Quick Loans

Quick Loans for Borrowers Needing Fast Cash

A spending crisis can strike any one of us at any time. If we’re lucky there’s enough money set aside in our savings to cover the emergency. We can take care of the problem and be on about our business. But for many people a spending emergency is a very real crisis. When there’s not enough ready cash around to cover an unexpected expense you can quickly find yourself up against it.

In such a situation a quick cash loan is often the answer. However, if your credit history is less than perfect securing that loan may seem a challenge. Fortunately, there are quick loan options for people who need it most. These short-term loan products can provide the instant funding consumers need to cover most spending emergencies.

What Can You Do With Your Quick Loan?

Quick loans are a type of alternative lending product designed to fit the needs of borrowers who simply need money fast. Like payday loans they provide a much needed influx of cash to cover one or more unexpected expenses. The loans help to give borrowers the financial flexibility they need to deal with life’s little surprises.

The funds you receive from a quick loan can be used to cover a wide variety of expenses, including:

• Utility bills
• Medical fees
• Moving costs
• Home repairs
• Car repairs
• School fees
• Rent/mortgage payments

How much would you like to borrow?

£

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Representative Example: Rates from 48.1% APR to 1721% APR. The minimum Loan Term is 1 month. The maximum Loan Term is 36 months. Representative Example: £1,000 borrowed for 18 months. Monthly Repayment of £89.22. The total amount repayable is £1605.96. Interest amounts to £605.96, an annual interest rate of 59.97% (fixed). Representative APR: 79.5% (variable).

Are Quick Loans the Same as Payday Loans?

Quick loans are similar to payday loans in that they provide instant funding for borrowers facing a sudden financial shortfall. They provide a quick influx of cash to get borrowers back on track. In this way, they help give consumers greater financial flexibility than they might otherwise have if forced to depend only on their savings.

Like other quick and easy lending products quick loans, particularly for bad credit borrowers feature relatively brief repayment windows. Customers typically repay their loans over the course of a few months. That repayment also includes the interest.

The benefits of choosing a quick loan are twofold. First, and foremost, it allows you to access the cash you need in an emergency. Often on the same day you get accepted. Second, and just as important, it provides an opportunity to improve your credit rating. Managing and faithfully paying off even a small loan will add points to your credit score giving you more borrowing power in the future.

How Does Having Bad Credit Impact a Quick Loan?

When you are applying for any loan your credit score is your most valuable asset. It is a record of your past financial performance and it is the first thing most lenders will look at when considering your loan application. The lender wants to know if you are a good risk for a loan or any credit in general. The better your rating the more likely it is you will receive the loan you desire. Or at least for the amount you requested rather than a lower amount.

Over a lifetime a variety of factors impact your credit score. Credit card use, payment histories, unsettled debts, and loan defaults all factor into your rating. Good financial behaviour improves your credit rating while deficient behaviour subtracts points from your score.

The most critical factors credit reporting agencies consider when determining someone’s credit score include:

• Established Credit Use – They say ‘it takes credit to build credit’. This is the heart of the credit rating system. Lenders need to know how effectively you’ve managed credit in the past in order to determine your potential risk as a customer. Using credit responsibly (paying credit card bills on time, loans on schedule, etc) lies at the heart of a strong credit score.

This is often a stumbling block for younger borrowers who have yet to amass much in the way of a credit history. The lack of a past, as it were, can count against them.

• Payment History – Credit reporting agencies review your past payment history including credit cards, past loans and even utility bills. Every recurring bill payment contributes to your credit history. Some payments carry more weight than others but they are help to build your credit profile. Late payments, missed payments, and unpaid bills are counted as strikes against you causing your score to tumble.
• Loan Defaults – Defaulting on a loan can do great damage to your credit rating regardless of the size of that loan. If you have any defaults in your past it will take time and hard work to rehabilitate your credit score.
• Bankruptcies – Bankruptcies and County Court Judgements will cause your credit rating to plummet. However, even a borrower with bankruptcy in the past can still improve their credit rating if they learn to manage their finances sensibly.

What Happens When You Apply for a Quick Loan

Every lender must consider the customer’s credit history when authorising a loan. However, your credit rating isn’t the only indication of creditworthiness. At Pounds to Pocket we look beyond your credit score to determine your eligibility for an instant loan.

When you make your initial loan request our lending partners will perform a soft credit check. This won’t show up in your credit history and will not impact your score. They then consider your income vs expenditure primarily. If your loan is approved and you accept the offer the direct lender will then perform a hard credit check to finalise the transaction. That hard credit check will show in your history and will impact your score. However, the loan itself is already in place so your funds are secure.

Are Quick Loans an Affordable Option?

Quick loans provide much need financial flexibility for people who are in need of a quick cash influx. However, like all loans, they do come at a cost by way of additional interest. It is important to look beyond the simple sum of money you want to borrow. You must also consider the interest on top when determining affordability.

Before applying for any quick cash lending product consider the following points of interest:

• Total Cost of the Loan – It is important to understand the total cost of your loan. As a short term borrower, you should expect your loan to feature a relatively high-interest rate. This will affect the affordability of your loan. Remember, in addition to the sum you are borrowing you will be responsible for the interest that is added on top of your loan.
• The Terms of the Loan – Quick payday loans typically feature shorter repayment periods than larger loans from a traditional lender. That repayment period is an important feature of your loan. Late or missed payments are to be avoided at all costs. Review your current income, pay schedule, and recurring bills to ensure that you will be able to repay you loan in full and on time.

How to Apply Online For a Quick Loan

At Pounds to Pocket we make applying for short-term loans quick and easy. All you need to begin the process is fill in the online form provided. Simply tell us the amount you wish to borrow and follow the prompts as we collect some information about you and your current financial status.

To be eligible for a quick loan you will need to meet some basic requirements:

• Applicants must be 18 years of age or older.
• Applicants must be valid UK residents.
• Applicants must have income from employment or benefits.
• Applicants must provide valid e-mail addresses and other contact information.

If your loan request is approved your funds will be deposited directly into your bank account. In most cases you should have same-day access to the funds you have requested.

Learn How to Effectively Manage Your Finances

If you would like more information on managing your personal finances and improving your credit score you can access valuable information from the following UK government services:

• The National Debt Line
• Money Helper
• Step Change

These resources are free for use by the public and offer valuable advice and counselling for UK residents interested in learning to effectively manage their debt and rehabilitate their credit history.