We all need some quick cash from time to time but where’s the best place to get it?
If you’re having trouble making ends meet you’ve probably thought about taking out a quick cash loan to see you through. The answer to where you get that loan is less straightforward and rests on what you mean by ‘see you through’.
If you need £100 to tide you over until payday then that’s a very different matter than needing £1000 for car repairs or for an unexpected bill. Hopefully here we can help you understand your choices.
What do avoid when looking for a quick loan
While many people could borrow a small amount of money from a friend or parent and others would be able to use a credit card to tide them over we know that for many people this is simply not an option.
Before we start the most important piece of advice we can give you is to make sure that any lender you approach has a Consumer Credit License (CCL) from the Financial Conduct Authority (FCA). These lenders have an obligation to uphold certain standards and you are therefore protected against mis-selling or other unprofessional conduct. A loan-shark would be an example of someone to avoid for many reasons including the fact that they are completely unregulated by the FCA so you could find yourself in all sort of trouble.
Payday loans are also rarely advisable as the lenders charge extremely high interest rates to cover the fact that your perceived risk as a borrower is very high, especially if you have a poor credit history. If you fail to repay the loan on time you will find yourself with a debt disproportionate to the amount you borrowed.
So, what is the best way to borrow a small sum?
Our lenders will arrange loans of anything from £50 for an APR much lower than a traditional payday loan. Our loan calculator can give you an idea of the overall amount you will owe based on a 30 day loan for up to £500. If this is a realistic repayment schedule then you can go ahead and apply to get a better idea of the total costs from a range of lenders.
The alternative if the sum you need is closer to £500 is that you could spread it across a few months thereby giving yourself a bit more time to repay the debt without putting yourself under unnecessary financial pressure. It is sometimes better to give yourself a bit more time and pay a little bit more interest that to find yourself struggling to meet the repayments.
I took out a longer loan but found I could afford to pay it back faster
That’s great! Most lenders will not charge any early repayment fees and you are free to pay off the loan as soon as you are able. If you’d like to pay off a lump sum that’s also possible and, as interest in charged on a daily basis, subsequent repayments will be lower than you were previously paying.
To get an idea of the amount you can borrow and what you will need to repay you can use our loan calculator to work out the best loan for your individual circumstances.