5 things you need to know about fast cash loans guide, Money access advice, Finance lending tips
5 Things You Need to Know About Fast Cash Loans
25 Jan 2022
According to a Bankrate survey, only 40% of Americans have savings to cover the $ 1,000 unforeseen expenses. And 60% of them would have to fight for money if they had to visit the emergency room, replace appliances, or get their car repaired. Unsurprisingly, short-term lending is a $ 90 billion industry in the United States. When the unexpected happens such as a family crisis or being fired, people often have to find ways to make ends meet. This is where lending comes in. Short-term “small” loans give you much-needed cash flow until your financial situation improves.
5 Things You Need to Know About Fast Cash Loans Guide
Quick money, also called “payday loans”, “cash advance” and “instant loans”, can act as a bridge during tough times and help you cover unforeseen expenses. Still, this is only if used correctly. Used irresponsibly, instant money leads to more and more debt. Before applying for a loan from an online lender or payday lender, take a look at the pros and cons of the loan online.
1. How Does the Fast Cash Application Process Work?
You’ve probably seen payday loan shops in your city. You can apply for fast cash in person at one of these locations, or complete an online application. Getting fast cash online may be the best option as it allows you to shop from various online lenders to find the best deals.
With fast cash, you generally do not need the collateral that many traditional loans require. However, you may need to provide proof of income, social security number, checking account information, and other personal details such as email and physical address in order to get fast cash.
MFO like MoneyZap.com stated that the decision to issue fast cash takes from several minutes to several hours. Many lenders will deposit money into your account within 24 hours but sometimes it can take several days.
2. Some Lenders May Not Require Good Credit History
Borrowers with low credit ratings may have trouble accessing lines of credit such as credit cards. Typically, borrowers with scores below 580 “may not get loan approval at all.” They can get a secured credit card but that won’t help in an emergency. How can people with bad credit history get instant money quickly when they are in trouble? Since fast cash is available to borrowers with bad credit, they fill a significant gap in the private loan market.
3. Fast Cash Usually Cheap
According to the Federal Reserve Bank of St. Louis, the average size of a quick cash loan is usually $ 500 or less. Most people borrow between $ 100 and $ 1,000. Fast cash amounts are relatively small because they are designed to cover a specific range of total incidental costs.
For example, if you are unable to work due to illness or natural disaster, an instant online loan can give you the money you need until your next paycheck. In short, fast cash is not big installment loans like mortgages or car loans. They are designed to temporarily make ends meet.
Don’t expect to get much more than $ 1,000. You probably wouldn’t want to borrow more because of the high-interest rates. If you need more than $ 1000, you can qualify for a personal unsecured loan in installments even if you do not have an ideal credit history. Fast cash amounts may range from $ 1,000 to $ 10,000.
4. How High are the Interest Rates for a Fast Cash Loan?
According to the Consumer Financial Protection Bureau (CFPB), lenders that provide fast cash typically charge a funding fee of $ 10 to $ 30 for every $ 100 borrowed. Actual funding fees will vary based on the laws and regulations of your state. When most payday loans or quick cash loans have short two-week terms, the annual percentage rate (APR) of quick cash loans is quite high.
A CNBC report found that Americans pay an average of 400% per annum on payday loans. This is about 20 times higher than the annual interest rate on credit cards. You don’t need to be a financial expert to know that without a good repayment plan, Thus, it can leave you in a spiral of worsening debt. Before taking fast cash, carefully read the terms and conditions. Make sure you can repay the loan in full at the end of the loan cycle.
5. Fast Cash Depends on State
Before you start applying for fast cash online, it is important to understand the laws of your state. Some states, such as Arkansas, North Carolina, and Arizona, prohibit payday loans and fast cash loans. Other states set limits on funding fees and loan amounts. For example, the maximum amount for a fast cash loan in California is $ 300. The maximum commission for a fast cash loan in Alabama cannot exceed 17.5%. If you would like to learn more about loan laws in your state, then visit the National Conference of State Legislators.
How to Make Fast Cash Loans Work for You?
A fast cash loan can help you overcome financial hardships. Nevertheless, it is very important to be careful with such loans. Your job is to get the best loan terms so that you can pay them off in full by the end of the loan cycle.
Fast cash makes sense if:
- You need to borrow less than $ 1000;
- You may not be able to cover your expenses by delaying payments on some bills or temporarily reducing expenses;
- You have highlighted alternatives such as obtaining a loan from a non-profit organization or credit union;
- You are absolutely sure that you will have the money to return it in full in no more than a few weeks.
Considering the high financial costs of fast cash, you should also consider looking for alternative loans that have a lower rate and can be repaid over time. After all, you want to lower your cost of borrowing money. In most cases, you are probably better off looking for a personal loan in installments with a lower rate without any early repayment penalty.
Some lenders instantly help people overcome cash flow problems by offering consumer loans for up to several years. As they report to all major credit bureaus, you can improve your credit score by making regular and timely payments. Cash loans give you more time and money to make ends meet and achieve your financial goals. They tailor loan rates and conditions to your unique situation and can offer exactly the financing solution you need.
Frank Glemstone – Frank is a graduate of the Master’s program in Economics Sciences. He has written numerous articles about personal finances and wealth. Working as the main author for MoneyZap he is now connecting with clients across the country, helping them achieve their financial and life goals.
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