There are lots of adverts about quick cash loans floating around, but what are they, and are they safe? Like any other loan, you need to understand how they function before you agree to one, otherwise, you might get yourself into a situation that you could have prevented.
Quick cash loans are emergency loans. They are designed to allow borrowers in a tight spot to get money fast. People who use quick cash loans tend to have low credit scores or very limited funds. This means that they cannot ask for stable long-term loans or use their savings to help them when times get tough.
Quick cash loans are normally approved online by an automated system. Lenders recognize that you need the money fast, so create straightforward application forms to help you quickly receive the cash. This means you don’t need to book an appointment or talk to staff; simply add in your details and wait to be approved. Before you agree, you are told:
Lastly, you are asked to confirm which bank account to send the money to.
Depending on the lender, you will receive the money instantly, within a couple of hours, or before the next business day. The time will vary to allow the lender’s automation system to pick out people who might not be approved. If you are on the border between approval and rejection, a staff member will check your file to confirm a decision. This “next business day” time frame allows the staff member to consider your situation.
Again, depending on the lender, you will have a short amount of time to pay back the loan. Most quick cash loans expect you to either pay the whole amount back in 30 days or begin your monthly payments within 30 days. Either way, the payback period will be made clear in your application process before you agree.
Although every lender is different, they will need these details to find your credit score, understand your credit history and send you the loan. These details include:
The process will be as quick as possible to help you receive the money fast. However, the lenders need to agree that you are not at risk of defaulting or being unable to pay them back. They will ask how much you earn to see if it’s plausible for you to pay back the money in 30 days. If they see that you already pay $X each month in debt repayment, they might think this additional loan will be too much for you.
It is the lender’s responsibility to understand when you are borrowing too much. If they see anything to suggest that a quick cash loan is too much, they should not allow you to borrow from them. However, the responsibility isn’t just on them. You need to consider if the loan is really necessary. You should use these loans to pay for something you don’t need. Laptops, concert tickets, and holidays are not necessities, and using a loan to pay for them will cause you to pay way more in interest than you need to. Before you agree to a loan, you need to be aware of the costs and fees involved. Because quick cash loans are so fast and so small in value, lenders offer high-interest rates to earn money from the agreement. This means you might end up paying a large amount overall or your small loan. Understanding the final payment allows you to prepare financially and avoid missed payments, leading to a bad credit score.
In most cases, yes. Quick cash loans are designed to move as fast as possible. This means that the application process is fast, the amount of time it takes to receive the loan is fast, and you need to pay back the money relatively fast too. Some lenders might use another term to explain this process; for example, if you get quick cash loans from CreditNinja , you may find that they use the term “direct deposit” or “ACH payment.” This term refers to electronically depositing money into your bank account without cash or checks being involved. Because this type of loan is called “Quick Cash,” you might expect the loan to be given in cash form, but it is very rare for that to happen as genuine cash payments require the physical movement of money, staff to secure the safe, and more staff to count out the notes. This ends up costing more and taking more time.