We all need a little financial help from time to time. Unexpected expenses like medical bills, your car breaking down, or needing a plumber are all situations that require having a certain amount of money on hand.
But what if you don’t? How can these costs be covered if you don’t have any savings and your credit card is maxed out? Scenarios like this are when most people seek quick cash loans to help them cover these expenses.
According to a Federal Reserve report from 2018, four in ten Americans wouldn’t be able to cover an unexpected expense of $400. To cover unexpected expenses, some people choose to sell something or borrow money from a friend, while others decide to take out a quick cash loan.
What is a Fast Cash Loan?
A fast cash loan is a short-term loan with a quick and easy application process, where the borrowed funds are available soon after the application has been approved.
These loans are usually unsecured, meaning that they don’t require any collateral like your house or a car. Because the loan is unsecured and comes with a short term, lenders often charge higher interest rates than with traditional bank loans.
Fast cash loans are an excellent solution when you need funds immediately and should be used as a one-time fix for an unexpected expense.
A quick cash loan is a short-term loan with a quick and easy application process, where the borrowed funds are available soon after the application has been approved.
How to Apply for a Quick Cash Loan?
Applying for these loans is rather easy. You should either visit a storefront lender or look for online lenders. Taking out an online loan is almost always the best option, as you can go through the whole application process from your home. It’s also easier to compare different lenders online, rather than visiting several physical locations.
After deciding on a lender, you should fill out an application which usually takes several minutes. Lenders don’t usually need to perform a hard credit check like banks, which is why an application can be approved much more quickly.
Instead, a lender performs a soft credit check to make sure you are employed and able to pay back an amount you want to borrow, and this process usually lasts only several minutes. In addition, a lender may review a bank statement to confirm your income. After your loan is approved, you can typically get a check right away or the following business day.
If you have applied online, you might even be able to get funds deposited into your bank account within 24 hours. After that, depending on the type of loan and repayment plan, you will be required to pay back the borrowed amount with interest and additional costs in a certain period of time.
Different Types of Quick Cash Loans
There are two main types of loans you can get approved for in minutes: payday and personal loans. The difference is mostly seen in the repayment plan and the overall costs of borrowing.
Payday loans are one of the most popular solutions for quick loans for unexpected expenses. They come with a short term of two to four weeks and are meant to be repaid on your next paycheck, which is where the name “payday loan” comes from.
Payday loans usually have higher interest rates because of the short-term nature of the loans, and typically lenders will accept lower credit scores from borrowers.
The cost of a payday loan varies from $10 to $30 for every $100 borrowed over two weeks. Many lenders also give you an option to roll over your debt if you are not able to pay it back on time.
A rollover means that you would only have to pay the interest and that you would get to pay back the borrowed amount on your next paycheck, but you would also need to pay additional costs for the prolonged period of borrowing.
Because of higher interest rates, ability to roll over debt, and some questionable lender practices in the past, some types of payday loans are predatory. That is why you need to pay special attention when taking out this type of loan, including choosing a lender with agreeable terms. This is why CreditNinja prides ourselves on providing fair loan terms with flexible repayment options.
If you see that a lender is transparent about all terms and costs, and you understand the risk, then potential problems will be limited. Borrow responsibly and make sure to pay everything back on time.
Personal installment loans typically offer a lower interest rate compared to payday loans. Instead of having to pay the entire principal plus interest back in two weeks, personal loans carry a series of monthly payments, which typically means each payment is smaller (depending on the size of the loan).
CreditNinja specializes in offering outstanding personal loans with competitive interest rates and a repayment plan customized to your budget.
These personal loans are a perfect solution for your financial emergencies.