When an unforeseen expense crops up out of the blue, you can find yourself floored if you do not have a sinking fund to fall back on. Financial experts suggest stowing at least three months’ worth of your living expenses, but you would be hard-pressed to put by when you are living paycheque to paycheque.
However, studies have reported that low wages and the rising cost of living should not be completely blamed for people’s inability to have an emergency cushion. Poor money management is also one of the reasons why people often run out of money during emergencies.
Whatever the reason, you would want to get an instant injection of cash and here comes a quick loan. All small loans are quick because you can get them almost the same day you put in your loan application. The decision is made quickly based on your income details.
Loans that you can get as quickly as anything
There are various types of quick loans, and you can get them as quickly as a flash.
Small cash loans
Small cash loans are payday loans typically aimed at subprime borrowers who need money to fund unforeseen expenses. These loans are not subject to a credit score check, and hence, the lending decision is simply based on your income details.
Since your credit score is not up to snuff, your lender will be loath to offer you lower interest rates. Small cash loans can be more expensive than bad credit loans, but interest rates are capped at 0.8% per day.
At the time of taking out these loans, you must ensure that you can easily manage to pay off the loan on time as the rollover will quickly add up the cost and you might fall into a vicious debt circle.
No guarantor loans
No guarantor loans are an alternative to small cash loans, but they can allow you to borrow slightly higher sums, and therefore, they are perfect to fund your big expenses. Even though you borrow a larger sum despite your poor credit history, you are under no obligation to put down collateral or arrange a guarantor.
Interest rates will be competitive, but the disbursal is faster than ever. The lending decision is quickly made based on your financial details. However, these loans are subject to affordability checks, and a thorough credit check is part of it.
The odds are you are refused a loan if your credit score is lower than the bare minimum your lender has set as eligibility criteria. A few lenders might be flexible to sign off on, but higher interest rates will be charged.
If the amount is small, you will be liable to pay off the debt in a lump sum on the due date, but if the amount is large, you will pay it down in fixed instalments.
Bad credit loans
Bad credit loans are also quick cash loans; however, you have carte blanche to use these loans for any type of expense. It means whether you need money to repair your laptop that abruptly conked out or you need money to fund your vacation, bad credit loans can be used for any needs. The size of these loans depends on your affordability. Under no circumstances will a lender sign off on your application without a credit check. Interest rates will undoubtedly be higher because of your bad credit rating.
The useful thing about these borrowed money is that they are beneficial to help polish up your credit report. If you stick to your payment plan, your lender will inform credit bureaus of your timely payments. This will strengthen your credit history, and you will benefit from it the next time you apply for a loan.
Bad credit loans work the same as small cash loans if the borrowing sum is not more than €1,000. When the loan is small, you will need to pay it off in total. There are a few lenders that will let you pay it down in fixed weekly instalments, though. Do research before using these loans to fund your needs.
Doorstep loans are home credit loans aimed at funding your small emergencies. Applying for these loans is very easy. You just have to let your lender know how much money you like to borrow. These online loans in Ireland can be a bit expensive because your lender will charge for making arrangements to hand you money on your doorstep.
Doorstep loans are like payday loans, but they are subject to additional fees and costs. A representative of your lender will visit your house to hand in and collect money on a scheduled date. Since these loans are small, you will have to pay off the whole debt on the due date. If your lender puts you on an instalment payment plan, it will cost you extra fees.
The final word
All types of small loans can be availed of as quickly as possible, usually on the same day you fill in your application form. These loans are particularly aimed at subprime borrowers and, therefore, are expensive. It is always advisable to apply for these loans only when you are in a dire need of money. They can cost you an arm and a leg if you fail to settle them on time. Understand the features of each loan so they can help meet your purpose without trapping you in a debt spiral.