If you’re like most Americans, you’ve run into a situation where a little extra cash could go a long way. We all know what it’s like to get blindsided by unexpected car repairs, medical bills, school costs, or home repairs. It’s not cheap, and it’s not a fun experience. If you don’t have much money saved, you may be wondering how you’ll afford these expenses or find the fast cash loans or lenders you need.
If this sounds like your situation, then you may be considering all sorts of options and lenders for getting urgent cash. In today’s world there are many ways to get the rapid cash you need, from online lenders to storefront options. If you need money now you could get money from a family member or friend, pick up extra shifts at work, or start working a side job for some fast cash. But if these options aren’t an option for you, then you may be considering a payday or quick cash loan. While these types of lenders might be a good way to get the speedy money you need, there are still things to watch out for with instant cash loan options.
Credit is here to help you learn the ins and outs of payday advances and fast cash loans, how they work, and what to watch out for when you’re shopping for one, whether it’s online or in person. Read on, and find out how Credit can help you no matter what your credit score or financial situation is.
What Is A Quick Cash Loan?
Step one in your journey is learning what qualifies as a “quick cash loan.” This is a term that can encompass several different kinds of loan products and lenders. Since each type of loan has its own set of conditions, interest rates, and repayment terms you’ll need to be ok with doing plenty of research to figure out which of several options is best for you.
The most general definition of a quick cash loan is: Any short-term personal loan product that offers a fast application, and provides funds to the borrower within a short amount of time from when they’re approved.
You may have even used a quick cash loan before and not realized that’s what it was, as they go by many names. That being said, they’re almost exclusively personal loans. This means that they’re taken out by borrowers who intend to use the money for personal expenses rather than business purposes. Here’s a list of some of the most common reasons borrowers apply for instant personal loans:
- Vehicle repairs
- Home/appliance repairs
- Children’s school costs
- Medical expenses
- Large personal purchases
- Funeral costs
- Moving expenses
- Other emergency expenses
Quick cash loans are often short-term loans, meaning the repayment period does not last very long. Depending on the type of fast cash loan you choose and the loan amount, the repayment period could last anywhere from a week or two, up to several months. This is just one reason that they’re generally used by people who need a fast cash advance because they find themselves in an emergency financial situation.
How To Get A Quick Cash Loan
Applying for a quick cash loan is similar to how you would apply for many other financial products from traditional banks. First, you’ll need to submit an application. Many fast cash lenders have made the process even quicker by now offering completely online applications. When researching lenders, check their website to find out if you can apply online. Many online loans offer quick and easy loan applications, so you can be approved and get your money right away. Getting loans online is the preferred method for many borrowers who need cash fast.
If the lender doesn’t offer an online application, you’ll likely have to go to a physical storefront location to submit a paper application. If you want to avoid long lines and lengthy paperwork, find a reputable lender that respects your privacy and offers an online application, like Credit. Regardless of what kind of application you fill out, you’ll be required to provide a lot of personal financial information. When lenders don’t ask for much information, it could be a red flag that they make more money when you default on your loan.
Once you’ve submitted your application, the lender will review it and decide whether or not they can provide you with a cash advance. There are many factors involved in whether or not you’ll get approved. Lenders will likely consider your employment and income status, your current bank account information, your credit history, loan amount, and in some cases a credit check may be necessary. If you have poor credit from a lot of debt from credit cards or other loans you may not be approved, as this can affect your credit score and the lender will be concerned that you won’t be able to repay the loan.
If you’re denied the loan, you can usually apply again after a certain amount of time. But unless your financial situation changes, it’s not likely that you’ll get approved by the same lender. If you’re approved for a quick cash loan, the lender will ask you to sign a contract that lays out all of the terms and conditions, and rates and fees. Make sure to read this thoroughly so you know exactly what you’re in store for. It’s wise to only take out cash loans online when you’re positive you can afford to repay them.
Once approved, the lender will provide you with the funds. A lot of lenders now use direct deposit to send the funds right to your bank account. As this is the easiest way to get money from lenders. Once you have the funds, you’re free to use them for whatever personal expenses or bills you choose. The next step will be to start making payments on the loan, on the agreed upon repayment dates set forth in the loan terms. Once you’ve completely paid off the loan, the contract is over.
What You Need To Know About Quick Cash Loans
Quick cash loans come in many different forms. And all of them have specific rates, terms and conditions, whether it’s an online loan or in person. It’s important to know the subtleties and distinctions between them so that you get the best fast cash loan for your specific situation. Below is a brief breakdown of the most popular types of quick cash loans out there:
Payday Loans – Used for short-term financial needs, a payday loan is a small-dollar loan that borrowers use for emergency situations, or to make ends meet with a short term loan until their next payday, hence the name. It’s an unsecured loan, which means that lenders won’t require any collateral, and only rely on the borrower’s promise to repay. Payday loans are usually for small amounts, ranging up to several hundred dollars. Depending on the lender, they can have extremely high interest rates and they’re usually for borrowers with a subprime (low) credit score, which sometimes necessitates a credit check during the application process. Remember that different types of credit checks may impact your credit score. This is one instant loan that can lead to more financial harm than good. Finding a lending company that offers lines of credit may be a better option.
Title Loans – A title loan is another example of a quick cash loan used for short-term financial needs. These loans are different than a payday loan in that they may not run credit checks but they require the borrower to offer up their vehicle title as collateral in case they aren’t able to repay the loan. The amount of money you can get depends on the value of the vehicle in question. But if you aren’t able to repay the loan, the lender is allowed to seize the vehicle and sell it to recoup their loss. Be careful with title loans, as risking your vehicle may not be worth the short-term cash you get.
Personal Installment Loans – These loans are unsecured loans that offer an alternative to borrowers who would normally only qualify for lower credit score payday and title loans. They offer a chance for borrowers to get more cash (up to several thousand dollars), and repay it over a longer period of time (up to a couple of years in some cases). The interest rates for personal installment loans are usually significantly lower than that of payday loans. If you’re searching for a more affordable personal loan than a payday loan, this is a good place to start. These are quick loans that tend to be much safer and more affordable than payday. And the best part is that you can find many of these lenders online.