Everything you Need to Know about Quick Cash Loans in 5 Minutes:
No matter how careful you are with money, you will encounter a situation at least once in your life where you need to get cash quickly.
This is nothing to be ashamed of, in fact, it happens to many Americans every day. These situations can be used by unexpected medical bills, car repair bills, having to plan an unexpected funeral, or having to repair damage to your home.
So, how can you get cash fast? Well, you could pick up some extra hours at work, but it will take most employers a month or two to add the money to your paycheck. Or you could borrow it from someone you know – this may put them under financial stress.
Or you could look into quick cash loans.
What are Quick Cash Loans?
What is a quick cash loan? They are normally personal loans that have a quick application process and are approved quickly. So that you can get money in your bank account as soon as possible.
When getting a quick cash loan, you want to make sure that you are borrowing money from a reliable source and not from a loan shark. Make sure that company you are borrowing money from is part of a lending alliance and has a good Trustpilot score.
Quick cash loans will have a short repayment period. They are designed for emergency situations and can sometimes be called Payday loans. Quick cash loans can have a repayment period of anywhere between a week and 4 months.
Each loan will have a different repayment period and different interest rates. Your credit score can affect the amount of interest that you have to pay on your loan.
How to Apply for a Quick Cash Loan?
You will need to choose a lender first. As we mentioned above, you should make sure that they are well rated on sites like Trustpilot and that they are part of a lending institution or alliance.
Once you have chosen your lender, you will need to apply for the loan. Some lenders will let you apply online using a form that takes less than 10 minutes to fill out. Others will require you to take a paper form into a physical building.
If you can, then try to find a lender that offers an online application. Not only will these be quicker to fill out, but they will also be processed faster than a physical loan application.
During your application, you will be asked about how much you are earning, whether you have any debts or loans. You will be asked about where you live (do you rent or own). You may also be asked about your work.
Once you have given the lender all the information they require, it will be reviewed. Most lenders will do a credit check. This will show them your credit score (find out about how to improve your credit score later).
If you are approved you will have to agree to a payment plan and interest rate. Once this is done the money will be transferred to your bank account. You can then use the money how you wish – pay your medical bills, fix your car engine, repair your house’s roof after a storm.
All that is left to do is to keep to the loan’s repayment plan. You will be in this contract with the lender until you have paid off your debt. Not doing so will make it much harder for you to get any kind of loan in the future. Meeting your deadlines can improve your credit score.
Types of lenders to avoid:
- Lenders that aren’t insured
- Loan sharks or other dodgy lenders
- Lenders who have extreme interest rates
- If you have a bad credit score you may have your loan application rejected.
- If you have multiple other loans out already you may have your loan application rejected.
- If you have a large amount of credit card debt you may have your loan application rejected.
- If you are rejected then there are a few things you can do.
Firstly, you can try to boost your credit score by paying off some of your credit card debt. Or by paying off some of your other loans. Paying off your debts is the quickest way to improve your credit score. Your credit score is what banks and lenders use to judge how reliable you are with your money. If you have a bad score they will be hesitant to lend.
Secondly, you can wait and apply for the loan again, but if your credit score has not improved then it is unlikely you will be approved the next time you apply.