There may be times when you would find yourself in a tight financial situation and in an immediate need of cash, a couple of weeks before payday. Whether it’s an overdue bill that you have to pay asap, or an emergency situation that needs to be addressed immediately, cash loans can help give you quick relief.
There are many different types of cash loans, and they have a lot of benefits. If you’re not sure if they’re right for you, knowing the benefits can help give you a good idea. Here’s everything you need to know about cash loans, their advantages, and why you should get one if you’re in dire straits.
What Is A Cash Loan?
A cash loan is a short-term loan that comes with a repayment plan. Depending on several factors, they’re usually small, going for as small as $1,000 and as much as $15,000. They have a repayment period of between 7 to 30 days. Like car title loans, they may have longer payment periods depending on the lending institution.
They’re also usually easier to qualify for than other types of loans, including a personal loan. Most quick cash loans don’t need credit checks, making them risky for the lender. This is offset by higher annual percentage rates (APR) due to the short-term nature of the loan itself.
Cash loans are usually offered through private lending institutions or even non-banking lending companies. They’re easy to get because they’re primarily used for emergencies, and once approved, you’ll get your cash in a matter of days, if not hours.
Payday loans are another type of cash loan. While typical cash loans account for how much you can pay at the end of the month, some payday loans provide higher limits and shorter payment periods. In exchange for higher potential cashouts, their APR can be on the higher side too.
Benefits Of A Cash Loan
Cash loans have a variety of benefits, especially for those who need as much money as possible in a short time period. Depending on various factors, such as credit score and qualifications, you can take good advantage of these loans.
1. No Use Limits
Cash loans can be used for various reasons, with no limit to the things you can do with them. Many people use cash loans to consolidate other loans, pay bills, and help with emergencies. This is especially advantageous if the money you expect is still a few weeks away and you have no other sources of quick cash.
2. Speaking of Quick Cash
Much like any short-term loan, cash loans are dispensed in a matter of days or hours. You also get the financing in cash, so you can use it as soon as you get it. It can help pay bills and avoid late fees or penalties.
3. They Have Flexible Repayments
Cash loans are short-term loans designed to help consumers pay off small debts quickly. Because of this, they’re low-cost and come with a shorter repayment period. This makes it easier for you to pay back the loan and ensures that you’re scot-free at the end of the month.
4. Easy Requirements
Cash loans are a great option when you need extra money fast. Since they’re short-term loans, they’re easier to qualify for. Most of these only need you to be 18 above, have a bank and have a source of income.
5. They’re Convenient
The big issue with personal loans is that you need to fit several requirements, including a good credit score. Cash loans are easy to apply for and usually have a quick approval process, with most of these loans having zero credit score requirements.
Once approved, you’ll get your cash – no muss, no fuss. This can help you get your finances in order if you need it.
6. Qualify For Larger Amount After Repayment
One way that lending institutions incentivize their customer base to consistently pay cash loans on time is to increase customers’ qualified credit. Once you pay your existing debt, you can qualify for a larger loan next time around. As you build your internal credit with the lenders, you can borrow more and more.
7. Protects Your Credit Score
As most cash loans have a “no credit check” policy, they rarely affect your credit score. This makes them perfect for borrowers who have no credit or very low credit scores. It’s also a fantastic way to protect your credit score, especially if you simply need some quick cash for emergencies.
How To Avail Cash Loans
Cash loans are easy to get, primarily online. Most require a simple application, and you can get approval in a matter of hours. If you go on-site, you’ll likely have to go back the next day or wait for a few hours. Here’s how you do it.
1. Log On To An Online Loan Company
The first step is to find an online lending company that offers cash loans. There are a variety of online lenders that can give you quick cash, but not all of them have fast approvals. Most companies have FAQs that can provide the information you need.
2. Check Their Website
Before filling out an application, check their website first. This should give you a general idea of what you can qualify for and how much they lend. Not all lending institutions are created equal, so make sure that you carefully vet your lenders.
3. Fill Out The Application
Fill out the entire application with as much detail as possible. This will help ensure you’re approved for the loan. They will likely request several pertinent information, including a copy of your identification, mobile number, and more. Some applications also come with ways to ensure you’re representing yourself.
4. Submit Your Application
Once you fill out the application form, submit it and wait for the approval. Depending on the company, they will handle the authorization with a call to confirm you’re a real person. Processing times differ depending on the company, which takes a few hours to a couple of days.
5. Get Approval
Some lending companies give you a call to provide you with the good news – if it’s a no, move on to the following website on your list. If it’s yes, you’ll get your cash loan, and they will likely ask for additional details on how to wire your money.
The Bottom Line
Cash loans are a fantastic asset to have in your financial arsenal. Borrowing money can be difficult, but cash loans can ease the process. As long as you pay back the money on time, it can be a great asset to have.
If you’re looking for a reputable lender with thousands of satisfied customers, Payment1 is the right choice. Payment1 provides different types of loans for every need, from personal loans, auto loans, tax refund advances, cash loans, and more. Talk to us today and see how we can help you pay for everything you need.