The term quick cash loans often refers to loans that are made on a temporary basis to individuals who have less than perfect credit. With the economy being what it is today, there are many working families who have had their credit records tarnished by the circumstances of the day.
People have had their employers go out of business, be downsized, bought out by other companies, merged and absorbed. Workers have lost their jobs, been put on part time, and are now working two or more jobs just to make their budgets and survive.
Getting a loan from traditional sources is literally out of the question when it comes to acquiring a loan from a traditional bank or credit union. Most lending institutions of this nature are very particular with whom they do business.
This is where the quick cash loans concept kicks in. This is a perfect situation of credit damaged individuals, as all that has to be shown in the way of requirements is that the borrower has a reliable and steady income, and that he or she owns a checking account.
Once the online application is completed, and sent in to the lending company, the borrower can expect the loan proceeds to be deposited right into their checking account by direct deposit in just a few days.
Typically, the loan terms will require that the loan amount plus interest be repaid by the time of the borrower’s next paycheck. This is why the amounts of the loans range from $300 to $700. Once a person exhibits the ability to pay the amount of their loan on a timely basis, the lender may extend better terms such as lower interest rates and a longer, installment type of repayment schedule.
Having this type of service available allows many families the emergency resources they need to get by until they can get back on their feet financially.
Let’s face it, in these economic times many workers have either lost their jobs, been downsized, or other various contortions that they have to put up with. Consequently, many people have credit problems and it has affected their financial condition to a large degree.
However, there has also been an upturn in the number of loan entities who will offer no credit check cash loans if a person can demonstrate that they have a steady income and that they own a checking account.
The borrower can apply for the loan online and if they qualify, can have their cash money deposited for them into their checking out by direct deposit.
This knowledge gives many working families a sense of great relief, as from time to time there will be financial emergencies that will crop up. Instances such as the only car available for transportation to and from work breaking down, a medical emergency requiring a family member to be hospitalized, or an out of town emergency with a relative can occur without any warning at all.
If there were to be no availability of a service such as no credit check cash loans, families would have little recourse in being able handle these occurrences.
When such a loan is obtained by a borrower, the interest rates are going to be higher than a normal bank loan, but chances are the borrower won’t be able to qualify for a normal bank loan anyway.
The usual method of payback of the loan is to have the balance of the loan plus paid back by the borrower’s next payday. Therefore the amount of the loan is around the $300 to $500 range for starters. As the borrower demonstrates more ability to pay back the loan, the loan amount can be increased.
Before we answer the question in the title about whether or not you should get a cash advance loan, let’s first talk about this type of loan first.
A cash advance loan is a short-term loan where you can get small amounts of money. As a short-term loan, you need to repay the money in 30 days or less, and you can’t expect to get more than a few dollars in loan with your application.
Although they have very high interest rates (at 300% annual rate if you do the math), the truth is that this type of loan has a special place in the hearts of those who are in debt with them. Why? The reason why can be summed in just one word: CONVENIENCE.
You only need to apply for a loan with just a few clicks of the button, and within a few minutes, the creditor will then get back to you with a response. This might make you feel nervous, however, the truth is that cash advance creditors rarely reject applicants just as long as they present proof of income and send their bank account information.
We already mentioned earlier that a cash loan can have an annual interest rate of up to 300%. This is very expensive, and it’s one of the many reasons why more and more states are trying to regulate the industry. So far, however, the interest rates are still higher compare to the interest rates charged by banks. However, the good thing about is that even people with bad credit can apply for this type of loan and get approved.
Not surprisingly, and precisely because of this free-for-all stance, there are many people who apply for this type of loan and become indebted most times of the year.