Requiring cash fast is a situation that many households find themselves in, especially since the pandemic started and Covid 19 forced many people out of their jobs for months. So, if you are in this position – don’t worry, you aren’t the first and you won’t be the last! The solution to this problem for you might be to apply for an instant cash loan.
There are many advantages to applying for instant cash, including the fact you can often receive the money within 24 hours, and you can use the cash quickly to cover your bills. But, applying for such a loan should only be done when you have no other option, and where the debt would not be a problem with paying the cash back. Cash loan provider Wonga, set up their money academy on their website advising people when to apply for such a loan. They say you should categorise your debt into ‘good’ and ‘bad’ debt. Good debt would be when you apply for a loan that will genuinely help you or your finances, for instance, for medical or educational fees, or to consolidate a higher interest debt, or when you are using it as a short term option to bridge the gap before pay day. Bad debt would be if you are just using the cash to pay for a holiday or a shopping trip. This is an unnecessary purchase and one that should be avoided.
When applying for an instant cash loan, you should bear a few things in mind. You MUST use a reputable provider – do not use loan sharks. Loan sharks are dangerous because they charge very high interest fees and their methods for collecting payments are sometimes unorthodox and aggressive. Instead, look for a reputable provider online. The great thing about our day and age is the technology we have at our fingertips, and now applying for a loan is conducted online in a matter of minutes, rather than going to the bank and sitting to talk to a bank manager, filling in a lot of paperwork. Also, decisions are made in minutes too, which is great for time saving and convenience.
The Independent also emphasises the importance of shopping around. You need to see what other rates are on the market and compare the true cost of the loan. Use online calculators to determine how you would repay the loan in full and during what time frame. You might also consider using a credit card instead of a loan – sometimes this has more favourable rates but the market is constantly changing. One final tip would be to check your credit rating before applying. You can do this easily online and it is well worth knowing what lenders see when they conduct a credit check on you. In some instances you may even be able to correct your credit file over time, and so checking it regularly should be part of your financial plan, regardless of whether you are applying for a product or not.