Categories
Quick Loans

Quick Loan and Its Advantages

Nowadays, you can apply for a loan and get the funds in the shortest time possible. The presence of the internet has allowed easy and fast submission of loan applications, and banks and lending companies have people that can approve the loan even during odd hours.

Finding out that the utility company will cut off your electricity or water supply the next day if you cannot pay early in the morning can put you in a predicament, especially when you do not have the money to pay your bills. If you only know about it when you arrived from work, chances are you cannot borrow money from your friends or relatives in such made a short notice. Your option is to apply for a quick loan immediately so that you can have the funds to pay the utility company in the morning.

As the term implies, a quick loan is one that takes a short time to process and approve. You can have the funds a few hours after approval. Here are the advantages of taking a quick loan.

You Can Apply Anytime Day or Night    

Quick loans lenders do not observe regular business hours and days. You can send your application even at night, and someone will process your loan. There is no need to wait until morning to apply. Since the lending company releases the funds a few hours after you submitted your application, you can have the money in your account early in the morning. If you send in your application late in the afternoon, you can get the amount that you borrowed even it is already night time.

Quick Processing 

As long as you meet the criteria, you can expect the approval of your application after an hour. You will get a notice of the acceptance of your loan. Another hour later, you will have the cash in your bank account. The quick approval and release can save from an embarrassing situation, like opening your door early in the morning and finding a debt collector on your doorstep. You save yourself from the embarrassment of begging the collector to come back the next day and even arguing with him.

Security of Information 

Lending companies that offer quick loans do not share your personal information with others. The application process is fast, and these lenders do not check your credit rating or history. No other companies can see your account details as well.

Flexibility 

Quick loans are among the most flexible loan products in the market. You can decide how much to borrow as long as your income shows that you can afford to pay back your loan. You can choose when to pay back the loan, although the earlier you settle your debt, the less interest you will have to pay.

Nevertheless, if you are looking forward to receiving a sum of money that is enough to cover your loan, you can wait for that date to pay back the loan in full. You can also pay it in a lump sum or two instalments or more, depending on what suits your situation best.

Helps Avoid the Debt Cycle

Some people that take out a loan find it challenging to pay back their loan and provide for their daily subsistence at the same time. To survive until the next payday, they would resort to taking another loan.

With a quick loan, you pay back the money you owe when you can already afford it. If you cannot repay at the end of the month, you could pay next week or next month. As long as you understand how the interest can affect the amount that you must pay after a month or more, you could take your time until you can pay in full plus the interest.

Categories
Cash Loans

Reasons to Take Unsecured Cash Loans in the UK

Unsecured loans are small amounts that one can borrow for an emergency. One does not have to offer his property as collateral for the loan. When you badly need cash, and your friends or relatives cannot give you a loan, an unsecured loan can be a blessing. Getting the amount that you want to borrow is quick.

However, only people with a stable salary may apply to borrow money. Because the application process and release of funds use electronic means, you can access the funds in your account within 24 hours of approval. 

The amount that you can borrow on your first loan is £100 to £1500. The lender can increase the amount that you can access through unsecured loan increases on your next application as long as the lender sees that you can afford to pay back what you owe. The annual percentage rate might appear high, but if you divide it on the number of months in one year and your payment period, you would realise that the interest may not be as high as what you think. 

Here are some reasons to take an unsecured loan in the UK if you have a regular job.

Few Requirements

Applying for an unsecured loan is made easy by the few documents that you must submit when you apply. Submit proof of your income in the last six months and proof of residency in the current address you used in your application in the past months. You can use your payslip as proof of income and residence certificate to prove your current address.

No Credit Check

One of the reasons that lenders refuse your loan application is your low credit rating. Lenders can see your credit history on the website of the major credit reference bureaus in the UK, which are the Equifax, TransUnion, and Experian. When lenders conduct a hard check on your credit record, your rating will go down. By taking an unsecured loan, your credit rating and credit score will not affect your loan application and approval.

Quick Cash

As soon as you have submitted your requirements online, the lender will process your application. If everything is in order, he will release the funds to your bank account. You can then withdraw the funds as soon as you can.

You Can Use the Funds for Any Purpose

The lending company does not ask you how you are going to use the cash that you borrowed. You can spend the money on some emergency or for refurbishing your apartment or for taking an essential trip to another city or state. 

You Do Not Put Your Property at Risk

When you offer collateral for a loan, you put your property at risk. The lender can seize whatever valuable you provided to secure the loan. By taking an unsecured loan, you do not have to worry about losing your car or the house that you offered as collateral if ever you fail to pay back your loan.

