It is not unusual to find yourself in a financial fix at some point in life. More often than not, it happens when you’re expecting some cash but you just have to give it a few days more. Cash emergencies can come in a wide range of forms. It could be a pressing medical bill that you need to pay off, a broken-down car that you need to fix or a critical utility bill that is overdue and will mess your life up if neglected. But thanks to the many reliable financial institutions nowadays, you no longer have to bear with the embarrassment of having to ask a friend or relative for a soft loan or quick cash.
As a matter of fact, you no longer have to deal with the frustrations of traditional borrowing where it could take days, even weeks for banks and other lending institutions to process your loan request. Today, private lending institutions have made things easier, especially when it comes to small, short-term quick cash solutions. Did you also know a bridging loan can be used as short term finance option? But then again, there are still some important things that you need to know for you to get the most out of the hassle-free loan opportunities of this age and day.
This having been said, here are the top 5 hassle-free loan tips you should know.
1 – Your credit score matters
Credit Score is one of the most important things most lenders look at before awarding loans or even considering a party eligible for lending. As a matter of fact, most people get rejected due to low credit scores. The credit score is basically a measure that speaks about a person’s creditworthiness and financial position or status. In most cases, this is expressed through your credit report, which includes records of your borrowing history, defaulted payments if any, number of current loans, your income, and so on and so forth. People with a low credit score can always apply for bad credit loans. Additionally, your credit score determines your maximum eligible loan or loan limit.
2 – You need to pick the right loan
Banks and other lending institutions have various types of loans. In most cases, fast loans are often categorized as personal loans. Other common types of loans include car loans, mortgages, and business loans. More often than not, the interest rates, terms, and conditions vary from one loan type to the other. Always know the right option for you when looking for a hassle-free loan.
3 – The headline rate isn’t the whole story
Whenever you see a large print representative APR you should take with a hint of scepticism. While this rate is often achievable it is often only for bigger loans that are paid back faster than usual. While you can achieve the advertised APR it might not be suitable for you to do so as it might make your cash flow short.
4 – Is a loan the right choice?
While a short-term loan is often the best solution to a short-term cash flow there could be other options open to you that you are not considering. From overdrafts to a credit card and even the bank of mum and dad. If those options are not open to you then a short loan is the best way to go. But it is worth remembering that secured loans are available should you have sufficient collateral
5 – Don’t keep using the same loan site!
Sadly, much like most services in life your loyalty doesn’t always pay and shopping around is the best way to get a short loan. While some will indeed offer incentives to stay with them many do not. If they are not offering you lower APR or longer/larger loans, maybe it is time to shop elsewhere.
6 – Think time, not APR
It’s much more important to make sure you can repay the loan within time or make the payments on the exact day you said you would. Late payments and late short-term loan repayments are what gets people into trouble. So if necessary go a few days over your repay date just to make sure you have the money in the bank to do so.
7 – Do you really need PPI?
If there is something that has changed the way we look at loans it has to be the PPI (Payment Protection Insurance). While some firms might give you the impression that you need to have it, its law that it is not necessary. That doesn’t mean to say its pointless because to some people it can be a real life-saver, just talk to your loan lender about what it offers and then decided if you need it or not.
8 – You have to pick The right lender
As you might have guessed, interest rates for quick loans will vary from one lender to the other. The same is the case with factors such as the eligibility criteria, the terms, interest rates, and the required paperwork, as well as the approval speed. Be sure to do your research carefully before choosing your fast loan lender.
9 – Documentation is always important
No one will give you their money without knowing who you are. Be sure to keep important documents such as your ID, employment details, and financial records in order before making your loan application. This can help reduce the approval time (loan TAT).
10 – Most lenders allow online application
It’s a free digital world. Even in the developing countries, you can easily apply for a quick loan without having to leave the comfort of your home or office. An online application can help save your time, money, and effort.
With the above few tips, fast cash loan application can be a walk in the park for you. Choose the right lender, choose the right loan, prepare your documents, and make your application online as far as your credit score meets your lender’s eligibility requirements. As with all types of loans you should try comparing loans to find the best deal for your needs.