An online cash advance loan is typcially a small amount of money that is borrowed over short term.
Ever felt the squeeze before payday? Those last few days before being paid can feel like an eternity. This is where an online cash advance loan can come in really handy. So, what exactly is one? Read below to find out everything you need to know before applying.
An online cash advance loan tends to be a small short term loan to tide you over until your next payday. Similar to a payday loan, it’s like getting an advance on your paycheck, but it’s from a lender or bank, and not your boss.
Most people apply online and are almost decisioned immediately. This means that they can receive the money quickly compared to other loan products. So it’s no surprise that it’s a popular loan for people to choose.
Usually, people use it for those little annoyances that crop up just before payday. So if you receive an unexpected bill that needs to be paid. Or you find your self with emergency car repairs or maybe a parking fine. However, it really shouldn’t be used for casual spending or non-emergency situations. By using it for non-essential purchases, you could end up in a cycle of paying a lot more back through the loan than you set out to.
A massive bonus with an online cash advance is that you receive the money you need that day. It’s a really easy process where you apply online. So there’s no lengthy paperwork or having to wait in queues at the bank. You find out if you’re eligible almost instantly and voilà.. the money is yours. You can apply straight from your smartphone too!
With any type of loan, there will always be a risk. As the application process is so seamless and you receive the money so quickly, there’s always going to be a slight downside. That downside is higher interest rates. From the lender’s point of view, as this is an unsecured personal loan, it’s a much more risky prospect for them. Therefore, to cover their own backs, they have to increase interest rates as there is a risk that you may not pay the loan back at all. However, you shouldn’t let this put you off applying.
If you’ve found yourself in a situation where you need an emergency cash loan quickly and are usually really good at budgeting and paying off a loan, then there really is no reason that an online cash advance can’t work for you. It’s like any other loan but whereas with a traditional loan, you’d have a structured repayment plan set in place to run over a few months or years. With an online cash advance, it’s the understanding that you’re likely to pay it back within the month, so in reality, you’ll only have to pay one block of interest on it. However, if you do default on your payments, you could find yourself with a late payment fee and added interest. If you can help it, always make sure that you pay back on time and in full. Having a late payment fee may be added to your credit history, and in the long run, could make it especially hard for you to obtain a loan again. So watch out for that one.
Anyone who is 18 years old or above can apply for an online cash advance loan. As long as you have a bank account for the money to be deposited into. For this type of loan a credit check will be taken out on you, but fear not, people with bad credit can still apply. It’s now more common for lenders to take into account other aspects of a person’s financial history, such as employment status and affordability checks. This means even someone with bad credit still has a chance to show that they can pay back a loan comfortably. Even though it could take a while, it also gives people with bad credit a chance to get their credit score rating back up. Whatever situation you’re in, there will always be a way to improve your financial habits and get back to where you need to be.
So, ask yourself why you need the loan? Knuckle down with your finances and note down all of your outgoings, what you have coming in and what you’ll need to make ends meet. There really is no point in burying your head in the sand. You’ll find that once you’re completely honest with your finances and have a structured plan and budget in place, the weight on your shoulders will suddenly seem a lot lighter. Start researching lenders and find the one that best suits your needs. Always look for a reputable lender who’s regulated by the FCA (Financial Conduct Authority) Most lenders are there to help you in your time of need, so their website should be packed full of information to make the best decision for you. Get to grips with the application process and once you’re comfortable, go ahead and apply. It’s really that simple!
If you are having financial difficulties or need to speak to someone regarding your financial situation before applying for a loan you can get free and confidential advice from MoneyHelper (formerly The Money Advice Service), National Debtline or debt charity StepChange.
Get your free loan quote today
Access from £50 to £5000†APPLY NOW
Representative 97% APR (fixed)
Representative example: Borrow £1000 for 24 months at 24 equal instalments of £77.48. Total amount to repay £1,859.52. Interest £859.52. Annual interest rate 70% (fixed). APR rates range from 45.3% APR. to 1575% Max APR. Your APR rate will be based on your circumstances.
We are not a lender but a licensed credit broker in the UK
Types of Loans & Credit