What is a Fast Cash Loan? [Know All Guide]
Talking about a loan, it is one of the most known words in our dictionary. At some point, each of us require a loan, and there could be multiple reasons for taking a loan such as – When we want to purchase a house or a new car, education loan, business loans etc.
There is something known as the ‘Fast Cash Loan’ that not many of us know.
What is a Fast Personal Loan or Fast Cash Loan?
As the name suggests, a fast cash loan is the loan type that one can apply for when they need immediate funds. The funds get credited to your account directly rapidly. Typically, the duration of fast cash loans is very less, which implies quick cash loans get proceeded within one hour, which means that the borrower gets access to the funds immediately whenever they require. Fast cash loans come handy when an individual wants funds on the spot for some emergency.
There is nobody who has enough funds throughout; we all face the situation of being short on cash once in a while. Especially when we require funds, that is when our luck does not support us, and we are short of cash. Sadly, we all have dealt with the past situation, and there is no guarantee that we won’t deal with this situation again.
For instance – A half month has passed the current month, and you are full-on following the budget you had promised to follow. Everything seems to be on track when suddenly an unexpected expense comes up – A car breaks down, medical expense, laptop or phone not working or any other expense for which you had not planned.
Emergencies never give an invitation, and they land up at our door at the most unexpected time, especially when you are short on cash.
With our budget so packed up, there is hardly any room for added expenses that we keep getting stuck into. Then in such a situation, what do we do?
Majority of us turn out to an expensive bank overdraft or request the financial institutions to increase our credit limits. Although these are effective options no doubt, they are lengthy, and these options involve a considerable amount of paperwork and have high-interest rates. Moreover, there is no guarantee that you will get instant cash, as the lender check out multiple factors before actually considering your request.
Hence, this is precisely where the role of fast cash loan comes into the picture. The entire concept of fast cash loan has been made so that it allows individuals to get instant cash at the earliest. With the help of instant cash loan, you can immediately get funds to pay for your immediate unwanted expenses and keep your finances and budget intact. This allows you to pay all your short-term funds on time at the end of every month, without harming your credit score.
What are the Different Types of Fast Cash Loans?
Access to credit from any source is a challenging task. When it comes to fast loans, you do not need to set up an appointment. The loan procedure is simple and straightforward.
There are many options when it comes to getting fast cash loans. Let us dive deep into the different types.
1. Personal Loans:
In terms of personal loans, you apply for a loan from a bank, online lender, credit union, etc. Personal loans do not require you to qualify for collateral. Instead, the lender will evaluate your past credit history.
For your Loan to Get Approved:
Credit: Lenders go through the credit report in-depth to analyze your past borrowings and debts. A positive history of paying back your borrowings helps in getting the loan amount approved quicker.
- Income: For your loan to get approved, the lenders need to verify if you have enough income to repay the loan amount you are applying for. For this, you might have to submit your income statement, employee history documents, etc. The debt to income ratio also plays a crucial role in comparing the monthly income to the monthly debt payment.
Although the lenders need to review the finances, these loans can get accepted quickly too. In many cases, you can receive the funds on the same day you apply for them. The general duration of repaying of personal loan is five years, but other terms apply.
2. Online Lenders:
If you are someone who has absolutely no history of borrowing, then you might have an edge over the lenders who use predictive analytics technology or make use of alternative information such as your career, education history, etc. to sanction the loan. Although online lenders, the entire process is handling remotely, the process ends up moving extremely fast, and you might end up receiving funds within a few days.
3. Peer-to-peer (P2P) loans:
Not a very common loan type, P2P loans are known as the subset of the online lenders offering loans. There are various online platforms which give you access to borrow loan from other sources apart from the investors or traditional banks. The practice is common, though. There could be a huge chunk of the group, which has surplus money, and these individuals make their extra funds available to the borrowers. The P2P market places handle the logistics of connecting the lenders and the borrowers through application review and payment processing.
4. Payday Alternative Loans (PALs):
Especially in the case of small loans, credit unions are the ones who offer payday alternative loans. This is primarily done to prevent the customers from using the loans, which are high cost. Due to the federal rules limiting application fees, a lower rate of interests bounded by PALs, and a long repayment duration allows PALs to be a better option for fast cash loans than payday loans.
5. Auto Title Loans:
Title loans allow individuals to get instant cash in their vehicle as collateral. For the borrower to use these products as collateral, they will be required to have a paid-off car. In the case of borrowing, the ownership interest temporarily gets transferred to the lender, who keeps the vehicle as a security until the borrower ends up paying off the entire debt. If the borrower fails to pay back the loan amount, then the lender has access to repossess the vehicle.
How to Apply for Fast Cash Loan?
Unforeseen expenses are a part of life and can occur suddenly in our lives, and avoiding them is indeed not in our hands. Hence, after so much mental pressure, the process of obtaining funds should be simple. The method of fast cash loans is straightforward, which is this option is considered one of the most sorted options to avail instant cash. To apply for quick cash loans, you will be required to follow these simple steps:
- Personal Details: Lender will require to fill out all the borrower’s personal details such as full name, complete permanent and current address, phone number, parents’ details, current occupation, address of the office, name of references etc.
- Contact Details: The borrower will be required to give out your contact details and alternative contact details.
- Employment Details: Employment details are a must, as the Lender wants to be sure that the borrower can repay the loan without defaulting.
- Financial Details: The borrower will be required to disclose all of their financial details such as bank account names, past credit history, payment and income receipts etc. Before giving out the loan amount, Lender will do a thorough background check of the financial details.
All of the information mentioned above is a must for identification by the Lender. The Lender is required to run the necessary credit checks. Once the borrower truly fills all the fields, post that the credit score is calculated. As stated above, in terms of fast cash loans, one does not require to offer collateral against the loan. However, the Lender will need some assured, and for that purpose, the credit score is checked. For a borrower, it is essential to have a decent credit score. Although the borrower is not required to have a top-notch credit score, a score above 570 is ideal for getting an instant fast loan.
If the borrower has a low credit score, he or she can easily face trouble in getting a fast cash loan.
Advantages of Fast Cash Loans in a Nutshell
The primary benefit of fast cash loan is that the borrower gets the sum of money in terms of the loan asked, instantly, if all the criteria are fulfilled. Unlike other sources to get loans, a fast cash loan does justice to its name and immediately offers loans. Within a few hours, the loan amount will be credited into the account of the borrower. All that the borrower has to do is submit an application by mentioning authentic details, and then he or she is good too if they have a decent credit score.
There are times when personal expenses increase, but income remains the same. In such a case, we do require additional funds to meet our personal expenses which are unavoidable. In case of lack of funds, it can make the process of daily living challenging and stressful. The concept of fast cash loans emerged to allow individuals to live a stress-free life by giving them access to instant cash whenever they require.
Also end up not meeting your cost by defaulting the bills’ payments, or not repaying your loan amount on time, will negatively affect your credit score. A low credit score is the last thing you could want, as it will end up creating enormous problems for you in future. Anytime you want to seek credit in the future, the credit score is the first thing checked. Hence, maintaining a decent credit score is essential.
Be Responsible with Fast Cash Loans
The problems with fast cash loans are that borrowers tend to get comfortable and start misusing it since they are readily available. You should only borrow money when there is a dire need or in case of emergency. Secondly, only borrow what you need, and in greed do not end up borrowing an extra sum. It will hurt your pocket later.