Did you know that nearly 25% of the British population finds themselves in a financial pinch? Or that of a surveyed 2,000 adults in the UK, 10% already have maxed out cards?
These numbers already explain why the total amount of consumer credit in the nation continues to rise. In fact, from 2013 to 2017, it grew by a whopping 10.3%.
This should also tell you that your low-on-cash situation is something many experience. There are lots of people, like you, who need money now.
It’s because of this growing number of borrowers that you’ll now find lenders offering aid to consumers in need of money ASAP. Don’t worry, this help comes in the form of non-traditional loans far easier to qualify for.
What exactly are the financial services we’re referring to though? Read on to find out more about these modern loan options!
1. Payday Loans
Ever heard of payday loans? You most likely have, seeing as this specific financial service industry now has an impressive worth of ?220 million!
That kind of value tells you that payday loans are some of the most popular loan options nowadays. Indeed, it’s one of the preferred ways on how to get money today.
Here’s what you need to know about these loans:
Loan Qualification Made Easy
For starters, because they’re easy and quick to qualify for. Complete the minimal requirements, and you can have the cash you need within the same day, or two at the most!
In terms of qualifications, you need to have permanent employment and earning a fixed salary. Of course, you’d have to prove this, but in many cases, company identification is enough. There’s no need for collateral, since these loans aren’t the secure type.
How They Work
At their core, payday loans are short-term financial services requiring payment by the time you receive your next salary (hence, the name). That places the due date within two to three weeks from now, say if you get the money today.
Note, however, that some payday loan lenders offer longer repayment terms, such as within three months. Make sure you take note of the interest rate for this longer duration though. This way, you can gauge whether it’s too high for your (and your wallet’s) comfort.
In terms of loan amounts, the typical minimum is about ?75. Depending on who you deal with though, you can get as high as ?1,500 or even more.
To top it all off, reputable lenders also offer their payday loan services to people with bad credit! That’s right. Even if you’ve had some money issues in the past, you can still qualify for this loan and get access to that quick cash right away.
Again, practice caution when opting for a higher amount, since these financial products come with higher interest rates than your typical personal loan from a bank. But so long as you do your research and compare offers from various lenders, you’ll find great deals.
2. Small Personal Loans
If you’re looking for something more long-term than payday loans, consider a small personal loan. Especially if you’re one of the 10% of UK consumerslenders have rejected in the past due to bad credit.
If you need money now, then a small personal loan for people with bad credit is one of your quickest solutions. You have two options: secured and unsecured loans. You’ll find lenders offering both types to borrowers who’ve had the unfortunate experience of loan denial.
With a secured loan, you’d need to provide collateral – or “security” for the loan – to qualify. This’ll serve as some sort of “assurance” to the lender that they’ll recover their money in case you can’t pay your loan back.
Note, however, that a secured personal loan, seeing as there’s collateral involved, further boosts your chances of qualifying. In fact, it can even help you secure a bigger loan amount.
The accepted collateral varies from lender to lender, but here are some of the most common:
- Real estate property (your house)
- Car logbook
- Invoice collateral
Secured personal loans are a better option if you need an amount bigger than what most payday loans can provide. After all, we’re talking about your house or your vehicle as the security here!
Otherwise, you may want to consider going for a payday loan or the next type of loan option you have: The unsecured small personal loans.
Small unsecured personal loans are another way to address your immediate need for cash. Payday loans, by the way, are a type of unsecured loan. You don’t need to put your house or car up for collateral, but you can still get the money you need right away.
If you haven’t had that many financial problems in the past and you have an average credit rating, a small unsecured personal loan is a good way to get that money ASAP.
There are some lenders who’ll still grant you approval for this type of loan even if you have bad credit. However, if your poor credit is more on the extreme low side, then a secured loan may be your better option (you’ll have a higher chance of getting approval). Also, if you need only a smaller amount, then go for a payday loan.
Need Money Now? We Can Help
In any case, the type of loan you should apply for depends on how much you need. If you need money now but you only need, say between ?75 and ?1,500, then a payday loan may be the wisest choice. Even with a bad credit rating, you’ll have no issues finding a lender who can serve as some sort of financial bridge until your next salary.
If you’re unsure of which type of loan best suits your needs, please feel free to connect with us! We can help you figure out which of the above-discussed loan options you should get. To top it all off, we’ll even help you find the best lenders!