4 commonly asked questions about quick cash loans
It is nearly the end of the month. An emergency repair work just wiped out the remaining cash reserves. The paycheck has not come in yet, and there is rent to be paid as well. What does a person do? In such a case, a quick cash loan can come in handy. A quick cash loan is a short-term loan of a small amount that can help the borrower tide over the remaining days of the month until their paycheck comes in. It can be quite easy to apply for quick cash loans. However, it is equally difficult to pay them back since the interest rates are quite high. For example, the interest would be around $80 for every $400 borrowed. The interest rate increases every time the loan is renewed. It is usually recommended to pay back quick cash loans within a week or two. Read on to know more about quick cash loans.
What factors should one check before applying for quick cash loans?
- Interest rate
The interest rate on quick cash loans offered by different lenders will be different. The rate of interest will vary depending on whether it is a secured or unsecured loan. Since the rates are usually competitive, it is best to compare before applying for a loan.
- Loan terms
Most lenders have a loan term of one year for quick cash loans. Some lenders may have loan terms of more than a year.
- Additional charges and fees
Along with interest rates, many lenders may require borrowers to pay monthly fees or financing fees. Other charges include fees for defaulting on payments, late payment fees, or missed payment fees. Check the various charges applicable before applying for a quick cash loan.
- Lender’s reputation
Check whether the lender is reliable. The customer service of a lender is a great way to find out whether a lender is responsive and cooperative with customers. Ensure to read the terms and conditions applicable to the quick cash loan.
What are the various criteria to be fulfilled to get quick cash loans?
The applicant for a quick cash loan should be at least 18 years old. The age limit may vary according to the state.
Most lenders require applicants to have permanent employment. Some lenders may give out quick cash loans to people who are part-time employees as well. A few lenders may consider applicants who do not have any form of employment.
To be eligible for a quick cash loan, an applicant needs to have a steady income. Some lenders require applicants to have a minimum monthly income, while others may require applicants to show proof of at least three months of steady income. Payments received from welfare may also be considered as income by some lenders.
- Credit history
For quick cash loans, many lenders often do not have any criteria for credit history. Applicants with bad credit as well as those who have filed for bankruptcy can apply for quick cash loans. However, lenders may impose certain terms and conditions in such cases.
How to ensure that a quick cash loan is approved faster?
- Find out the eligibility criteria
Different lenders have different eligibility criteria. To ensure a quick approval process and avoid rejections, it is necessary to find out which criteria the borrower meets for a particular lender.
- Read through the credit history
Knowing one’s credit history is essential to understand the loans for which a borrower is eligible. Also, the lender may have different fees and charges depending on the borrower’s credit score. Hence, it is necessary to keep track of one’s credit score before applying for any loan.
- Less number of applications
Each application for a loan leads to an inquiry on the borrower’s credit report. Too many applications can have a negative effect on the borrower’s credit score. It is recommended to use a lender-matching service that will bring up the most suitable lenders by matching the borrower’s eligibility criteria without negatively affecting the credit report.
What are payday loans?
- Payday loans are short-term loans of small amounts, ranging from $300 to $1,500. They are usually equivalent to the minimum basic pay of the borrower. In most cases, such loans are unsecured loans. So, the borrower does not need to provide collateral.
- Payday loans are also known as payday advance, payroll loan, salary loan, small-dollar loan, cash advance, or short-term loans. It is called a payday loan because borrowers may need to make an emergency purchase for which they do not have sufficient cash and their payday is still far away. Quick cash loans and payday loans are, thus, the same.
- Payday loans are sanctioned quickly to the borrower over a couple of days, and the borrower is expected to pay it back quickly as well. The rates of interest are quite high compared to conventional loans.
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