In an age where everything is online, it’s no surprise that one of the fastest ways to get a small loan is also online.
Usually, if you only need a small amount of cash, banks won’t be much help – they only offer large loans to people with a strong credit history. But there are other types of lenders who can offer you that helping hand in times of financial difficulty. One of these types of lenders is a payday lender. They offer small amounts of money over a short period of time – typically to help you bridge the gap to your next payday (hence the term payday loan!), and you don’t even need a shiny credit record to get one.
There are other types of small loans, such as loans from friends and family for example, but it’s not always easy to ask your nearest and dearest for financial aid, especially if you know they could be struggling too. Sometimes, a formal agreement with a trusted lender can take out the awkwardness of asking for cash – especially if you use an online lender.
Online lenders use online application forms and automated creditworthiness assessments so you can fill out the loan application form quickly and receive the lending decision asap! But have no fear; there are real people working for online lenders too so if you do have any questions, you can always email or call in and speak to a human directly. You can usually appeal an automated loan decision as well, if you feel the decision was wrong or you have other information that might help the lender make a more informed lending decision about your application.
Because sending things over the internet is almost instant, if your loan application is approved, you’re likely to get your loan transferred to your nominated bank account in less than 15 minutes. That means, even if you need a loan fast, an online loan is still likely to be the quickest way to get access to the cash you need. Lenders might say that their transfer times can be as quick as 15 minutes, however it’s not unusual for the loan to take up to two hours to reach your bank account, depending on what payment service your bank uses, but if you haven’t received your loan within the specified time frame, it’s a good idea to contact your lender just in case.
So, maybe you need a small loan, and as we’ve already established, the quickest way to get a small cash loan is likely to be through an online payday lender, but before you even start to apply, you should consider all the factors that contribute to your reasons for needing the cash and your financial circumstances in the future.
If it’s an emergency expense that’s just popped up and is unavoidable, it’s almost definite that you haven’t budgeted for it, and these are the types of payments that payday loans were designed for. If it’s not an urgent cash flow need, and it’s something that could wait until you next get paid, then it’s almost definitely better to wait. There is no point borrowing money for no reason, particularly as you’ll have to pay interest. It’s also important to understand that missing your loan repayments can cause you serious money problems and may make credit harder to obtain in the future, so it needs to be a very carefully considered decision.
Another thing to think about is which creditor you are applying with. It’s easy to just pick the first link on Google, but that isn’t always going to be the cheapest option – or the best one for your financial situation. Using a short term loan comparison site, like Clear and Fair, will offer you a range of creditors that you can choose from, and you’ll always know which creditor offers the cheapest loan because our search results are ranked based on the lowest amount payable.
Making an application doesn’t guarantee you’ll get approved, and it’s good to understand that lenders have to make responsible lending decisions when it comes to your application. However, there are things you can do to improve you credit score which will increase your chances of approval for any kind of credit, and if in doubt, we’ve got some great easy saving tips so that you can save up a little cash for when money times are tough.
All you need to know about short term loans
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