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.