The Repayment Period Is Short

Your loan term is only for 15 days. However, you may pay the interest on the date due and pay the remaining balance a week after. Once you have paid up your debt, you can apply for a new loan. The first loan amount is £100 to £1500, and the lender may increase the amount the next time that you borrow. Because of the short repayment period, you can be debt-free after a few weeks of borrowing, which will bring you peace of mind. You will feel confident that you can apply for another loan again if you need cash.

Categories
Guarantor Loans

Benefits of a Guarantor Loan

The UK is a place where taking a loan has become the most popular option for people who are experiencing financial difficulties. Many lending companies offer short term loans, quick loans, or cash loans. All these loan products have minimal qualification requirements with fast processing and release. However, the amount that one can borrow may be minimal. While they are easy to take and are useful for a small emergency, they might not be enough to meet a significant financial responsibility. 

How can you borrow a significant amount if you have lousy credit and no property to use as collateral? Taking a guarantor loan is the answer. In a guarantor loan, you must find someone to guarantee your loan. You can ask your close friend or a close relative to act as guarantor. He would assure the lending company that if ever you cannot pay back your debt, he will take the responsibility of paying for it. Taking a guarantor loan also has its benefits as follows:

 You Can Borrow Up to £10,000 

When you take a quick loan, the amount that you can borrow will only be from £300 £1000. If you need more than £1000, you might have to apply to another lending company, or you might have to take another loan to have the amount of money that you need.

With a guarantor loan, you can borrow up to £10,000, which could easily cover for your emergency. Lenders feel confident that you can pay back your loan, and if you cannot, your guarantor will help. It is crucial to choose a guarantor with a good credit rating and with the financial capability to repay your debt if ever something happens to you. With the right guarantor, you can expect fast and easy processing and release of your loan.

Your Credit Score Is Not an Issue 

Most lenders avoid giving loans to people with bad credit because they present a significant risk. Nevertheless, a guarantor loan has someone to pass on the debt in case the borrower cannot manage to repay his debt. Guarantors understand their responsibility, and they seldom would back up someone they do not know. When you have a guarantor, your credit history would not matter anymore when you borrow money.

Low- Interest Rate

Guarantor loans usually cost less than other types of quick loans. Because lenders have the assurance that the guarantor is there to cover for the debt, lending institutions charge an affordable interest rate.

Flexible Repayment Terms

Unlike other quick loans that are payable within three to six months, you can repay your guarantor loans within 60 months or five years from the day you took the loan. Spreading the overall debt over 60 months results in lower monthly amortisation. Since the interest rate is low, the total cost of the loan would still be lower. Nevertheless, if you want to stop worrying about your debt, you can pay it earlier than the agreed payment term.

Quick Transfer of Funds  

Approval of a guarantor loan application may only take a few hours to one day. Applicants only need a few documents to submit, and the lenders may take a soft check on the applicant’s credit history. The lender would be looking for cases that show that the borrower can pay back the loan. Once this requirement is present, lenders would be ready to approve the loan.

Helps Build Credit 

Once you have taken a guarantor loan, you can start building your credit by making prompt payments throughout the repayment period. You can indeed borrow money without a high credit score, but being able to apply for a loan that requires a credit score is something that will open a lot of doors for you. 

Categories
Bad Credit

3 Top Quick Loans for People with Poor Credit

Having a low credit rating may hamper your chances of getting a loan, especially from banks and other high street lenders. Credit rating refers to a person’s capacity to fulfil his financial obligations or pay back a debt or loan. How do lenders know your credit history or rating?

In the UK, three major credit reference bureaus collect data or information regarding the habits of people when it comes to credit or borrowing. A lender that wants to check your credit rating may visit the website of TransUnion, Equifax, or Experian. You may also do this if you want to know if you will qualify for a specific loan. However, having a bad credit rating does not mean that you would never be able to borrow money for your emergency need.

Many lenders in the UK specialise in extending credit to people that banks and other big financial institutions would consider high risk.

Here are the three top quick loans that you can take if you have poor credit.

Logbook Loans  

In the UK, a car or any vehicle is not only a mode of transport; it can also become handy when you are in dire and immediate need of cash because you can take a logbook loan with your vehicle as collateral. Because you have provided security for your loan, the lender will not check your credit rating anymore.

A logbook loan would lend you £500 to £50,000, depending on the value of your car. When you apply for a logbook loan, the lender will ask you to submit the logbook or registration documents of your vehicle.

