If you require money for some emergency, then you have the option of taking out unsecured cash loans. These may be comparatively easier loans, still there are some pitfalls associated with them. Therefore, you must be extra cautious while going for the option.
These are especial loans for the salaried people. They can borrow £100 to £1500, without pledging anything as security. The only basis of the approval is that you must be in a job for at least past six months. The lenders may ask you write a post-dated check, which should contain the loaned amount and the lenders' fee on it. On the due date, if you do not repay the loan in cash, though your next paycheque, the lender will submit the cheque in your bank to get the loan back. The loan comes within 24 hours in the borrowers' bank account.
The loan amount depends on the monthly salary you draw. The approval comes for two weeks only. However, you can repay the loan in a month as well. Before applying, you must know that these loans carry very high costs for the borrowers.
Unsecured cash loans carry a high interest rate, which is many times higher than on any other loan. Often, the rate goes up to 30 percent, meaning that on each £100 borrowed; you will make a payment of £30. The interest rate goes higher once you have extended the repayment. Therefore, borrow only smaller amount.
A bad credit history is not a hurdle, as the lenders approve the loan without any credit checks. An advantage is that your credit rating can improve substantially once you have made the repayment on due date, without extending it.
Take the benefit of the intense competition amongst the lenders. Some of them may be offering unsecured cash loans at comparatively lower interest rate. Make a good search for such offers. Avoid extending the repayment, as it may make the loan a huge burden.
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