How does a quick cash loan work?
A fast cash loan works in much the same way as any other type of loan. You apply to borrow a certain amount and pay it back in monthly instalments over an agreed period of time. However, one major difference with a cash loan is that some lenders will give you the choice of the funds being electronically transferred to your bank account or delivered to your home in the form of physical cash. This is sometimes known as a doorstep cash loan.
Whichever method you choose, it is recommended that you decide how much you wish to apply for and then see how much you can afford based on the repayment options.
If you can get a low interest rate, you may be able to borrow a larger sum of money with the same monthly repayments. It is important you choose your provider carefully and conduct thorough research to get the right cash loan for you. Before making any decisions, you can use our helpful budgeting tool and loan calculator to work out what you can afford to borrow – and ultimately pay back.
Cash loans, payday loans and some short-term loans however can come with an extremely high interest rate. Depending on your own circumstances, if you think a 118 118 Credit Card may be an alternative, you can use our credit card eligibility checker to see if you’re likely to be accepted or not. This doesn’t impact your credit score, but if you complete a full application we do conduct a full credit search.
How do I choose the right cash loan?
Before entering into any contract, be sure to thoroughly check the terms and conditions of all lenders when comparing your options. Another thing to consider is the documentation you’ll need to provide and the time you’ll have to wait before having access to the funds.
And some lenders will charge upfront fees, so make sure you know all the details before starting the application process. If you need any help deciding what is best for you and your current situation, then why not take a look at our money guidance section for further information, or our guide on how to borrow money.
An important thing to remember is that short-term cash loans can be a very expensive way to borrow. That could make an already difficult financial situation worse, which is why we think the 118 118 Money Simple Interest Rate Credit Card could prove a suitable cash loan alternative.
Credit cards or cash loans?
When choosing between any two financial products, you need to understand their key features and how they work. That’s why we’ve put together this summary table comparing some of the features of cash loans and credit cards:
Often lower than cash loans
Often higher than credit cards
Made in full, in minimum monthly repayments or any amount in between
Made in monthly instalments, potentially with the option to pay off more and settle the loan early
To be used as a continuous line of credit, within the credit limit
The cash loan agreement ends once you have repaid the money in full plus interest
Do I qualify for a credit card?
If you think a credit card might be the best way for you to borrow, we recommend using our free eligibility tool before you apply. It only takes a few moments, and it will give you an idea of whether we can approve you. It will also let you know the credit limit we can offer, and you don’t have to worry about it having an impact on your credit score. To be eligible for the 118 118 Money Simple Interest Rate Credit Card you’ll need to:
- Be a UK resident
- Be aged between 18 and 70
- Earn at least £8,400 a year
- Not be in arrears with another lender
- Have had no default payments in the past six months
We’ll also need to know the following details when you use our eligibility checker:
- Email address
- Date of birth
- Current employment and residential status
- Net monthly income
- Home address
Will I have to go through a credit check?
Yes. Any providers of credit cards or cash loans in the UK will have to carry out a credit check when you apply in full. It helps us work out if we can approve you and you can always check your credit report before you start.
And don’t forget that our eligibility checker is completely free and doesn’t affect your credit score.
Will my credit rating be affected if I apply?
Applying for a quick cash loan or a credit card can affect your score. However, if you’re approved and you make the repayments in full and on time each month, it can work in your favour. This shows lenders that you can be trusted with credit and can improve your score.
However, there are some things that can negatively affect your credit rating. For example, if you put in multiple applications over a short period of time, or if you miss or are late with your repayments.
What’s the best way to get in touch?
If you want to know more about credit cards, or how we can help, please feel free to contact us at your convenience.
Our Customer Services team are available on 02920 548 118, with lines open from:
8am – 7pm Monday to Saturday
9am – 5pm Bank holidays
Closed – Sundays