When you need cash fast, there are various options you can generally use. Depending on the exact amount you’re looking to get, you might have to deal with certain limiting factors. You’ll also have to put up a relatively good credit score if you want to have access to the best deals. But when it comes to a £1000 loan, you’ll usually find a nice range of options in front of you.
It’s just a matter of picking the right one – and if you can afford the time, you should definitely sit down and think about that carefully. The difference between certain loan deals on the market can be significant, especially if you’re looking for special conditions like a shorter repayment term. Taking the extra time to sift through all offers carefully can be very worthwhile.
The most straightforward option available in most cases is to simply get a loan through a bank. This can be an attractive option for those who have the right qualifications, and if you’re already a customer of a particular bank, they might be able to give you preferential treatment too. Keep in mind that banks tend to be pretty rigid with their conditions though, so you’ll likely not have any room for negotiations.
It’s a different story when you need to borrow more money, but when you’re only walking in for a £1000 loan, don’t expect the conditions to change at all from what’s offered by default. Some banks might also not want to work with you for such small amounts in the first place.
A personal loan is another great option if you have the right circumstances in your life. This refers to borrowing money directly from people around you, and while it might seem like a difficult thing to face people close to you and present them with your financial problems, it’s an option you should not disregard. It can be a much better solution compared to taking out a regular loan, because it can give you more freedom in repaying it afterwards.
Of course, this is a double-bladed knife – if you decide to go for this option, make sure that you’re able to repay the loan in full and on time. Defaulting on a regular loan can have some nasty implications for your credit score, but a situation like this can result in damaged relationships, and this is something you might have to live with permanently. It’s not even rare to hear about such incidents – so make sure that you plan ahead and know what you’re doing.
Payday loans are designed for these specific situations. It’s a type of loan that has relatively low borrowing limits, and is designed to be repaid as quickly as possible. Because of this, payday loans tend to have much shorter repayment terms than standard loans, sometimes down to a few weeks. If you know you’ll have the money eventually and it’s only a matter of withholding until then though, it’s definitely not a bad option to look into getting a loan from a direct payday lender.
Keep in mind that the name can be a bit misleading. Even though payday loans are generally designed to be repaid by the time your next salary comes in, they’re not necessarily tied to any actual pay dates. Quite on the contrary, you’ll often have to work with the dates set by the lender themselves, which might not always be ideal for you. Plan accordingly and understand your financial situation before getting yourself into a loan.
Internet lenders are also becoming increasingly popular. They can often provide services of the same rank as ordinary lenders, and in some cases might even be able to give you better terms. That’s because most Internet lenders tend to operate with less overhead than their other counterparts, allowing them to be much more free in determining their conditions and configuring their deals.
And while that’s not always the case, it’s definitely a sector of the market that you should not ignore. Considering that you likely have easy access to the Internet, it costs you practically nothing to go online and see what you have available. The best part is that you don’t have to limit yourself to lenders operating in your local area. Internet lenders can work with you remotely from quite afar without any issues.
A credit card is technically just another line of credit. With that in mind, if you have one already open, you should do your best to use it wisely in these situations. It can allow you to borrow money on short notice quite freely, and the repayment terms can be attractive as well. However, credit cards can also come with a few strings attached that should definitely not be ignored. Most importantly, failing to repay the debt on time can have some dire consequences, especially if you’re already behind on that line of credit.
Most credit cards are designed to be used for ongoing revolving payments, and aren’t actually useful as tools for long-term loans. But when it comes to a small sum – like a £1000 loan – they can actually be pretty convenient. It’s not a good option to take out a new credit card at this point though – just use your currently owned ones. There are some rare exceptions, but it’s generally not a viable option in most cases.
You could also talk to your employer. Many companies can be quite understanding in situations like these and may provide you with special advance payment terms to get your hands on your money faster. Keep in mind that this might incur some penalties – the company still has to go out of its way to do something unusual in its payroll, and they will not have access to their money at the time they need it.
But in most cases, if it’s just a one-time situation, you should at least give it a try and see if you can’t get any special terms on your next salary payments. In the worst case scenario, your employer will at least be aware that there’s something going on in your life and they will be more understanding in general.
Understand the difference between a secured and an unsecured loan as well! This is an important consideration to make well before you’ve actually taken out any money. Secured loans can be easier to obtain in most cases, but they can also bring about a lot of trouble in your life if you fail to repay them on time. On the other hand, unsecured loans are generally only available to people with better credit scores and other similar circumstances. If you do have a positive score and want to take advantage of it, now’s the right time.
Pawning is also an option that’s always there, even though most people don’t really consider it that much. It might seem strange to walk into a pawn shop and try to get money for one of your possessions, but in the end it’s not too different from a regular secured loan. The only major difference is in the terms that you’ll get – pawn shops tend to be less favourable than regular lenders, and you’ll not be able to get as much money as you normally would with another institution. You might also have to pay it off more quickly compared to working with a regular lender.
And in the end, the consequences of defaulting on a pawned item are losing it completely. If it’s something of relatively little value in your life, that’s one thing – but if the only possessions you can pawn are more expensive and/or precious, then it’s a slippery slope that can quickly lead to trouble.
A short-term loan is still a loan, and it’s not something you should treat lightly. Failing to repay it on time can have some serious consequences on your finances and your overall personal situation, and it’s the last thing you should allow to happen on top of an already troubled state. Try to think clearly in terms of how much you can pay back and how quickly you can realistically do that, and never overestimate your own abilities in this regard.
The main mistake most people tend to make when it comes to loans – especially small and short-term ones – is to bite off more than they can chew, convincing themselves that they’re just going to endure the difficulties that come afterwards. That rarely works out though. If you are in a situation where you need to get a loan in the first place, then you’re already in a troubled state. Don’t make the mistake of thinking that you can decrease the quality of your living conditions even further just for the sake of taking out a loan. It will only make things more challenging later on, and it may even turn a relatively simple situation into a nightmare with no way out – all because you were not careful in the first place!