of the best options for a short term boost is often one of the last options that we think of. Do not be afraid to ask family and friends for some financial assistance if you believe they may be in a position to help.
Pride or an unwillingness to put people on the spot can be very powerful reasons for not choosing this option but you may be surprised at how many family and close friends would like to help if given the chance.
The agreement can be as formal or informal as both sides wish and the chances are it will certainly be the cheapest option available to you.
If you would like to weigh up the pros and cons of borrowing from family and friends, the Money Advice Service has drawn up a very helpful guide titled – Should you borrow from family or friends?
See the following great article from moneyadviceservice.org.uk: Should you borrow from family or friends?
Do you know your Credit Score?
To make sure you’re in the best position to get an affordable loan (should the need arise), always make sure that you keep up to date with the current state of your rating.
By visiting the Checkmyfile* website, you will be able to access the UK’s only multi-agency report which will allow you to view all the information you need to highlight the loan options which will be available to you.
*Free for 30 days, then for just £14.99 a month after, which you can cancel online at any time.
Happily married with two wonderful girls. Love cycling, curry, and when I get the chance - loud music! See Jon's Profile Page