Xmas 2012 – There are many ways to borrow quick cash, unsecured personal loans or secured loans. When would a short term payday loan fit the bill?
The mainstream lenders, banks and credit card companies, provide this type of credit to the safe and low risk individuals who have a good to excellent credit rating. These are usually for amounts from Â£1,000 to a maximum of Â£25,000 lent over 12 months to 60 months and the interest rates (APRs) can be as low as 7.9%, but normally 12 to 17.9%.
However, where can you go to get your hands on some quick cash to meet an emergency financial need if the big boys wonât lend to you because of your poor credit record? Most people turn to the payday loanÂ market, which caters for borrowers with a less than acceptable credit score that are looking to get a relatively small amount of quick cash, e.g. Â£500, as quickly as possible. The higher risk of the business being taken on by these specialist lenders is covered by the much higher interest rates (APR) they charge, which can be as high as 1500%.
Some may opt for the high street providers that tend to have the highest interest rates for short term payday loans, but most borrowers now rely on the online lenders, as itâs easy and fast to apply and receive the funds, sometimes as speedy as 1 hour, but normally it can take up to 24 hours.
Gimmedosh.com can do all the hard work for you by applying to a number of the best providers who offer the lowest interest rates (APRs) available for short term payday loans. Rates are generally lower now than they used to be in the high risk unsecured loan sector, so it costs even less to borrow up to Â£1000 to get out of a difficult financial situation.
There are only a number of criteria that borrowers must meet to apply for a short term payday loan through Gimmedosh.com. You must be a UK resident, over 18, with a steady job and a UK current account that receives your salary. Thatâs it.
These are also known as Top Up or Further Advance loans that can only be applied for by homeowners that have sufficient equity in their property. Thereâs no guarantee that the lenders will advance these loans, since their property valuation may come short of the ownerâs value on the application form. The first mortgager also has to agree to the second charge being place on the property by the secured loan.
Obviously the amounts people want to borrow using this type of loan is much higher, e.g. Â£90,000, for doing a major extension.
The providers of secured loans tend to lend to people with less than perfect credit rating, as they use the homeownerâs property as collateral in case of non-payments. The risk is obviously a lot less for the big lender, as they can always repossess the property to get their money back.
There has been a rapid rise recently in the provision of âlogbookâ loans, which are effectively a type of a âsecured loanâ, as they use the vehicle as collateral.
Instalment Payday Loans
The other rapidly expanding type of loan in the high risk sector is the option of borrowing over longer than 3 to 30 days, i.e. from 3 months to a maximum of 12 months.
This type of loan is effectively helping those people who are in financial difficulty and would like to spread the payments over a longer period. These can be more expensive for the borrower, as the interest and charges can be considerably more than the short term payday loan product.