City Reads

Another finance blog.

Which are the Best Cash Loans for me?

If you are looking at getting a loan then you might want to compare the different types to see which might be the best for you. You may have already decided that cash loans sound good, but you will need to then compare all of them to see which are the best. This can be a bit tricky, bit if you have the right approach it makes it much easier.

What do I need?

The first stage is to work out what you are looking for precisely. You might feel that by identifying that you want a cash loan, then you have already done this. However, cash lenders do differ and so you need to think about what might make one stand out over another.

Many people would probably think that it is the cost that is the most important thing for them. They will feel that if they find a loan that is really cheap then this will be the very best one for them. Of course, you never want to pay more for something than necessary, but you want to make sure that you are getting good value for money. For example, when you are buying food, you may choose the very cheapest of items as you might feel that getting something a bit dearer will provide you with better quality, will taste better and you are prepared to pay a bit more. The same is true for all goods that you buy and will also apply to services. So, think about whether there are some things that a lender might offer that would make you prepared to pay a bit more for them.

It is also wise to think about the fact that often when we compare process of lenders, we do not do it properly. We are encouraged to compare them by the interest rate that they charge. If the is the APR (Annual Percentage Rate) then they may add other charges as well, so we may end up paying more than that amount. However, if it is the AER (Annual Equivalent Rate) then this includes any extra fees and so we can compare these likes for like. It is a better idea to compare the actual cost in monetary terms so that we know what we will be paying in pounds. This helps us to not only compare more easily, but to also know what will be paying in costs so that we can decide whether we are happy to pay that much.

It is also worth thinking about other things as well as cost, such as what the lender is like, whether we like the repayment schedule and things like this so that we can work out whether we think they offer good value for money.

What is available?

It is a good idea to then take a look at what cash loans are available to us. We may find that there are quite a lot and we will need to think about whether we feel that they are good or not. To do this, we will need to think about whether they will fit our criteria or not. This should be quite simple if we have a list of what we are looking for in a loan.

To find what loans are available you should just be able to use a search engine and that will allow you to see which companies are offering them. This can seem long-winded though, but there is not really a good short cut. You could try asking people you know if they can recommend a lender, looking at review sites and things like that but you will only be finding out what other people like and dislike. They may have completely different requirements to you and so what they think is good may be totally different to what you think is good.

You may also find that there is bias in some sources that make recommendations. This is unlikely to be true if you ask people you know but if you look at review websites, they may have other motives. It might be that they get paid commission on leads they get as a result of making certain recommendations so they may be biased for that reason.

Which is best?

Choosing the best is an individual choice based on our personal opinion. This means that it can be quite tricky for anyone to say which the best loan is for everyone, but they should be able to identify which is the best for any one person. As we all have different opinions on what will make a good loan then we will not agree on who is the best lender.

This makes it difficult in a way because we have to do research to find out which is the best for us. However, what it also means is that there is competition within the market which should help to keep prices down and service good.

Can I Use Online Loans to Pay for Groceries?

There are some loans that you can only use for certain purposes and there are some loans which are best for using for certain things. Therefore, if you want to buy something with money from a loan, then you will be very justified in asking yourself the question as to whether you are using a loan that is suitable for this purpose.

What should online loans be used for?

There are some loans which are specifically designed for certain uses. For example, if you get a student loan, then it should only be used for paying for a university course and for living expenses while at university. If you get a mortgage then this money can only be used for buying a house. This is the case for a few loans.

With an online loan, there is no specified use. The lender will not ask what it is being used for or offer any suggestions as to what you might want to use the money for. Any money that you borrow is yours to do with what you wish. However, you may find that you are limited in what you can use them for because of the nature of the loans.

What are online loans best used for?

Online loans came about due to the fact that it was observed that those people with a poor credit rating were not able to easily borrow money. This meant that they struggled with certain things which those with good credit rating did not. Therefore, lenders decided to help them out by allowing them to borrow money regardless of their credit rating. It was also recognised that most of these borrowers needed the money for emergencies and therefore they were arranged very quickly.

This could mean that you would conclude that online loans were best for borrowers that need money very quickly and have a poor credit record. It is true that they are suitable for these types of borrowers but it is worth thinking a little beyond this.

When we are looking for a loan we should be thinking about what our requirements are and then we will be able to match those up with the best lender. So even if you do not fit into the category of someone with a poor credit record or needing money fast, it could still be the case that these loans will work well for you.

As we are all different in our requirements, whether this type of loan will be best for us will depend. It is not really easy to say that online loans are best for a particular purpose. However, there are a few features of these loans which could determine this a little.

With online loans, you will tend to borrow between £100 and £1000 and therefore this will limit you in what you can afford to buy with the money. You will not be able to buy a house but you will probably have enough to cover a utility bill or a new washing machine. A first time borrower may not be able to borrow as much money. This is because a lender may want then to show that they can repay a small amount before they are willing to lend more.

You may also be limited by how much you can afford to repay. We often do not think about this, but it is a good idea to find out how much we will be expected to repay and then decide whether this is an amount that we can afford. The more we borrow, the higher the repayment and so this could limit how much we will be able to afford to repay. It can be a good idea to actually take a look at what you would normally be able to afford in a typical month, by looking at past bank statements and then you will know for sure. It can be tempted to just assume it will all be okay, but you really need to do this step as otherwise you could find that you will be in trouble with repaying and struggle to do it. This will mean that you will end up having to pay extra fees and this is not good. No one wants to have to pay more than necessary for anything and if you pay these fees for the loan you will be doing just that.

This means that although there is no restriction on what you can spend the money on, you may be restricted by how much money you get and that will mean that you may not be able to afford to buy everything that you want with this sort of loan. You may also be restricted because you cannot afford to repay all that is expected of you and so make sure that this is checked out as well.