An instant cash loan, also called a payday or quickie loan, will give you access to cash in case of an emergency. For instance, if a loved one is in the hospital or you could not pay your mortgage, which would put you at risk of foreclosure, you apply for this type of financial lifeline to keep your head above water.
The advantage of instant cash loans is the short turnaround time. Once all the documents are in place and all your financials are in order, the money will be wired to you in a matter of hours. You will also pay a fixed percentage of the principal amount each month. It is known as the account keeping fee.
The process is also quick and easy, but it is not for everybody. You need fiscal responsibility when you are applying for a short-term loan. For instance, you start payment about 20 days from the date the money is transferred to your account. That means if you do not have money coming in within that period, you might incur surcharges for late payments.
You can also apply online. They operate 24/7, unlike the banks, which typically close at 4-5 p.m. You can also contact these quickie cash lenders even on Sundays and holidays.
Here are some tips for you:
Do not borrow more than you need — The money is not meant to pay for indulgences. If you want cash to buy that new watch or dress, better save up first so you can afford it. The instant cash loans are meant for emergencies and you are short on cash.
Pay on time — Once you default, the company can report you to credit agencies, which could drastically affect your score. Missed or late payments will also incur surcharges and penalties, which will add to your monthly payments. With that said, choose lenders who are flexible. What that means is that if you have a valid reason, they would be willing to forego the surcharge. Make sure to contact them and tell your reason prior to your date of payment.
Read the fine print — As with all contracts, you should always read the fine print. Even if they charge a small processing fee or interest rate, there might be some hidden charges you are not aware of. For instance, they might slap a steep default surcharge for missed payments.
Keep your documents in order — When you first inquire, immediately ask the lender for the required documents to be submitted. They will typically run a background check on you using Credit Sense. It is non-invasive and you do not have to do anything. But if you have all your documents, it will speed up the processing period and you get your money right away.
People observe that instant cash loans have high-interest rates. But that’s by design since the lender assumes all the risks. Unlike with banks, the borrower will not be forced to go through hoops in terms of requirements and documents. The turnaround time is also short, owning to the nature of the loan. With banks, you would be lucky to get the money in a week’s time.
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