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.