It is always worth thinking about whether you should be using certain types of loan. This is because there are always advantages and disadvantages of every decision that we are making and we need to consider both. It can be too easy to just focus on the advantages but it is important to make sure that we see the other side of things too.
Advantages of Urgent Loans
An urgent loan is a way to get money really quickly. It is a payday loan and that means that you will normally be able to borrow between £100 and £1,000 and some lenders will be able to get the money to you within a few hours, although this will depend on the lender. Some lenders will also be able to offer money at weekends and overnight which means that you can get it even outside of normal banking hours. As the lenders do not worry about your credit score, it means that the loans are available to most people. This means that anyone who need money in a hurry is likely to be able to get the help that they need by taking out a loan like this, when other lenders will not be keen to let them have anything. The loan also gets repaid very quickly. You will need to repay it when you next get paid and this means that you will be able to clear the debt very quickly. This can be really handy for anyone that does not like to be in debt for very long. The amounts that you borrow are also small, between £100 and £1,000 which means that you have a better chance of being able to afford to repay compared with larger loans for much bigger sums of money.
Disadvantages of Urgent Loans
This type of loan can be expensive. This is because the lenders are taking on a high risk as they lend to those with a poor credit record. Therefore, they charge extra money in case the borrowers do not manage to repay the loan. However, you may feel that it is worth the cost because you need the money but you should make sure that you find out how much the cost will be so that you are prepared. It can be easy to try and guess the cost, but as most loans are charged using a mix of interest and fees it can be complex. It is therefore wise to ask the lender how much the cost will be so that you are clear on this. You need to work out whether you will be able to afford it because if you do not repay in time there will be extra fees to pay. The repayment is in one lump sum which means that it will be repaid quickly but does also mean that you will need to find a lot of money in one go. This does go out on the day that you are paid which should help with this but you need to make sure that you will have enough left to pay for everything that you need. You will also find that you can only borrow between £100 and £1,000. While this has the advantage of being easier to repay, it could mean that you will not be able to borrow enough for what you need. You may even find that if you are a new borrower, then the lender might want to try you out with borrowing a much smaller amount before they will then lend you more money, so it is possible that you may be even more likely to not get enough.