It could be for any reason, for example a large bill or a desperate need for a new car, but there might come a time that you need a sum of money quickly. A quick decision loan is an option available to most people, but before you sign up what is there to understand?
What is it?
An unsecured term loan will get you the money you need with a shorter paying back period than most secured loans. You can also get one if you are a tenant, for example.
A quick decision loan isn’t a payday loan
Many people incorrectly group quick decision unsecured loans with payday loans, but there are many differences between the two. Just because you get a decision quickly – it doesn’t mean it is a payday loan. An unsecured loan will generally be for a longer length of time than a payday loan, for example 1-3 years, whereas with the latter the maximum tends to be 30 days.
With a payday loan the APR you will pay is astronomical and can be as much as 3,000%. Scaled down, this means you will pay a great deal more than you borrow, even for a small amount. If you need to borrow a fairly large amount of money then other loan options are a safer bet.
What can you use the money for?
If approved, you can use the money you have borrowed for anything. More often than not it will be to help pay for a cost that had not previously been budgeted for, such as a particularly high bill or a car.
Always ensure that you can afford to repay any money that you borrow. If you are in doubt about any specific loan, always seek independent financial advice.