Advantages and Disadvantages of Fast Cash Loans

A quick cash loan is a type of loan that is given by a payday loan lender to a borrower who has immediate need for fairly small money. The amount of money that is allowed to be borrowed is anywhere between $100 and $2500, although some companies or private lenders might provide loans much lower than that. There are many issues regarding making quick cash loans. A lot of people are confused whether or not it will benefit them. The number of unsuccessful payday loan borrowers doesn't help one bit in relieving the  stress put on the quick cash loan option. To help you decide whether or not this type of loan is an opportunity or a definite no-no, the following article recounts the advantages and disadvantages of making this loan.

First of all, let's talk of the advantages. The good things in a payday loan or quick cash loan include immediacy, availability and the ease of approval. Even for bad credit borrowers, lenders don't close their doors and give out loans regardless of the risk that they are inviting into their business. For the borrowers' part, this is a clear advantage that must be taken into account when stuck in a financial bind.

The loan has very few requirements. A borrower is required only to bring photo identifications and any proof of past income. Sometimes, the borrower will be asked to provide excess information about him or herself, such as bank account numbers. This shouldn't be taken in a negative way. In fact, it should be seen as a good thing because the lender will use the bank account information to transfer the funds automatically once the loan is approved. As for repaying the debt, the funds are also automatically transferred to the lender's account once the promised paycheck comes in.

Since the reassurance needed is covered by the next monthly or biweekly salary of the person borrowing the money, quick cash loans are very safe for both the lender and the borrower. That is also the reason why lenders can give it without any long delay whatsoever.

Moving on, let us not discount the disadvantages. There are downsides to this loan, too. It should be noted, however, that the downsides are almost always caused by errors in judgment in part of the borrower. For instance, the principal amount may balloon to twice its amount. As a matter of fact, it can get up to tenfold the principal amount. The reason behind that is because the borrower can extend the loan for as long as he wants, provided that he is willing to pay the added late fees to the amount owed. Or, the borrower can roll over the loan and pay only the interest. This would be the same as paying the old loan and getting a new one. Just for the short span of time requested, the borrower is required to pay twice the interest rates. That doesn't yet include the processing fees.

Another disadvantage is the high interest rate. All fast cash loans have high interest rates. A borrower must balance the need and the interests when deciding whether or not to resort to fast cash loans.

How Can You Apply for a Fast Cash Advance?

Cash advance is an increasingly popular option for employees who live from paycheck to paycheck. Not only does it provide them with an immediate solution for their needs, but it also provides them with a guaranteed solution. It should be noted that in the world of loans, immediacy and guaranty are the two sides of the same coin.

Quick cash loans often refer to the type of payday loan that is only short term and has very high interests. That, in itself, makes borrowers a little cautious when it comes to applying for quick cash advance loans. A quick cash advance is a good solution for people needing small amounts of money in the least time possible. For instance, anything between $100 and $2500 can be considered as a quick cash loan.

Since the process of cash advance loans are fairly straightforward, borrowers can take the easy way with this type of loan. The requirements are kept at a minimum, while the restrictions are lessened, if not totally removed. That being said, the borrowers are left with great advantages, such as quick fixes for unexpected financial binds. An example of a tough  spot is an emergency. A person living from paycheck to paycheck typically doesn't have enough savings to afford emergency medical expenses, especially if that person doesn't have insurance. For that reason, the cash advance route is a great fall back solution.

Make no mistake, though. It doesn't mean that you should always depend on borrowing money when push comes to shove. The main reason that quick cash advance loans are painted in bad light is that people are not very successful in managing them. For instance, a person who had once tried lending as a solution for tight financial spots will tend to use it again. Or, a person who couldn't repay the first debt on time will just try to extend his loan, by paying the full amount and renewing the loan. In purview, he is only paying the interest rates.

To apply for a quick cash loan, a person must present a few requirements, still. The requirements would include photo identification, as well as proof of income. The proof of income is to reassure that lender that the borrower has the ability to repay the debt. Sometimes, for very specific types of quick cash loans, the lender will ask for the bank account information of the person borrowing the money. The advantage is that the money is wired directly to the borrower's bank account once the loan is approved. 

The disadvantage is that the payment is automatically deducted from his or her bank account, even if the borrower has no intention of paying. In theory, either case would be a win-win scenario because the borrower wouldn't have to worry about paying the debt at a later time, when the interests are higher. However, in practice, the borrower might need fast cash to fix more urgent problems with the cash. In turn, the borrower ends up renewing the fast cash loan, instead of just extending it for a period of days.

What Are Fast Cash Loans?

Quick cash loans are short term personal loans that are made by borrowers needing small amounts of money immediately. The obvious advantage of this type of loan is that the borrower is able to get it in the shortest time possible. It is lent by a payday loan company in exchange for reassurance that the debt will be paid in the next paycheck, preferably in under fifteen days or four weeks' time.

The downside with this type of loan is in the interest rates. Because this type of loan does not require any delay in the approval process, the lenders take advantage and exploit the opportunity to impose high interest rates. The demand for quick cash does not help one bit in fighting off the trend. If anything, this demand is the cause of the high interest rates on this type of loan.

The interest rates imposed by lenders for short term loans like a quick cash loan amounts from 15 to 30 percent of the principal debt. That is excluding the amount in other fees and charges for processing the loan. Late fees and penalties will also apply if the borrower fails to pay back the debt on time. All of these make quick cash loans unattractive to someone who is new to the world of lending. However, this is just the bad side. There is a good side to it, too.

