Instant Cash Loans Problems
The main problem with this type of quick cash loans is their high interest. In some cases an APR of more than 3000% is being asked! However this is not the interest a typical borrower will have to pay. This type of loans will need to be repaid within 14 to 30 days.
There are of course exceptions to this rule, but in general they will not run for much longer than a month. After that time the typical repayment of a £100 loan is between £125 and £130. Which means you’ll pay £25 to £30 in interest. Quite a reasonable amount and a far cry from the 3000% APR often touted.
So where is this number coming from? Well APR is based on loaning a sum for a full year. This is not what an instant cash loan was designed for and that shows in the APR calculations. A large number of fees and penalties are taken into account for these calculations. As you can imagine if you take out a loan of two weeks and only repay it a year later there will be significant penalties and late fees involved. In many cases the cost of bailiffs and such are included as well.
So yeah, if you intent to take out a loan for a full year, you would best not take out a loan designed to last only two to four weeks. Are there any other problems with short term cash loans apart from the interest rates? Not really, most of this industry is highly regulated. While reports in the media on the lenders involved in this industry are not favorable you have to keep in mind that the media relies on attracting a lot of readers so a bit of hype is not something they shy away from.
Basically the amount of interest you will pay is vastly overstated and you will often just have to pay a few dozen quid, which is a low price for getting yourself out of a tough situation, right?
Why the high interest rates?
The main reason for the interest these type of loans command are because of their high risk. Research on the rate of default has brought a staggering of defaults to light. The lowest reported default rate was 6%! Another report concluded that the industry as a whole loses roughly a quarter of their total revenue to defaults and to the costs needed to reclaim their money from bad loans.
The reason being that a large number of people take out a loan when they simply do not have the means to repay it. In some cases taking out multiple loans for frivolous things like holidays, going out or buying a better looking car. Clearly not the things you should be spending your money on if you’re having money problems. If you are taking out a loan for household necessities, fixing your absolutely essential car or paying an unexpected bill you will be fine however. If you are someone that has never run into big money problems before you will likely pay a lower rate than those with a bad credit. Often they simply are not allowed at all as they pose too great a risk of default.
Unfortunately it is simply not possible to avoid every kind of bad loan and these will increase the interest rate for the rest of us who are not wasting their money on useless things. The second reason is that there is no security for the lender, when you take out a mortgage the lender is secure in the knowledge that if you can’t repay the mortgage they can simply sell the house or building.
This is not the case with these small cash loans, the only security they have is that the person taking out the loan has a job. Other than that there is nothing giving them any security, which is reflected in the rates they are forced to charge to make sure they are not losing money in the longer run. That sounds pretty fair to you, right?
Where should I get my instant loan?
There are a large number of providers, however it quickly becomes obvious that many of these should be avoided. Not just because of their high costs, though important of course, but a number of them also have gotten a bad reputation in the industry for their bad practices. Often calling their clients and trying to get them to take out another loan or in extreme cases even selling their information to other companies in the financial sector. Which means you could be bombarded with unwanted calls, e-mails and regular mailings. Not the thing you want to deal with, let alone when you are struggling financially.
To avoid these few bad apples you will need to do a lot of research, but who has the time for that these days. You’d rather spend that time with your family and friends or working more hours at your job right? Well you could of course simply take the first offer you see, but you might be wasting a lot of money that way, not something you should be doing when money is already tight. We can hear you think: “Well, what should I be doing then?”.
Simple, let us do the job for you! We have already done all the research needed and picked a great offer for you. It is the perfect mix between a low interest rate and a highly trustworthy company. Meaning that they will not sell your information to a large numbers of other institutions and will certainly not be calling you months later with an offer for a new loan. The low interest rate means you will not have to worry about being able to repay either. You can borrow between £100 and £1000, so there is plenty of choice to tailor the loan to your needs!
How do Instant Cash Loans work?
People are often hesitant about taking out a short term loan as they are not sure what to expect. Well we are here to assuage your fears and give you answers to all your questions, probably even questions you had not even thought of yet! The main fear people have is how the repayment works, they have an image in their mind of pairs of heavy-set men coming to their doorstep and demanding money.
Maybe this used to be the case a few decades ago, but you won’t be dealing with loan sharks when you click on our offer. You will be asked to fill in some information on your employer, your bank account and such. You may be hesitant to provide this information over the internet, but it is perfectly safe. All your information is heavily encrypted and will never fall into the wrong hands. If you take out a loan this information will be used to deduct the money owed after the loan expires.
Usually you should take out a loan that runs until your next payday. That will allow you to keep the period of the loan as short as possible, saving you quite a bit of money on repayments. What happens is that your payday arrives and your income is deposited on your bank account, then your loan expires and the loan + interest is automatically deducted from your bank account. Simple and easy, no hassle with having to mail checks somewhere or making payments in person, everything is automated.
All you have to do is make sure there is enough money on your bank account to cover the loan, which should be no problem as you have just been paid. Another fear people have is that everyone will know they are in a rough spot and had to take a small loan to make things work. Well you can be sure nobody will find out, unless you tell them yourself. The lender will never divulge this information and nobody but you will have access to the records.
So why do some people think everyone will find out? The reason is that you need to fill in your employment information. They are afraid that the lender will contact your boss and ask all types of questions and they don’t want to boss prying into their personal affairs. With good reason of course, nobody wants their boss to find out what they do in their personal time.
However, you can rest assured, the only reason they need your information is so the lender knows you will actually be able to repay the loan once your payday comes around. It is not used for anything else, they are not even allowed to contact your employer to ask these type of personal questions! So now that your greatest fears have been alleviated take a look at our offer below!
How long does it take before I have the money?
The reason you are looking for information on instant cash loans is because you need that money as fast as possible. So you want to know just how long it takes to pocket that money, because you need to take care of something right away. Rest assured, we know you want your money fast, so we only deal with same day cash loans. After you fill in the form you will very quickly be contacted with a great offer. Often this will take just a few hours and at most a day.
The reason for this delay is that the lender will have to verify your information, because of the amount of fraud they can’t just rely on the information you provided. This is also in your best interest as it allows them to keep their margins low, which means you will pay less than at other providers. When you accept the order the money will be transmitted to your bank account and you will be able to spend it in whatever way you see fit.
Other loans will come with strings attached and all types of things you can and can’t do with it, this is never the case with this offer. You can take out cash loans today and be spending the money that same day or the next day if you take out a loan in the evening. The only reason it takes that long is because banks do not process orders during evenings and nights.
What happens if I can’t repay my instant cash loan?
While we hope this never happens to you it is still something that could happen if you are fired or get a divorce. People are afraid to take out a loan because they envision repossessions, lawyers and any other doom scenario they can think of. Well this is not something that will happen to you if you don’t bury your head in the sand.
Once it becomes clear you will not be able to repay your loan you should contact your lender as quickly as possible. They will want repayment, but when you make clear to them you cannot afford to repay at the moment they will quickly see reason. They would rather see you repay them at a later date than having another default on their hands. So they will work with you or a debt counselor working with you to clear your financial problems.
So there is nothing stopping you from taking out one of our best instant cash loans on the market today. Simply apply for it by clicking the banner below and you will be well on your way to having cash on hand in just a few hours!