4 questions to ask before applying for a quick cash loan
Quick cash loans, which are sometimes also known as payday loans, are short-term loans of amounts varying from $50 to $1,500. Some lenders may also hand over a higher amount based on some terms and conditions. The maximum and minimum limits of quick cash loans usually differ from state to state.
Quick cash loans can be useful in situations where emergency funds are required to pay medical bills or make urgent repairs to one’s house or car. These loans are disbursed immediately, and the application process is quite simple and easy, especially for online lenders. The only drawback is that these loans have high interest rates. Lenders may also charge additional fees such as late payment fees, monthly fees, or financing fees. However, in the case of an emergency, the benefits may far outweigh the only drawback of these instant loans. Here are a few things that a borrower should know before applying for quick cash loans.
How to apply for quick cash loans?
- Applying for a quick cash loan is quite simple. Most lenders have online application forms that require essential details. Once a prospective borrower fills in these details, a lender carries out a few checks. The application is then processed, and the quick cash loan is approved.
- Most applications require details such as the complete name of the applicant, age, residential address, type of employment, sources of income, type of income (employment or benefits), the frequency of income, household expenses, bank account details, and so on. The necessary details may vary from lender to lender.
- Before approving a quick cash loan application, lenders will conduct a series of checks. These checks include a verification of the borrower’s age, citizenship, and employment status. Lenders will also conduct credit checks, which may affect the borrower’s credit file. Affordability checks are also carried out to determine whether the borrower will be able to pay back the loan on time.
What are the benefits of quick cash loans?
- Flexible repayments
Most of the quick cash loans are approved based on the borrower’s ability to repay. The lender will verify the borrower’s income, frequency of pay, and date of paycheck receipts to determine the loan amount that the borrower is eligible for. The lender will offer flexible repayment plans accordingly. Based on when the borrower gets paid, they can opt for different repayment options.
- The simple process of online application
Numerous quick cash loan providers are now online, and this has streamlined the application process and made it quite simple. The verifications are done online, and loan approvals are received immediately.
- Loan approvals even with bad credit
One of the biggest advantages of quick cash loans is that people with bad credit can also get approvals. Some lenders even give quick cash loans to people who have filed for bankruptcy. In such cases, however, the terms and conditions might be rigid.
Are quick cash loans legal in all the states?
- Not all states allow lenders to give out quick cash loans. 12 states in the country have imposed a complete ban on quick cash loans. These states include Arkansas, Arizona, Connecticut, Georgia, Maryland, Massachusetts, New Jersey, New York, New Mexico, Pennsylvania, North Carolina, Vermont, and West Virginia.
- In other states, quick cash loans are completely legal. These states include Alaska, Alabama, Florida, South Carolina, Tennessee, Missouri, Delaware, Rhode Island, Wisconsin, South Dakota, North Dakota, Wyoming, Idaho, Utah, Nevada, and Oregon.
- In the remaining states, quick cash loans are legal, but the process is heavily regulated. These states include California, Washington, Montana, Colorado, Nebraska, Kansas, Oklahoma, Texas, Louisiana, Iowa, Minnesota, Michigan, Illinois, Mississippi, Kentucky, Indiana, Ohio, Michigan, Virginia, New Hampshire, and Maine.
Which are some of the popular quick cash loan lenders?
- Check Into Cash: One of the oldest lenders of quick cash loans, Check Into Cash approves and disburses funds within a couple of days after loan application. Borrowers can get loans of up to $1000. This lender also offers title loans, installment loans, and lines of credit.
- Speedy Cash: Borrowers can apply for quick cash loans online, in-store, as well as through phone. Speedy Cash offers quick cash loans starting from $255 and going up to $2,500. The maximum amount may vary depending on the state.
- CashNetUSA: Prospective borrowers can get quick cash loans on the next day of applying for the loan. This lender gives quick cash loans of up to $1,800.
- Approved Cash Advance: This lender is available only in a few locations. These include Alabama, Michigan, Oklahoma, Mississippi, Virginia, and South Carolina. Quick loans between $50 to $500 are given out immediately once the loan application is processed and approved.
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