Cash Advance Payday Loans Loans

Despite careful financial planning, there may be times when a cash advance loan is needed. The majority of cash advance loans are used to cover emergency expenses and unexpected bills, as a short-term form of borrowing.

What is a cash advance loan?

Cash advances are usually borrowed to cover emergency cash situations, such as a broken boiler or an unexpected car repair bill. There are many situations which can put pressure on our finances and cash advance lenders aim to quickly provide the cash needed. A cash advance is designed to ease financial stress by providing the funds needed to pay essential bills. A Cash advance is another way of describing payday loans, so borrowers are required to repay the loan in full on their next payday, Rather than leaving bills unpaid or falling into an expensive unarranged overdraft, a cash advance could provide the breathing space needed until your next payday.

How much can you borrow from a cash advance?

The amount you can borrow from a cash advance will largely depend on the affordability of the repayments. If you choose to take out a payday loan as an advance on your usual monthly salary, the amount you could be eligible to borrow will depend on your take-home pay and monthly outgoings. It is important to ensure the amount borrowed can be comfortably repaid on your payday, without causing financial difficulties the following month. This means that payday loans are typically taken out for small amounts of just enough to cover expenses until the next payday. Instead of trying to borrow as much as possible, you should only apply to borrow an affordable amount which covers your requirements.

Take a look at your budget and calculate how much you can comfortably repay each month; this will help you decide on the ideal loan term length. Due to the requirement to repay a cash advance on the borrowers next payday, the amount borrowed tends to be relatively small. In situations where a larger amount is required, an instalment loan with a longer repayment period can provide smaller monthly repayments. However, it is worth bearing in mind that increasing the loan term could increase the total interest paid overall.

Can I get a cash advance?

If you have struggled in the past to find a traditional loan from a bank or building society, there are alternative lenders which may consider lending you a cash advance loan. Although credit checks are an important part of assessing your application, lenders will also consider the affordability of your cash advance. If you meet the lenders' eligibility criteria, such as being aged over the age of 18, employed and a UK resident, your application may be considered despite having a poor credit history. One of the factors which are most important to many cash advance lenders is the affordability of the loan.

If you have a poor credit score but can demonstrate that you can budget effectively and the loan repayments are affordable, your cash advance could be considered for approval. Responsible lenders will only lend amounts which are affordable for your individual budget, as they do not want you to fall behind with repayments and fall into financial difficulties.

Do cash advance loans affect your credit?

Every lender which is authorised and regulated by the Financial Conduct Authority will be required to carry out a hard credit check, as part of their affordability checks. If you want to reduce the impact on your credit score it is advisable to avoid making multiple loan applications in a short space of time. If you make multiple applications in the hope of finding a loan, the hard credit searches will be recorded on your report and your credit score could be reduced. If your application is approved it is important that you keep up with repayments, as missed payments could be reflected on your credit file.

These negative marks on your credit report could impact your credit score, as they may indicate that you are not budgeting effectively and are not committed to repaying the loan. Therefore, before taking out any forms of credit it is always important to ensure you can comfortably meet the repayments. Although cash advances can provide borrowers with much-needed cash before payday, they should be borrowed with caution.

They are not designed to be long-term forms of borrowing and borrowers should avoid overstretching their finances. The requirement to repay the loan in full on the borrowers next payday could cause financial shortfalls if an unaffordable amount is borrowed. If you know that the cash advance you require will not be affordable in a single monthly repayment, a loan which offers lower monthly repayments over a longer period of time could be more suitable.

Do CashFlex offer cash advances?

Here at CashFlex, we have partnered with a panel of traditional and alternative lenders which specialise in offering flexible short-term loans. Although it is not possible to apply for cash advances in the form of payday loans through our website, we can help you find competitive short-term loans. Our lenders offer loans from as little as £100 up to a maximum of £5,000, with a variety of repayment options. For example, a loan of £1,000 will be offered repayments lengths of 3, 6, 12, 18, 24 or 36 months. We understand that when you need a cash advance the application process needs to be quick, which is why we have created our simple online application form. Simply provide your personal details, employment information, average monthly expenses and your loan requirements.

We will then send your application across to up to 40 lenders, which will complete a quick soft search of your credit file. There is no impact on your credit score and the information will be used to quickly assess your eligibility for a loan. As soon as a lender indicates that you are likely to be accepted for a loan, we will redirect you to their website. They will ask for some final details and a quick hard search of your credit report will be carried out, which will leave a single mark on your report. If successful, the loan could be issued within minutes*, however, the availability of the funds will depend on the processing speed of your bank.

If you are looking for a cash advance, it is important to borrow responsibly to avoid falling into further debt. This means only borrowing what you need and only borrowing an amount which you know you will be able to repay. If you are struggling with your finances and would like to discuss your situation with an impartial organisation, there are several free options available including, The Money Advice Service, Step Change, PayPlan, National Debtline, the Debt Advice Foundation and Citizens Advice.