When people need a small personal loan it is usually because they have some kind of financial emergency that needs to be solved before the next time they get paid. This could be anything from the need to pay a bill that is due tomorrow to having the cash on hand to fix your car so that you can get to work.
Fortunately, if you find yourself in this kind of situation these days there are lenders who can approve you for, and fund, a small loan within just a few hours, sometimes less, even on a day when your local bank’s High Street branches are closed.
How Can these Lenders Get You Cash So Quickly?
Many companies specialise in fast cash loans in the UK these days, but just how do they manage to get money into people’s bank accounts in as little as 3-4 hours?
If someone writes you a cheque it is normal that it takes a few days to clear and that you will not be able to access all the funds from it right away. And if you apply for a personal loan from your bank and are approved it can take days, if not weeks, before you receive your loan funds.
With all of this in mind, many people wonder just how lenders who offer fast cash loans manage to get the money into your bank account in as little as 15 minutes, even at weekends or on Bank Holidays in some cases.
The answer is that these companies send your money via instant wire transfer, something that has been made possible since the advent of the Internet. The transaction can be made in just a few minutes from the lender’s end. The only delay you may experience is if your bank does not post these transactions automatically.
Some banks only post transactions once a day – sometimes at midnight, sometimes first thing in the morning. In addition, some banks do not post deposits to an account on the weekends so before you apply for a fast cash loan UK you should find out what your bank’s policy is so you know when you will actually be able to spend your loan funds.
Who Offers These Fast Loans?
Fast loans in the UK go by a lot of other names as well – short term loans, bad credit loans, payday loans and tenant loans to name just a few. They are offered mainly by private lending companies and are often available to people whose credit situation would not be good enough for them to get a loan from a traditional bank or building society.
These types of loans have their critics, mainly because the interest rates work out to be quite high when compared to more traditional loans. Higher interest is something unfortunately that those with bad credit have to expect if they are approved for a loan, as any lender will consider them a higher risk.
Fast cash loans tend to become problematic if they are not paid back when the repayments are scheduled. If a borrower pays back the loan according to the agreed-upon schedule often the interest and fees charged are palatable.
The difficulties begin when people extend their loans and begin occurring hefty additional fees. Most reputable fast cash UK lenders these days limit the number of times you can extend a loan to help people avoid falling into this kind of trap.
