If you are stuck in the midst of a situation that requires immediate cash, taking out emergency cash loans is by far the easiest and fastest option you have these days. Mostly offered by online financial agencies, cash loans are short-term loans that often start from $100 to over $1,000. They are considered short-term advances because you have to pay the loan, along with the interest, on your next payday. One thing that’s truly remarkable is that the money can be deposited to your bank account a few hours after lenders have received and evaluated your application. The fast and easy process, along with the simple requirements, makes these loans indeed perfect during emergency financial needs.
As a responsible credit consumer, however, it is crucial that you know and understand the different aspects of cash loans. Indeed, emergency cash loans bring several benefits, but without really understanding what you’re getting into, it’s easy to get trapped in what financial experts have termed “the vicious payday loan cycle” – a cycle that is hard to break and get out of.
The Cost of Cash Loans
As with other types of loans, lenders that offer emergency cash loans also charge interest rates. The difference though is that the interest rates are a bit higher compared with loans acquired from banks, as well as interest rates that are charged on credit cards. For instance, if you take out emergency cash advance of around $200, expect to pay back around $215. Agencies have different terms, policies, and rates, so you may be able to take out a loan with an interest that is either higher or lower than the one mentioned. Some lenders also have charges on other services, such as further expediting the application process. Importantly, expect to pay charges on overdue and late payments with emergency cash advances.
Another aspect that you should look into is the duration of payment. In general, lenders will require that you pay back the loan in a matter of two weeks, or on your next payday. Sometimes, lenders may extend the payment or may allow you to pay the loan in a month or so, but on a condition that you provide collateral or that you have a good credit standing. Note though that lenders do no credit check, so having a stellar or bad credit score is not a requirement and doesn’t matter much with this type of credits.
There are two requirements that you need to satisfy in order to qualify for emergency cash loans. One is that you have to be 18 years and up, and another is that you are employed and have a steady source of income. There are no supporting documents required, or anything to submit and fax to your agency, nor there is a need to spend long hours on the phone so you can talk to a loan representative. Importantly, you don’t have to have a stellar credit score to qualify for emergency cash loans. You just need to provide details like your name and address, as well as employment and bank details, through an online application form, and you can have your emergency cash delivered to you within the day of your application.
The industry of instant cash loans continues to be criticized by financial experts in that they believe that these loans can easily get you hip-deep into debts. The truth though is that if you are not aware of what you’re getting into, even loans acquired through traditional lending methods can get you deeper into debt. Thus, the secrets to taking out cash loans, as well as traditional loans, are to know what’s being offered to you and to always make an informed decision.