We have all found ourselves in the position of needing a quick answer at some point in our lives. This can be particularly important when it comes to financing.
If you find yourself in the position where you have found the perfect car but the seller will only hold it for 24 hours, jumping through the hoops and cutting through the red tape with your bank or building society can be both tedious and ultimately a waste of time.
Fortunately, some innovative lenders have seized the opportunity to cut down the application process to make sure that once granted, the balance of the loan can be transferred to the account of the applicant within a matter of minutes.
What Type of Loans Are These?
There are lots of loans that currently fall under the bracket of being an ‘instant loan’ but none of them offer a better deal currently than the guarantor loan.
Guarantor Loans are a variation of an unsecured loan. The difference is that the application is backed by an additional party who co-signs the agreement promising to repay the loan if repayments are missed by the borrower.
It is the presence of the guarantor which allows the lender to overlook the creditworthiness of the borrower and makes this type of loan perfect for anyone with a bad credit rating.
How do they work?
There are very few steps that need to be followed to apply for guarantor loans and the crucial ones, could not be much easier.
Just follow the steps detailed below for a quick and easy answer.
- Find a suitable guarantor
- Make an online inquiry/application for instant assessment
- Agree on terms for a loan with the lender
- Receive the balance of the loan into your account
- Make the required repayments
Once everything has been agreed, you will be free to spend the balance of your loan as you wish.
Is There Anything Else To Know?
Guarantor loans are as user-friendly as any loan currently on the market but as when applying for any loan, it is of critical importance that the decision to apply is a fully informed one.
New responsible lending practices are now in place to ensure that people do not get placed in a position where they can borrow something which they cannot afford to pay back so it is vital that if you apply for a loan, you can afford to make the repayments.
Despite the speed in which the application process can be completed, guarantor loans are also ideal to fix long term financial issues as well and are often used for debt consolidation.
People often turn to a guarantor loan because:
- They have a bad credit rating
- They have previous CCJs (County Court Judgements)
- They have been recently refused credit
- They have no credit history
- They are looking to find a way to improve their credit rating
- They are looking for a cheaper option than some of the other instant loans such as payday loans
By following the information detailed above and doing a little homework of your own, you will quickly find that there is an option out there that cuts through the red tape and offers an affordable instant loan that does not compromise you in the future.
Know Before You Take One
Fast cash loans are loans that you take when you are in short of money towards the end of the month. Likewise, they are also called payday loans and they are quite easy to get. There are not many criteria to fulfill if you want to get an easy cash loan.
All you require is to be at least eighteen years of age, be a citizen of the United States, have savings or a checking account, and show pay stab of at least 6 months previous. All these will ensure that you get a fast cash loan in no time.
The instant loan has come a long way in helping middle level working employees solve their credit trouble. For people who live from one paycheck to another, there are times when you run out of cash towards the end of the month but there are expenses that you have to meet. What do you do in such cases?
These are the times when an advance cash loan, which credits your account with a certain amount of cash within twelve to twenty-four hours to meet your financial emergency, comes in use. The best part is since it doesn’t involve you getting any approval for your credit records, these are very easy to obtain.
What are the advantages of a fast cash loan?
There are various advantages that instant payday loans offer. These are:
- You can get the loan money very fast, that is, within twelve hours to a maximum of one day.
- You can fill out an application and submit it online.
- You can compare rates and other offers that the lenders are providing you by browsing for different lenders online.
- You can get the loan even if you have a bad credit score.
- You can have financial salvage when no other loans could have helped you.
- You don’t need to go through extensive checking of documents thereby saving time and energy.
What are the disadvantages of fast cash loans?
Along with advantages, there are some disadvantages that fast cash loans have too. These are:
- These have a very high-interest rate.
- These have a payback period of a maximum of 30 days. If you fail to pay back the amount you had borrowed within this time, you will face a penalty in the form of late fees and also an increased interest rate.
Thus you can see payday loans are good only as long as you use them for an emergency. You should not make it a habit to use payday loans.