Can a Quick Cash Loan Still Your Thirst for Cash?

You can come across several names for the same financial deal between a borrower and creditor. Quick cash loan, payday loan, instant loan, cash advance loan, post-dated check loan, deferred deposit check loan or check advance loan - all of these are the names for a small short-term loan you can get when you need cash.

When you face some unexpected situation, have no money or maxed out your credit card, but still got bills to pay or just badly need cash, lenders offer you to use an option of taking a quick cash loan. This is how it works.

You apply for a pay day loan. You can either go straight to a bank, or fill out an online application. And as soon as the next day, you can have from $100 to $1,000, on the average, on your account. You just write out a personal check to the lender for the amount of cash you need adding to the sum. Or you can also make an electronic withdrawal from your checking account on the due date.

You will, most probably, have no problems with getting an instant payday loan. The qualifying criteria are way much easier to meet than it is with getting a credit card. You are to be a US citizen of 18 or over, and you need to have a steady job, of more than three months old that gives you an income of at least $1,000 a month. Plus you will need an active savings account.

These are the basic requirements you are to meet when applying for payday loans. You will not need to provide a lender with tons of papers concerning your credit report, credit score and your personal information associated with your credit history.

So, you can get a small instant credit really fast and pretty easy. And that is a good thing. But it is worth mentioning that this is a good part about fast cash.

All credit card holders value low APR credit cards. If you manage to get an interest rate under 10%, you have all rights to say that you are a lucky owner of an extremely beneficial deal. And that is true. But would you even apply for a credit card with 390% to 900% APR? I bet you would not. These are the actual rates that pay day loans come with.

But since such loans are short-term ones, and you are to repay the money within 1 to 4 weeks, you do not lose that much on the interest. However, if you "roll-over" or extend your payday loan, you will end up paying sky-high interest rate for some $200-$300 you have borrowed.

Say, you borrow $300. You will have to pay back those $300, plus a fee of $45 per 2 weeks of using the loan. But if you get caught in a vicious circle of extending such quick loans for an additional fee, of course, you will lose much money and can damage your credit score.

Even if you badly need quick cash, remember about other options that you have.

• Think about taking a small loan from your bank or credit union
• Ask your employer to give you a payday cash advance
• Consider borrowing money from someone of your friend or relatives
• Try to shift your payment due dates if possible
• Even taking a cash advance from your credit card will cost you cheaper than a payday loan.

So, these are the alternatives to quick cash loans.

But if you are determined to take a payday loan, make sure it will be a one-time loan and you will be able to pay it back as soon as you get your next paycheck.

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