Know the Ideal Type of Cash Loan for Your Credit Situation

Posted by Jemma Madison on March 31st, 2018

When you are financially broke, even a small cash lapse can affect your loan repayments. Constant cash crunch and need to borrow more are two of the most common fallouts of bad credit rating. According to a recent news report, thousands of households in the UK are using private loans online to pay for their basic needs.

These household are using online cash loans as a payday loan for their primary needs of food and house rent. While main street lenders continue to make it difficult to borrow with low means of income, FinTech has particularly sprawled all over the internet to offer multiple options to borrow loans with bad credit.

In all, borrowing needs of bad credit borrowers are for real. Let’s list below top 3 methods to draw urgent cash loans in the UK.

Payday Loans

A payday loan is a short-term signature loan that is extended to a borrower with a fixed income source. These loans are generally available with no credit check loans and thus the rate of interest varies according to the profile.

However it needs to be repaid on next paycheck. The disbursement is almost instant and thus payday loans are also called as cash advance loans. Precisely for this reason, a lot of bad credit borrowers rely on payday loans for their urgent cash needs.

The convenience of instant cash loan, however, comes at an additional interest rate. These loans are generally used by borrowers to meet their urgent cash gaps before their next salary.

In case of nonpayment, you can sometimes roll over and extend the loan. But this can pinch your pocket. It adds on your debt burden with additional late payment charges.

Doorstep Loans

Many borrowers find it overwhelming to repay a loan as a lump sum amount and thus look for ease of repayment. Doorstep loan allows a borrower to avail a small instalment loan despite their bad credit. As the name suggests, this type of credit entails home delivery of loan amount. You get to avail each instalment, right at your door! The loan repayments are generally flexible and allow weekly or fortnightly repayments as per your ease.

As you make a query for doorstep loan, a loan agent visits your premises. Herein the loan agent would discuss your credit situation and make a loan agreement according to mutual consent.

Short term loans

Both payday loans and doorstep loans are types of cash advance loans which are available to borrowers with low loan eligibility. These are ideal for very short cash requirements; however, if you need more than £1000 you must opt for short-term loans. These loans are available as secured or unsecured loans. These loans are ideal to meet your temporary financial hassles as they come with a fixed repayment schedule. You can conveniently plan and manage your instalments in advance.

You can contact a loan broker for a customised loan for bad credit. With the growth of FinTech market, it is completely possible to borrow flexible short-term loans for borrowers with credit hassles. Contact a broker online and share your needs. As your query reaches a broker, a loan agent would call you and share the filtered loans for your purpose. You can compare and choose the best option without any obligation.

Visit: Loan Princess