Instant Cash Loans – A lot is made of the speed of getting cash into your account by many short term payday lenders in the UK.Â But, how relevant or important is this for the users of such loans?
A recent survey by Gimmedosh.com revealed that nearly 65% of all applicants for short term payday loans donât take any notice of the âspeedâ claims made by these companies, but rate getting their hands on some instant cash from reliable and responsible lenders as relatively more important.
A number of payday loan providers claim that they can process applications and transfer the money into your bank account in â15 Minutesâ!Â This is a fantastic marketing slogan that they seem to think is getting borrowers excited and attracted to their site.
But, the survey by Gimmeosh.com indicates that these claims arenât seen as critical when people are comparing payday lenders and eventually choose the provider.
Best Payday Loan Rates
However, borrowers do compare the payday lenderâs interest rates (APRs) in order to get the lowest rate (APR) for their instant cash loan.
The survey also showed that nearly 35% of the applicants didnât regard the best interest rates available in the market as important when choosing the lender, but would select the company based on the âadvertisedâ speed of receiving the money into their bank account.
So, whether youâre after an instant cash loan, quick payday loan or fast short term loan, Gimmedosh.com will find the best lender to meet your time criteria and the lowest interest rates available.
Reasons for a Loan Application
The main reason, found by the survey, for making a payday loan application was that 60% of borrowers have an urgent need for instant cash to pay for an emergency, e.g. car or boiler repair, as the money in their bank account is needed for various direct debits and standing orders.Â They also stated that they would make certain cutbacks the following month to find the money to repay the loan on time.Â At least 20% mentioned the use of ârolling overâ the loan to the following month and 5% stated that it was sometimes necessary to do this 3 â 4 times for the same loan.Â The rolling over of payday loans is a very expensive option and is not recommended by most of the trusted providers, as the original loan amount can quickly escalate to a very large figure.
Some people, approximately 10%, would borrow a payday loan instead of asking for a bank account overdraft or use their credit card, since they find a quick loan much more âconvenientâ than applying for a mainstream unsecured loan from a bank, going overdrawn or spending on their credit card.
The majority of the big players, e.g. Wonga, PaydayUK, Quick Quid or Payday Express will more than likely become part of the âmainstreamâ lending market in due course, especially as a result of the changes in legislation being introduced in 2014 to put more controls on the short term payday loan sector.
It could even be possible that some of the mainstream lenders will takeover the best and largest payday lenders to capture yet another lucrative market, as they have recognised that a good proportion of payday loan users are low risk individuals looking for instant cash loans instead of the longwinded applications needed by the high street banks.