Are you worried about your expenses till the next paycheck? Well, you are not alone; millions of individuals cannot cover an emergency of $500. However, it’s possible to get fast cash payday loans.
Research shows that the coronavirus pandemic has caused numerous disadvantages to the economy all over the world. Therefore, over 100 million people have already lost their jobs, lest I forget about the number of closed businesses.
So, if you have some financial difficulties, you are not alone. But there is always light at the end. You can get a fast cash payday loan to cover up your expenses.
What Are Fast Cash Payday Loans?
A fast cash payday loan is short-term borrowing that you can get funding within a few hours after application. Payday loans are commonly famous for their high-interest rate nature, but people borrow them anyway.
Payday loans are good when it comes to sorting out emergency needs in the middle of the month. For example, suppose your car needs some spare parts, yet you have not received your paycheck; what ticks your mind? To many people, fast cash payday loans are an excellent fit for that purpose.
What Are The Characteristics Of Fast Cash Payday Loans?
Before you can take a payday loan, you should know about its typical characteristics.
- The application process is simple
Due to the growth of Fintech in recent years, multiple lenders have moved to online lending, making borrowing easy and more convenient. That’s why it will always be simple to acquire a fast cash payday loan.
The good thing is that you can access the loan from the comfort of wherever you are, as long as the government permits the loans.
- Short-term in nature
Since payday loans sort out short-term problems, the repayment period doesn’t exceed 16 days. Once you borrow, you repay the money after your next paycheck, hence the name payday loans.
The best part of this characteristic is that you will not stay in debt for a longer time. Imagine having an installment loan that will still be in your paycheck for several months or years? That doesn’t sound good!
- Small loan amounts
Don’t start thinking that you can use a fast cash payday loan to buy a car or a house. No. Payday loans are for minor expenses like buying some groceries or renovating your home. Also, since payday loans are of small amounts, you can comfortably repay in one lump sum amount at the end of the month.
- Your paycheck determines the loan amount
Having your salary to determine the amount of loan you get sounds to be a good idea. However, in most instances, since you pay in 16bdays, payday loans do not exceed your paycheck amount. And that translates that it’s easy to stay out of debt.
- Very high-interest rates
There is no other loan that has high rates than payday loans. Imagine getting a two-week loan with an APR of over 391%? Does that make any sense? Of course, it doesn’t. But you will always find that payday long lenders have given out their cash.
The lenders say that the high rates are due to the high-risk clients. The people who take payday loans mostly have lousy credit scores.
- No credit checks
This fact attracts people to payday loan borrowing. Despite the high rates, people still flood to get payday loans.
Payday lenders only require you to have a steady flow of income, and then you have your cash with you.
Eligibility Criteria Of Fast Cash Payday Loans
Like any other lending, there are rules to follow before you can access a payday loan.
- You must have more than 18 years of age
- Possess a valid identification document
- The state you are in should be legalizing payday loans. However, note that some states do not permit payday loan lending.
- You should have a stable source of income
- Provide valid residence address. Most lenders will request a billing address that you bought something recently.
And the most critical part is that you should have an active checking account with a statement record of more than three months’ income. The lenders need that to prove your affordability.
Now that you understand about fast cash payday loans, should you take them?
Due to the high-interest rates, payday loans tend to be debt traps that you should stay away from them. Therefore, if you have some other means to get funds, it’s advisable to use them.
The best thing you can do is create more income streams that will help you have more cash. Remember, more income means less debt.
The Bottom Line
Fast cash payday loans are a good idea if you have an emergency. However, if you cannot afford to repay the payday loans without interrupting your budget, then forget about it.