Tag Archives: short term
Cheap cash loans: financial help within your reach
Are you facing a small cash trouble and have inadequate financial resources to come out of deficit? Dont worry about those small troubles because cheap cash loans are a remedy. But is the interest rate on short term loans is another matter of concern. Thus to relieve you from this problem also cheap cash loans are offered in the market. This short term loan you allow to discharge your short term requirements on time. You can get the financial aid at low interest rates easily.
Your bad credit scores will not pose a restriction on you. You can apply with your impaired records like arrears, late payments, skipped payments, bankruptcy, CCJs and IVA. Anyone can qualify for this financial help easily.
These cash loans lend you quick financial support in urgent needs. Most importantly the hectic formalities will not be reason behind any delays. Yes! Now you can grab the amount within 24 hours without faxing documents or facing paperwork formality.
One can get access to small cash amount ranging from $100-$1500. The cash assistance can be gained for a small repayment term of 15-31 days at maximum. These loans are short term loans and unsecured in nature, therefore carry slightly higher rates of interests. But to help you get financial help these are known offered at lower rates of interest that are affordable.
Qualifying for these loans is simple as applicants just need to comply with a basic eligibility criterion. In order to get instant approval you must have attained 18 years of age, hold a valid checking/ savings account since past 6 months and must be working on regular basis with any company.
Online is the place to apply comfortably and search for a lower rate deal. There are incalculable lenders offering great and competitive deals. You can apply with anyone by filling a simple form. Access to different loan quotes enables you to compare and select one that suits your requirements.
The most considerable characteristic is that one need not fax any documents, no paperwork and face collateral evaluation. Rather can grab small amount quickly within 24 hours.
Are Payday Loans Good or Bad?
When it comes to Payday Loans there is divided opinion on whether they are a good thing or a bad thing. But why are they perceived by some as a bad way of worrying? To look at this we first need to look at exactly what are Payday Loans?
The clue is in the name. They are a short-term loan designed to paid back on the borrowers next Payday. Therefore, the loan is designed only to be borrowed over a few days or at a maximum of a few weeks.
The key with any borrowing that is taken out is that the borrower is always keen to know the APR. This is understandable and this is why Payday Loans are sometimes criticised. The APR on a Payday Loan is high very high. However, the key with a Payday Loan is remembering that you borrow the loan only over a matter of days. APR stands for Annual Percentage Rate so is therefore a percentage rate over a year. It is therefore deemed a little unfair to judge a payday loan over a year as nobody would borrow the loan over that length of time.
It is common knowledge that if you were to borrow an unsecured loan over a few years you can expect to pay back sometimes double of what you initially borrow especially if the length of time the loan is taken over is a few years. So how does this compare into the Payday Loan world?
It is hard to give a specific figure on the amount of interest you will pay on a payday loan as there are many lenders that have different rates. It would not be unfair to say that you may pay back £30 of interest for every £100 borrowed. So, a £300 loan would cost you a total of £390. This would be at an APR of 2000%+ Sounds high? Well, remember the APR is if the loan was borrowed over a year but you will only borrow it for a few days/ weeks.
On the above Payday Loan model you are paying about 1/3 of the amount borrowed in interest. How would this compare to a £5,000 unsecured loan borrowed over 7 years? A 1/3 more of the amount borrowed would be a total payback of about £6,650. This could be achieved at a monthly payment of around £98. So the APR would be similar as the Payday Loan? No. The APR on this example would be about 12.4%.
I hope the above example highlights the “APR argument” when it comes to Payday Loans. You can pay the same split of interest on a Payday Loan as an Unsecured Loan and the APR is massively different the sole reason for this is that a Payday Loan will only be paid back over a matter of days.
Do Payday Loans deserve their bad reputation? Probably not. If they are used correctly, as a short-term financial product instead of a long-term financial solution, and they are paid back on time then they are an excellent form of short-term borrowing in an emergency.