Are Instalment Loans the Best Short-Term loan?

There are quite a few different types of short-term loan. It can be quite confusing because they can go by different names. It is good to have an understanding of the different types so that you can make a choice if you feel that you need one. There are some fundamental differences and so you need to know what these are so that you can make the right choice.

You might see short-term loans also referred to as cash loans, online loans, no credit check loans, bad credit loans and all sorts of names. However, there are really only three main types of short-term loan and these are payday loans, instalment loans and guarantor loans. They all have one main thing in common. This is that they are available to most people, including those that has a bad credit rating and cannot get any other type of loan.

Guarantor loans– a guarantor loan allows someone with a bad credit rating to borrow thousands of pounds. However, in order to do so they have to find someone who is willing to cover any repayments they miss who will act as their guarantor. It is a good way to borrow a significant sum of money if you need it and cannot get it elsewhere. However, you will need to make sure that you can find a guarantor who not only has a good credit rating but is willing to help you out like this.

Payday loans – a payday lender such as will also lend money to those with a poor credit rating but they are designed for emergency borrowing. This means that loans can be arranged very quickly. In fact, they will be able to get the money to the borrower within a few hours in some cases. This does vary between lenders though but it is unlikely to take more than a few days to get money this way. The lenders tend to lend between £100 and £1000. Payday loans are repaid on your next payday. This means that they are very short and therefore you are not in debt for long. You will have to repay in a lump sum though and therefore come up with all of the money to cover the loan and the fees and interest all in one go.

Instalment loans – with instalment loans you will not have to repay all in one go. You still get the advantages of being able to get a loan quickly and to borrow even with a poor credit record, but you do not have to repay it with a lump sum. You can repay in instalments, which can make it easier. This is because you can spread the cost and that will make it more manageable. So if you take out a loan for £1000, for example, you will not have to find the money to repay it all at once but you will be able to repay it over a series of months.

So as you can see, there are quite a few difference between the different types of short term loans. You may think that there is a certain one which stands out more than the others. However, it is best not to really judge them like this. This is because you will find that whether one is significantly better than the other will depend on the situation you happen to be in. It might be that you need a large sum of money and then the guarantor loan could be the answer. However, if you need a smaller amount but know that you will be able to repay it quickly, then the payday loan could work for you. The instalment loan will be better for those that cannot afford to repay a large lump sum of money.

It is good to also be aware that there are lots of different lenders offering these different loans. They will each vary a bit as well. This means that you will find that once you do choose a particular loan type that you like. Then you will need to compare the different lenders. They may vary in price, but you may also find other differences as well. It is a good idea to get a good overview of each one, so that you can make sure that you are using the loan and the lender that suits you the best. It can take a bit of time to find out but it will mean that you will end up getting a loan that will give you the best possible value for money. You will also not have any regrets with regards to the loan that you choose and this is important as well. It can be really annoying if you find a better loan and then wish that you had gone with that one instead. Therefore, make sure that you do take the time to do the research and then you can be really pleased with the decision that you have made.

Will Cash Loans get me Money Quickly?

If you need money in a hurry then you may want to look for a loan that is really quick. It can take a long time to organise some types of borrowing and you may find that by the time you have the money from these, it is actually too late. Therefore, it can be a good idea to make sure that you choose a loan that you know you will get money quickly from. There are some loans that have a reputation for being quick and one of these is a cash loan. But is it really as quick as you might think?

How quick are cash loans?

Cash loans were set up to help people with a poor credit record get money quickly. This means that the lenders know that their borrowers will need them to work very fast. However, how fast is fast?

Cash lenders will vary in how much time they take to process applications but normally they are relatively quick. For example, they might take a few days but they often will process applications within a few hours. This means that the money can be in the borrower’s bank account within a few hours. This difference, between a few days and a few hours could be quite significant. This means that it is important for a borrower who needs money within hours should ensure they check with the lender that this is possible before they apply.

Some cash lenders will be able to lend money outside of office hours. Some will only work normal banking hours but others will be staffed all of the time. This can also be significant in how long it takes to get the money as if you apply late in a day or on a Friday evening, you may have to wait longer for the money compared to applying in working hours.

It is also important to realise that the speed may be partly dependent on the applicant. You will need to make sure that you complete the application properly and that you send all the relevant documents with it so that it can be properly evaluated. If you do not do this, then it will be rejected and you will have to send more information. This will mean that you will delay the whole process.

How do they compare with other loans?

It is often the case that many loans will take a lot longer than cash loans. Most loans need a credit check and this could take a while. Then banks might take some time to check all of the paperwork as well and they could be a delay between them approving the loan and getting the money into your bank account. This will vary a lot though and so you will have to check. If you already have an account with the bank, this will speed up the process as they will not have to do any identity checking.

If you have a current account, then you could find that you will be able to get an overdraft using it. This will not need arranging and so you will be able to get the money right away. You can usually draw on it using a cheque, standing order, direct debit, transfer or by drawing cash. It can be good, but you will be charged around 40% interest as soon as you get the money. You will also not be forced to repay it but it will automatically be paid off as money comes into the account. This can be annoying as it can cost you a lot of money or you can end up using money to repay it that you had earmarked for other things.

A credit card is also a good way of getting money quickly, if you already have one arranged. They will allow you to borrow money quickly, but just using them to buy things. You will be charged interest when you get a statement if you do not repay them by the required day which is usually 4-6 weeks after you buy the item. However, some people do not accept credit cards as payments and if you need cash and draw it form an ATM using a credit card you will be charged interest immediately and it can be very expensive.

Are they a good idea?

So there a few ways that you can get money really quickly and cash loans are one of them. If you have a poor credit record then it is likely you will not have a credit card and you may even not have access to an account with an overdraft facility. This therefore means that there is a chance that they could be your only option. You may find that they are the best option anyway when you compare the different types of loan you have available to you. However, whether they are a good idea will depend very much on whether you are happy with the cost and confident that you will be able to repay it.