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Cash loan
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.
As 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 date.
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. Other Articles |
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