One of the few positive developments resulting from the current economic slowdown is the explosion of competition among lenders, seeking to profit from consumers’ lack of cash flow. That means that institutions which offer quick cash loans for people with bad credit are fighting for business, and the borrower benefits from this battle.
Quick cash loans are not seen as long-term solutions, and they are not even the best short-term solutions in some ways, but if you need money for a special problem and you need it in a hurry, a cash loan can save the day.
It is not hard to find a lender that does not require a credit check, so your bad credit is not a problem with those lenders that give quick cash loans. Once you apply online or in person, the process can take just a matter of minutes. You can’t beat such cash loans for their quickness.
However, given that no credit check is involved, lenders have to cover their losses by charging interest rates that you won’t see in many other settings. They also are not going to put thousands and thousands of dollars on the line with applicants that have a poor record when it comes to paying their debts.
What to Use Quick Cash Loans for
For that reason, quick cash loans are not very large in size, they are to be repaid in a short amount of time, and their interest rates will be higher than you are used to. A typical cash loan will be for $1,000 to be repaid in two weeks, for instance. Many quick cash are counting on repayment once the borrower’s next paycheck comes through.
People use these loans to make rental or mortgage payments and avoid late charges or even foreclosure. They also turn to quick cash when they have unforeseen medical expenses or face cut-offs of utilities due to non-payment. They have been seen as a lifesaver for many.
The requirements for most cash loans are minimal: you must be 18, have a checking account and a steady source of income. Once these criteria are met, many cash loans are approved immediately and the funds are electronically transferred to the borrower’s account.
Some quick cash loan agreements mandate that on a certain date, the repayment of the loan will be made through an automatic withdrawal on the same account. Other contracts allow for the borrower to re-pay the loan by check, cash or online transfer.