Fast cash loans are small short-term unsecured credits that are due typically within two to four weeks. These credits are also known as "payday loans," because they are typically repaid when the borrower receives his paycheck. They are a great option when you need money right away and should only be used as a one-time fix for an unforeseen situation.
More About Fast Cash Advances
Fast cash loans are available in amounts ranging from $100 to $2500 and can be obtained from banks, credit unions, or online lenders. However, the majority of Americans, 12 million each year, prefer to borrow money from online lenders because their requirements are not stringent and the application process is simple.
A fast cash advance has a very easy application process that can be completed within a few minutes. Furthermore, the borrowed funds are available as soon as the request is approved. Quick cash advances, like all unsecured loans, do not require any collateral, such as a borrower’s home or car. Thus, these products can be lifesavers if you borrow responsibly and make sure to repay all debts on time.
Interest Rates for Fast Cash Loans
A typical cash advance costs between $10 and $30 for every $100 borrowed over the course of two weeks. Many lenders will also allow borrowers to roll over the debt if they are unable to make the repayment on time.
A rollover is the renewal of a debt. It means that you would only have to pay interest and would be able to repay the borrowed amount with your next paycheck, but you would also have to pay additional fees for the extended period of borrowing. The CFPB states that no more than three rollover credits may be made in a 12-month period.
Fast Cash Loan Lenders’ Requirements
Borrowers must earn at least $1,000 per month and provide the following information to qualify for a fast cash advance:
- home address
- email address
- phone number
- a valid checking account
- a valid driver's license
- Social Security Number
- government-issued ID
- a few pay stubs to confirm employment, wages, and pay dates.
Also note that borrowers must be at least 18 years old to qualify according to the Consumer Financial Protection Bureau (CFPB).
Consumer Protections
The Consumer Financial Protection Bureau established consumer protection rules for credit products. First, the Bureau considers it an unfair and abusive practice for a lender to make short-term and longer-term debts with balloon payments without reasonably determining that customers have the ability to pay back the money. These rules are known as mandatory underwriting provisions.
Second, the rule identifies it as an abusive practice to attempt to withdraw payment from a borrower's account after 2 sequential payment attempts have failed, unless the lender obtains the client's new and specific authorization to make further withdrawals from the account.
Simultaneous Borrowing Limits
Several states limit the number of credits that a client can have at any given time. In some cases, these limits apply to each borrower and each lender. In other cases, these limits are per borrower, and lenders are expected to inquire about the borrower's payday loan debts from other lenders or consult a state-level database. While most states do not restrict concurrent borrowing, those that do generally limit borrowers to one or two loans per lender.
How to Pay Back a Quick Cash Loan?
All you have to do to repay the credit is write a post-dated check for the amount borrowed. The interest rate is typically added to the principal amount. You hand over the check to the lender, who will cash it on the due date.
What is the Principal Loan Amount?
The principal amount of the loan is the initial amount you agreed to repay. As you make payments, the principal balance decreases over time. However, because you also pay interest on credit, only a portion of your recurring payments go toward paying down the principal. The interest is what you pay for the privilege of borrowing money. Thus, monthly payment for most loans is divided into principal and interest.
Borrowers with cash advances, on the other hand, do not have the option of repaying the debt for several months. The funds are only due for one month. As a result, when you repay the debt, you simply pay the principal plus interest all at once.
Why Opt for a Fast Cash Loan
You should have a good reason for taking out a loan. Borrowers usually use small borrowings to cover an important bill that they need to pay in the middle of the month but do not have enough finances to do so. Quick cash advances are suitable to cover utilities, rent, or a small emergency cost that pops up unexpectedly.
Fast Cash Loan Payback Strategy
Even if a fast cash loan can alleviate some of your stress, you should have a strong plan on how to pay it back in order not to fall into a cycle of debts. A payback strategy assists you in repaying on time, and it is preferable to plan ahead of time so that you can pay back effortlessly before the due date. In this situation, proper budgeting with your next paycheck is a clever idea.