The lender will ask you to sign an agreement and a bill of sale, which states that the lender is the temporary owner of your car until you have paid up your loan. Failure to settle your debt would allow the lender to sell your vehicle as repayment of your loan. Nevertheless, when you have paid your loan, the lender will return the registration paper of your car.

Some logbook loans take two to three days to process. However, you can check which lending companies offer a quick loan, which means that you can have the funds a few hours after the approval of your application.

Text Loan 

A text loan is a new loan product wherein the borrower and lender communicate through text messages. Borrowers find the process very convenient. All that one need is a mobile phone or tablet. Borrowers send the application form via text messages. The lender will send a text message when he approves the application and releases the funds to the borrower’s bank account. Borrowers repay the loan through accredited payment centres or the borrower’s bank.

The lending company usually releases the funds within 24 hours upon approval. You can borrow from £1000 to £10, 000. While taking a text message loan could be quick and easy, it is also quite expensive.

Guarantor Loan

Another way of borrowing money despite lousy credit is taking a guarantor loan. You can borrow from £1000 to £10, 000 regardless of your credit rating. To avail of this loan product, you will need a second person to act as your guarantor. A friend or relative that is willing to help you find a solution to your financial woes can be an excellent choice. A guarantor must have a good credit rating a means of paying up your debt if ever you default.

To make sure that the loan will not cause any damage to your relationship, always pay back your loan promptly until you have made the last payment. Letting your guarantor pay back your debt could cause a rift in your relationship.

Categories
Business Loans

The Risks and Advantages of Applying For a Government-guaranteed Business Loan

An often-encountered measure taken by governments around the world, during a financial crisis, is to offer state-guaranteed bank loans. This is usually meant to help business owners get the financing required to continue functioning even if their profit has been substantially reduced. However, the government also guarantees loans that are designed to help a start-up’s development.

Most individuals often consider these government-guaranteed business loans to be the best go-to tool during periods of financial instability. However, this is not always the case. As useful as they may seem – and be – these loans can sometimes be considerably more dangerous than regular ones because the government often requires more financial information and imposes stricter rules.

This having been said, government-guaranteed loans should not be avoided, especially in exceptional cases such as during the Covind-19 pandemic. The stricter measures imposed by the guarantor do not make the loan dangerous in itself. However, they do mean that the borrower must take extra precautions and make an informed decision.

What Is a Government-guaranteed Business Loan?

Government-guaranteed business loans are essentially secured loans that business owners can apply for and are guaranteed entirely by the government. While this does mean that all the collateral is offered by the government, to the lender, there are still requirements that borrowers must meet.

As with any other type of loan, lenders such as banks will still perform credit checks and calculate credit ratings to determine what terms and conditions they are willing to offer. Furthermore, the government, as a guarantor, may also perform financial checks to establish if a borrower is eligible or not.

Unlike most secured loans, the ones that have the state as guarantor tend to have very strict restrictions in terms of what can be done with the money. Depending on the type of the financing project, some loans may be designed to be used as running capital while others may only enable businesses to pay wages and taxes using them.

For many, state-guaranteed business loans are a godsend that helps them go through rough patches or times of considerable financial instability. However, many take them for granted and use the money inefficiently. Only to find out that these loans are sometimes more dangerous than regular secured loans.

What Are the Pros?

  • No Collateral Needed – The main purpose of these loans is to help companies that would not be able to put up the collateral needed to secure them. As a result, business owners are not required to offer any type of collateral. This aspect is handled entirely by the government;
  • Access to Large Amounts of Money – Secured loans are traditionally larger than unsecured ones, and those secured by the state can give businesses access to very large amounts of money. The size of the loans is usually either determined by the design of the program or potential and current financial situation of the company;
  • Low or No Interest Rates – State-secured loans usually have very low-interest rates attached to them, if any. This is usually because the state is considered to have the best possible credit rating. In other words, lenders are sure that if the borrower is unable to repay the money, they will be able to recover it from the guarantor. However, most of these loans do not have any interest rate attached, as they are offered as a means to restart the economy;

What Are the Cons?

  • Strict Restrictions – Most state-secured loans are designed for very specific purposes, depending on the overall needs of companies maybe during a financial crisis. Some can only be used to pay wages, taxes, and other vital expenses, while others can be used to run capital or expand a business. Restriction-free state-secured loans are rarely offered, and only in extreme situations;
  • Strict Repayment Schedule – These loans must always be repaid on time and to the last penny. If a borrower skips a repayment term or ceases to make payments altogether, both the lender and the guarantor (the state, in this case) send liquidators are dispatched immediately to recover as much of the money as possible;