You may have heard of quick loans but not know what they are. You may feel that you will not really need to use them and so it does not really matter but it is actually really important to make sure that you do have an understanding of all loan types. This is because you never know when you will need some money and so it is a good idea to find out about all of the options that you have and then if you do need it then you can use it. It can also just be useful to have this knowledge so that you know about these things in case it ever comes up in conversation with anyone else. It can just be good to stay on top of these new developments.
How is it quick?
The name quick seems to come from a selection of different things. This is because the loan is quick to apply for, quick to arrange and quick to repay. So, it could be any one of these! Applying for the loan is quick because it can be done online. You will not have to wait for a paper application form to arrive, you just have to complete the online one. The forms are simple to complete as well and some quick lenders will even let you apply over the telephone. This means that you will not need to do anything apart from speak to someone and tell them the information that they need.
It also takes a short amount of time to get the money that you are borrowing compared to other lenders. This is for several reasons. Firstly, the lenders are set up to be fast to lend and this means that they act on this. They know that borrowers will tend to go to them because they need money quickly and so they are set up to deal with this. They will process the applications quickly. They have plenty of staff so that they can do this. Some of them will also open for longer hours, such as weekends and overnight so that they can process applications more quickly. This means that it can be possible to get the money that you need within a few hours even if you are applying at a weekend. However, you will need to check to make sure that the lender that you are choosing offers this service.
It is also quick to repay which means that you do not have the loan for long. The idea is that you will repay the loan in full when you get paid. This means that the loan will normally only last for a few weeks or perhaps even less. It can be a good feeling, knowing that you will not have to wait long until the loan is repaid, but you will need to make sure that you have the money available to pay it.
How does it differ from other loans?
There are quite a few differences which have already been mentioned but it is good to know about the others that there are as well. Then you will be able to decide whether this type of loan is the right one for you.
The amount that you can borrow can differ. For a quick loan you can generally borrow between £100 and £1,000. This means that you will be able to use it for smaller items but not for things that cost a lot. You may also find that lenders might want to only lend you smaller amounts of money if you are a first time borrower as they will want to make sure that they can trust you to repay the loan. The reason that they need to build up trust is because they do not normally do a credit check in the same way as other lenders. They will lend to people that have a poor credit record and so they realise that they could be taking on a high risk by lending. So by lending a smaller amount of money they will reduce their risk and if you pay it back then they will be confident that you will be able to repay a higher amount.
The lenders also are not the traditional ones that you might see on your high street. Most of us will be familiar with many high street banks but not so much with the quick lenders. However, they are not necessarily any less trustworthy just because you have not heard of them. You will be able to find out more about them on their websites if you want to. You should also be able to find out about more about them in other places online as well so you can make up your own mind about them.