Instant cash loans are an excellent means to have easy access to fast cash, such as a cash advance, when you’re in a bind, such as a car break down or medical emergency. But these types of loans are unfortunately still part of a larger industry with a dismal reputation for being extremely dangerous and predatory to its consumers. Because payday lenders take advantage of people who don’t really have a problem, the industry is a major player in what many people regard as an unnecessary source of money that drains away from already struggling families. If you really do need cash before your next payday then this is a great option. But if you end up in trouble and find yourself in the position where you need the money urgently, then these types of loans can cause problems.
One reason that these lenders may seem tempting is that they offer an instant cash loans facility, without requiring a credit check, security deposit, or in some cases even a cosigner. They also tend to be very quick to process, often in less than 24 hours. This has contributed to their growing popularity in recent years. But there are also many dangers. Here’s a look at how some common problems can occur when you’re considering taking out an instant cash loan.
First of all, a lot of people who use these types of fast cash loans don’t even know their credit score. This is a real problem. Not only do people with bad credit risk losing out on potentially good deals, but also they may end up paying a higher interest rate because their credit score isn’t good enough. The good news is that there are companies that specialize in helping people find good lenders who will accept their bad credit fast cash loan, but they do tend to charge very high interest rates. The best approach to take is to find lenders who will accept your bad credit fast cash loan but charge you a lower interest rate – and this is something that you can do if you have the proper preparation.
A quick way to improve your credit scores is to get a copy of your credit report and score once a year from all three major credit reporting agencies. You should also pay careful attention to your financial records and make sure that you don’t forget anything important. If you’re thinking about applying for instant cash loans, make sure that you avoid getting charged a fee for a background check (which is sometimes included with the application). Sometimes it can hurt your credit scores to get a credit check done. But there’s no need to be discouraged. There are plenty of lenders online who will gladly do a pre-approval background check if requested.
Some people have bad credit scores because they’ve been irresponsible in paying bills. If you haven’t paid your bills on time and have missed payments in the past, lenders will consider you to be high-risk. This means that they won’t offer you a fast cash loan unless there is a very real chance that you’ll be able to repay the debt. In order to apply for instant cash loans with good credit history, you may want to start paying off your bills and developing a positive payment history. The longer it takes you to start building a better payment history, the more likely lenders are to give you their money.
Unfortunately, some lenders try to charge hidden fees when they provide borrowers with instant cash loans. These hidden fees are designed to add quite a bit of extra expense onto the actual cash advance. In fact, some lenders will charge as much as 24% on the loan’s total cost even if the repayment plan includes a reasonable repayment plan. If you’re considering getting a quick cash loan, you should always check to see if the lender will tack on hidden fees.
Another thing to be careful of is the length of the repayment period. Most online lenders like possible interest rates of around two weeks, but some lenders like possible repayment periods of up to six months. Be sure you understand the repayment period before you agree to any kind of instant cash loans because the shorter the repayment period, the more expensive the loan. Also, be sure the interest rate is not determined by your credit score; in general, the higher the FICO score, the lower the interest rate.
You should also keep in mind that most online instant cash loans lenders like possible upfront fees. You can usually choose to pay these fees on a monthly basis or in advance, so you know exactly what you’ll be paying. In fact, there are many instant cash loans that offer the flexibility of offering a small fee upfront, and then collecting it from your monthly payments. This way, you know exactly what fees you’ll be paying and you can budget accordingly. For most borrowers, this makes instant cash loans with poor credit scores very affordable.