Taking a Close Look at Quick Loans

Quick loans have been a borrowing tool available to consumers for a number of years now. They exist within the short term and high cost borrowing market and are specifically placed to enable short term borrowing. This means they do not compete with larger and longer term repayment options. Examples of such include bank loans and credit cards mainly, which typically allow consumers the ability to borrow in large sums and then make repayments to repay the amount borrowed over a number of years. Quick loans by contrast are much smaller in value and tend to be repaid over a number of pre-agreed monthly instalments. Quick loans were collectively introduced in the early 1990’s and have long established themselves as a much needed consumer borrowing option as far as small time borrowing is concerned. Before quick loans the ability to borrow on a small scale was all but impossible, although consumers could use overdrafts and store front lenders who would often exchange personal goods for cash; borrowing a few hundred pounds in a flexible manner just was not available. This is why over the years quick loans have become a much needed and often used consumer borrowing option.

Taking a Close Look at Quick Loans

Quick loans got their name given the nature in which they can be accessed. Since their introduction over a decade ago, quick loans have been available via an online application form. This means to apply for a small loan of this nature, there is only the need to complete an online process. This therefore means they are different from many other types of borrowing, such as a bank loan which can result in documentation being required by post or details to be confirmed over the phone in some instances. With quick loans the process is different and this is because they are specifically designed to allow discreet and ‘easy’ access to a small loan; should it be suitable for one to be granted.

Although quick loans are designed to be quick; as the name clearly suggests. This does not mean the process of applying and being successful is devoid of checks. In fact, to be successful for a small loan of this nature, the applicant will be subject to a number of checks based on suitability and affordability. Lenders of quick loans are governed by the Financial Conduct Authority also known commonly as the FCA. The FCA governs all lenders and therefore their products and practices. The FCA’s main focus is treating customers fairly and this is reflected in the policies which are set out to quick loans lenders. When assessing the request for borrowing from an applicant, lenders will therefore look to ensure the product and its repayments are suitable. This means making sure the loan and its repayments are affordable and sensible to the individual customers circumstances. In instances where this is not the case it is highly unlikely that the application will later be approved. The checks which are completed are a combination of factors looking to establish this fundamental fact.