Fast loans are very advantageous because they provide a fall back solution for people who are in a tight financial situation. Unlike many other types of loans, this is a guaranteed type of loan, as the borrower will be approved almost all the time. The only requirement is that the payday loan must be paid with the next paycheck, or using other financing options in the next fifteen or so days.

As a general rule, the lending companies offering payday loans will ask for the borrower to sign a contract with them. This contract will encompass the entirety of the agreement, such as the date the loan will be repaid and the amount of late fees that will be added to the principal amount if the borrower fails to repay the debt on time. Other bank account and personal information that are collected by the lender will also be mentioned in this contract. It's important to note that the purpose of the contract is to ensure the safety of the borrower, as well as the lender. For that matter, signing this contract is mandatory for the funds to be released.

A rule of the thumb is to avoid lenders who don't have contracts or don't ask their borrowers to sign anything at all. If the lender tells the borrower that he or she will hold the debt upon trust, chances are high that the lender is only making it look like a legit fast cash loan deal, but it isn't. Staying away from lenders like these is a good way to be safe when applying for fast cash loans.

How to Get a Loan without a Job

These days, a lot of people want to know how to get approved for loans without a job. It's not as farfetched a thought as it sounds, really. It is indeed possible to get loans even you don't have a job. If you are needy of immediate money and you don't have work at the moment, the solution you are looking for can be found on unemployment loans. This type of loan is perfect for people who are presently in between jobs.

Unemployment loans provide the best and easiest solution for people who have been laid off, or those who suddenly found themselves in tight financial binds and they are without work. Since unemployment is a common scene in a down market like ours, there's just an endless number of people who need this type of loan.

Interest Rates for Unemployment Loans

The interest rates for unemployment loans are understandably high, as the lenders are taking a big risk, if not a total leap of faith, in people who doesn't have jobs. Bear in mind that borrowers would have a harder time paying off debts if they don't even have a sustainable income for themselves. The risk makes it nearly impossible for most lenders to harbor the thought of lending money to unemployed borrowers. Enter unemployment loans.

Kinds of Unemployment Loans

There are two kinds of unemployment loans. At first, the promise that this type of loan is suitable for people without jobs is just intoxicating. It does sound too good to be true. In a way, it is. The two types of unemployment loans are based on risk management. The first is called the secured loan, wherein the lender asks for collateral. This is the lender's security blanket when it comes to giving loans to people with unstable finances. The second type is the unsecured loan, which doesn't require any collateral at all. The catch is that the lender may use any legal means to extract payment for the debt. For instance, if a borrower fails to pay on time, he can be sued by the lender. The interest rates are also higher, as it is more risky for lenders.

To better understand how this can be an opportunity, and not another drag to the finances, it is important to realize that the money obtained from the loan has to be put to good use. The loan itself is well-intentioned. However, the way the money is put to use will still decide how effective the loan will really turn out to be. Take, for example, an unsecured loan of $2500. If the borrower doesn't pay on time, he will have to spend up to tenfold that much in liability suits and other legal expenses when he is called to his defense. On the other hand, if he uses the money wisely and starts a business, he will not only be able to pay the principal and interest, but he will have established a stable footing for his finances. In summary, it's possible to get a loan without a job. If you need to get a loan without a job, unemployment loans are perfect for you.

Can I Get a Payday Loan Without A Job?

Getting a loan even without a job is highly overrated. It's very sad that many people on the Internet are taking advantage of the fact that unemployed borrowers are desperate to find a source of money, even in the times they are in between jobs. One common misconception is that people are supposedly able to get payday loans without a job. The following article is going dispel this myth and root out the real thing behind it.

Getting Payday Loans

First of all, let's talk about what a payday loan is. This will help us better understand how it works and why it can't be given to a person without employment. A payday loan is a type of loan that is not built on trust. Instead, this loan is built on a paycheck. The paycheck is used to make a promise that the debt will be repaid on a timely manner. For that reason, nearly ninety percent of all payday loans go out smoothly, whereas in other types of loan, the number of people who are able to repay the debt fully and on time are well below half that.

In a payday loan, the absence of a proof of income disqualifies a person from getting approved. Without this required assurance, there is no point for the lender to take that risk. Come to think of it, the reason why it's called payday loan is because the borrower uses his payday to promise the debt will be paid back. Without that, there's nothing. And with nothing, there's no such thing as payday loan for unemployed people.

Unemployment Loan

That, however, doesn't mean people who are currently unemployed are totally without options. There are options for people who don't have jobs at the moment. One of which is an unemployment loan. This is the type of loan that is specifically built for people without work. A lot of us just get confused between the two and misinterpret the two things are one and the same. Payday loans and unemployment loans are very different. For one, unemployment loans have higher interest rates, as there is very little assurance for the lender that the debt will be paid back. The time to wait for approval may also take longer. The good side is that the amount of money is much higher.

An unemployment loan can be one of two things: a secured loan and an unsecured loan. The first requires that the borrower presents collateral for the loan, while the other does not. The collateral is often a house or a car, or some other huge financial investment. In some cases where the principal amount of money being borrowed is small, the collateral may just be digital devices, gadgets such as cellphones, or jewelries.

The unsecured loans have the highest interest rates, as the lenders are at a total loss of surety when it comes to being paid back. In turn, they may take aggressive measures to extract payment. The borrower can't default on his loan like in secured unemployment loans. If he does not pay, the lender has the right to bring the borrower to court, which will then lead to more financial setbacks for the borrower.

It is true that one can get a loan without a job. But to get a loan without a job, there would be some risks; a borrower must know how to manage those risks in order to succeed in this.