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.
