If you are looking for a quick cash loan for up to just £750 that you can pay back quickly then you may already be considering looking at same day cash advances as an option. These loans come with many advantages:
They do not need security so you don’t have to be a homeowner to take one out.
They look at your income as the measure of whether you can repay a loan not your credit history so they can be an ideal solution for people with historical bad credit problems.
They can allow you to borrow small amounts of money.
They are meant to be repaid quickly (i.e. when you next get paid) so you won’t be taking on a long term debt.
They can be arranged in just minutes online with access to same day cash in many cases.
But, a lot of people are worried about taking out these kinds of loans because of the higher APRs that they are given. An APR for a same day cash loan may be a lot higher than that given to a standard personal loan. But, the advantages of taking out this kind of short term loan may well outweigh this APR figure.
At the end of the day an APR shows you what you will be charged for your borrowing over the course of a year. If you are an average payday loan applicant then you’ll be borrowing money for an average of just 31 days. So, looking at a figure that applies to 365 days may not be the right way to compare loans here.
The fact is that most same day cash loan fees are charged on a flat rate structure. When you borrow money here you are told what your flat fee will be on your loan. So, for example, if you borrow £100 with shortloans.co.uk then you’ll pay back £125 on your borrowing provided that you repay your loan in full come next payday.
This £25 gives you access to a quick and small loan to help you out in tighter months. Once you’ve paid back what you borrow plus the flat fee interest you’ll once again be debt free. This kind of loan simply isn’t designed to be taken out for months at a time.
So, if you use these kinds of short term cash advances sensibly on an occasional basis then the APRs that are given to them are not so much of a consideration. Here, the advantages of getting this kind of payday loan to help you out when money is tight outweigh the disadvantages for many people.
You should, however, use same day cash advance loans sensibly. It is often possible to ‘roll’ these kinds of loans over from month to month rather than repaying them come your next payday. If this happens to you then you should probably look at other lending options to keep your costs lower. After all, the kind of flat fee structure used in this area of the lending sector is most cost effective when you stick to the original regulations that given these loans and not for long term financing.