What is a Cycle of Debt?
A debt cycle is characterized by continuous borrowing that leads to increased debt, rising costs, and potential default. Interest costs become a significant monthly expense, and the debt grows even faster. In such cases, you may be forced to take out money to pay off existing debts or simply to meet the required minimum payments.
How to Get Out of Debt Cycle?
Recognizing that you have too much debt is the first step toward breaking free from the debt cycle. When you recognize the need to get out of debt, begin working to solve the issue:
- understand your financial situation
- make a spending plan
- change your spending patterns
- Live within Your Means
- get a part-time job
- make provisions for emergencies.
About Loan Denials
Although a fast cash loan is one of the easiest to obtain, you may still be denied for a variety of reasons. The most common reason is that you did not meet the eligibility criteria and did not provide accurate information when applying for the loan. If you want to reduce your chances of being denied, make sure you include accurate and complete information in your applications.
Unlike traditional loans, approving for short-term borrowings does not require a credit history to be approved. There will be no hard credit inquiries because online lenders do not check your credit, which can lower your credit score.
Small loans do not help you build credit because they are not normally reported to credit bureaus, even if you pay them back on time. Online lenders typically report your non-payment information to credit bureaus only if it is sent to collections. So, while this option cannot help you build credit, it can harm your credit if you are not cautious.
In Case of Default
If you fail to pay a payday lender for an extended period of time, they can take you to court and seek a judgment against you for failure to repay a debt. If a judgment is entered against you, you may face wage garnishment or other penalties.
However, keep in mind that lenders do not have the authority to threaten you with jail if you do not repay the debt. If you receive these threats, consider seeking assistance from a local nonprofit debt management organization, an Accredited Financial Counselor, or a Certified Credit Counselor who can assist you with your specific needs.
Payday lending is governed by state legislation. Unfortunately, not all states permit the use of fast cash loans. However, 37 states have specific statutes that allow for payday lending, according to the National Conference of State Legislatures. In thirty-two states, high-cost payday lending is permitted by state laws or regulations. Colorado, Montana, New Hampshire, and South Dakota have set a maximum of 36% cap on fast cash loan interest rates.
Emeraldslending Fast Cash Loans
Do you need money right away? Rely on our platform to get the loans you require. Our clients can rest assured that they are in the hands of people who are trustworthy, friendly, and welcoming. Emeraldslending is committed to your progress and strives to provide reliable financial services.
Emeraldslending makes it easy to request the cash you need and it won't take hours to fill out the online form. You should simply share the needed data, submit it and wait for the final decision.
In general, our third-party lenders make decisions in a matter of minutes and notify you of their decision. Before money is deposited into your account, the process usually requires you to contact the lender. If everything is clear with the lender's specific requirements (if any), he will send you an agreement to sign and return to him as a sign of consent.
It is usually advised to thoroughly read and comprehend the agreement before signing it. If you have any questions, you should contact the lender right away to clarify any fuzzy issues so that you have a clear understanding of the entire borrowing procedure.
If everything is well-explained to you and no more questions are left, you agree to have money transferred directly into your bank account.
Clients About Emeraldslending
Emeraldslending has delighted a number of customers by providing no credit check loans such as fast cash, payday, and bad credit loans. Customers are pleased with our platform's dependable lenders and quick response time. Furthermore, because we work entirely for free, hundreds of new people choose our lender-connecting services each year.
Interesting Facts on Fast Cash Loans
- Fast cash advances are more popular than any other type worldwide.
- Approximately 12 million Americans rely on payday advances each year.
- In the states where borrowing more than once is permitted, the average borrower obtains eight fast credit per year.
- About 50% of payday advances are renewed or rolled over.
- Thirty-two states permit high-interest payday lending.
- Fast cash loans made to military service members and their families are subject to a 36 percent APR cap.
- The average payday amount is less than $500.
- While the average paycheck advance has a two-week repayment period, many consumers do not repay their loans for an average of 175 days.
- Online lenders outnumber McDonald's in the United States.
.png)