Most people need an emergency cash loan to help with those unexpected expenses that crop-up from time-to-time. The car may break down meaning that it is impossible to get to work from a rural location or a wage may be paid late leaving nothing to pay the rent or mortgage. A no credit-check, quick cash advance may provide the answer. It is a short-term loan, aimed largely at those with a bad credit rating, to help a struggling consumer out of a financial hole. The most common emergency cash loans include pawnbroker, logbook and Payday loans from the likes of https://paydaywizard.co.uk.
Advantages of Emergency Cash Loans
- Essential bills. A quick cash advance can help to pay bills and expenses when personal savings aren’t available. For example, paying the rent could prevent eviction.
- Bad credit rating. A short-term loan is available with no credit-check which means that it is a suitable way to borrow money for those with a bad credit rating.
- Quick cash advance. A short-term loan is often made available within 10-15 minutes. A traditional bank loan can take weeks to be approved.
- No credit-check. There is no credit-check which is helpful for those with a bad credit rating or who don’t want lots of credit searches showing on their credit report.
- Unable to borrow money. An emergency cash loan is useful to those who wouldn’t otherwise be able to get a short-term loan.
Disadvantages of Emergency Cash Loans
- High interest rate. The higher risk of default on an emergency cash loan means that it costs more to borrow money than for good credit customers.
- Financial difficulties. Whilst a quick cash advance can help someone out of a tight spot, the high APR on a Payday loan leaves less money for household bills for the month after.
- Impulse buying. An emergency cash loan may feel like easy money and encourage impulse buying. Whilst paying the mortgage is essential, going on holiday isn’t.
- Personal debt. A quick cash advance is yet another form of personal debt. Consumers already struggling with credit card debt will find that a higher percentage of income goes towards debt repayments each month.
- Collection agencies. Failing to pay back the debt will lead to personal debt spiraling out of control due to the high APR charged to those who borrow money. It can lead to pursuance by collection agencies.
An emergency cash loan should be considered a way of dealing with a one-off, unexpected outgoing that cannot be covered by savings. A quick cash advance or any no credit-check loan is ideal for those with a bad credit rating. Choosing to borrow money with a short-term loan attracts a high APR; this will leave less money available to cover household bills the next month.