More often than not a quick cash loan also called payday loan,
cash advance loan or a deferred deposit service is a small,
short-term loan typically ranging from $ 100 to $ 500. It is
worth mentioning in this regard that these quick cash loan are
issued against paychecks.
If experts are to be believed not so long ago, payday lenders
like bank departments, credit companies or independent cash
lenders serviced between 10 million and 12 million customers.
In an ideal scenario a typical borrower of such cash
loan pays $15 for every $100 borrowed. On the other side
of the coin the loan period normally lasts for two-weeks. Fact
remained that if you do the maths, youl'll quickly see that
this accumulates up to an annual percentage rate of about 400%.
Now, it is quite mandatory that you may inquire that since the
loan period is only two weeks, you only pay 15% period. Yes,
believe it or not that's right if you are able to take no more
than one cash advance loan a year. However, point to be noted
in this regard is that statistics shows that many of the first
time borrowers are taking this type of loan again and again.
And in simple terms here is the real danger with such loans:
We have seen over and over again that if you first have started
with payday cash loans, it is very difficult to stop taking
them. Because of this simple reason this type of loan creates
a vicious and costly circle.
To illustrate this point let's give an example of the costs
of these loans: What happens if you cannot pay back the loan
at the end of the two-week period In that scenario you can
ask the payday lender to hold the loan for another pay period.
Then it is worthwhile remembering that you have to pay the fee
a second time and the loan rolls over and it starts to become
very expensive. However, fact of the matter is if you have a
job this kind of loans are easy to get - in other words it is
easy and fast money - and if you first get hooked on this merry-go-round
it is very difficult to jump off. According to experts the reason
why cash advances are marketed so aggressively is that they
are very profitable for the lenders. In other word these kind
of loans are predatory by nature and accumulated fees from repeat
borrowers are the big profit generator of this business.
In case if you consider this cash loan
option, it is recommend that you to go back and do a comparison
of loan fees, interest rate and other costs of payday loans
to other credit offers (for example credit cards).
Believe it or not quick cash loan doesnt require any paperwork;
credit checks or faxing of documents and the cash is deposited
in the borrowers checking account within a day or two. In addition
a quick cash loan doesnt have any application fees. As a matter
of fact many lenders are now offering quick cash loans through
Internet. It is worth mentioning in this regard that the entire
process from filling up of the application to approval of the
quick cash loan is done online. Theoretically speaking once
the lenders are satisfied, the funds are put into borrowers
checking account via a wire transfer; absolutely no hassles-
just quick fast cash. On the other hand if you earn at least
1000 per month you can get a quick cash loan of 500 deposited
into your checking account within 24 hours.
If experts are to be believed the essential requirement for
getting a quick cash loan is that the borrower should be employed.
More often than not many lenders offer quick cash loans only
to those people who have been with the same job for at least
five months. This is because the lenders want to ascertain that
the applicant has a steady job and is receiving a consistent
income for at least a few months. Furthermore it is worth noting
that a three-month-old checking account is also one of the requirements
to get a quick cash loan. In addition to these, always remember
that the lenders will verify the borrowers identity. There is
no hiding the fact that the lenders often overlook poor credit
history and bad credit ratings, because quick cash loans are
based on the employment status of the borrower.
In simple terms the interest rates on quick cash
loan are on the higher side. Point to be noted in this
regard is that the typical APR for a quick cash loan can be
between 9% and 30%. However, it is worth noting that lenders
nowadays are increasingly charging fees instead of the interest
on quick cash loans.
a matter of fact on an amount of 100 this fees can range from
15 to 30. In an ideal scenario quick cash loans are available
for small amounts- usually under 1000. In theory the quick
cash loan has to be repaid within 15 to 30 days. Furthermore
it is worthwhile remembering that the repayment process is either
an automatic deduction of the loan amount from the checking
account of the borrower, or a check in favor of the lender.
On the other side of the coin the repayment date of these loans
generally coincides with the paycheck date. In case if a borrower
is not able to repay on the specified date he has to bear the
penalties. Whats more the lenders add up the loan fee or the
interest rates each time the loan is rolled over to a new repayment
There is no hiding the fact that a proactive borrower can cut
any delay in the approval of a quick cash loan. Before applying,
it is quite pivotal that if a borrower has his employment, identification
and checking account details ready, he can get the loan very
quickly. Fact remained that many lenders take just five minutes
to process the application. According to experts the entire
process - concurring perfectly with the sensitivities of the
borrower, justifies its name quick cash loan.
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