What Exactly Is A Quick Cash Loan?
Sometimes we hit roadblocks in our lives that take the money out of our wallets before we can say ‘dollar’. You may be hit with a medical emergency, utility failures, vehicle repairs, home repairs, or even a loss of a loved one, and now your bank account is looking as naked as an arid desert.
When faced with this, you might need cash, and fast, and so most people’s minds will zip towards loans, and how they can get one as fast as possible – especially when it comes to paying emergency medical bills.
However, getting a loan fast often means quick cash loans, and we do not really recommend this. Why? They do not exactly offer the best. While you get your money fast, and when you need it, they are well known for trapping you in a cycle of debt.
The application process is quick and speedy, and you will have your borrowed cash as soon as your application is approved. Perfect right?
Well, let’s tell you some more.
These loans are usually unsecured, and they are short term, lenders typically skyrocket these with higher interest rates than you’d find at a bank, or with any other loan.
They can be a brilliant way to get fast cash in an emergency, but these should never be used regularly, because you can get trapped so fast, almost as fast as you got the loan. How so? It’s those high interest rates!
These are fast cash loans, and can work well, but only if you absolutely need them!
One type of quick cash loans is payday loans, and these are the ones you should be wary of. Another type is personal loans, although these tend to have better interest rates and are often more reliable and reasonable.
Payday loans are named so to help you make it from one paycheck to the next, however, with interest rates so high, you typically end up spending half your next paycheck paying it back, thus requiring you to take out another loan to pay off the rest of your bills. And so, the cycle begins.
They have high interest rates as they are short term, and lenders of these loans will usually accept lower credit scores from their borrowers. Of course, the amount you can borrow will depend on your credit score, so it is always wise to build this up for better deals.
They have high interest rates, rollover debt, and in the past, some questionable lender behaviors. This makes some payday loans rather like financial predators. So, be cautious when you take out any payday loan, and if you can, we really recommend personal loans instead.
Personal loans are the favorite here, not that we are biased or anything. They often have lower interest rates in comparison to the alternative. And instead of having to pay back the whole loan and interest within a measly two weeks, you pay over a series of monthly payments, making each payment smaller, and it is easier to bear.
Of course, this depends entirely on the size of the loan, however, thanks to them using monthly installments instead of one massive lump sum payment like payday loans, they are more user-friendly.
Personal Loans also include many other types of loans, and so these types are typically seen as the most popular type of loan to be taken out. Of course, the debt is strung out over a series of months, but it is easier to pay off, and you are less likely to be stuck in a cycle of debt by the end of it.
Why Do They Have Such A Bad Rap?
Quick cash loans get a bit of a bad rap sometimes, and this is mainly down to the payday loan cycle we were talking about earlier. Not all online payday loan lenders are reputable, and sometimes their practices aren’t totally what you would want.
This means that there have been plenty of instances where people have taken out payday loans and got stuck repeatedly needing to take another out to pay off the last one.
Not all payday loans are bad though, some can be good, and it is all down to your own financial intelligence to pick the right lenders, and to make sure you can afford to pay the loan off.
All in all, quick cash loans are speedy, fast, with breezy applications and fast payments. They might all seem bad, but if you are smart about it, they can be a real lifesaver sometimes.