Cash loans are short term and secure loans that can be applied and processed online in hours. The applicant is required to fill out a short application form whereupon he gets an instant preapproval or rejection. If the application is successful, the lender will confirm all the details supplied before the loan is processed. Normally, the applicant will receive the money within 2 days. However, there are lenders who will deposit the cash in your bank account within a period of 24 hours.
The procedure for applying cash loans vary from one lender to another. In most cases, it takes 5 minutes only for the returning customers to fill the form. New clients may need about 20 minutes to fill the application form. These forms can be downloaded and filled online. You can use a computer, a tablet or Smartphone to complete the application form.
Once the application has been submitted, a quick check will be done before the loan is processed and forwarded to your bank.
While a few lenders perform credit checks, most lenders will not perform the checks. Those who opt to perform the checks may do so through Experian, Trans Union and Equifax. A credit check is necessary and may be used to determine credit worthiness.
The Amount of Money That Can Be Borrowed
The amount of money you receive varies and will be determined by the information you give. In most cases, the amount ranges from $400-10001. The approved amount will be determined by your payment history and the general information you provide.
If you are a returning customer, the amount you can borrow may be increased depending on your previous payment record.
It should be remembered that cash loans are expensive and are only meant to assist one meet short term borrowing needs. They should not be used to provide long term financial solutions. The loans are meant to help one deal with emergencies such as medical bills, rent, car repair, or job related problems. For funding long term financial needs, it is recommended that you seek alternative sources of funding.
Normally, the annual percentage rate applied on the loan depends on the payment period. The rate may be prohibitive, thus, it is advisable that you consider whether you can comfortably pay the loan before you borrow. Any late payment may attract late fees and costly collection activities.
In most cases, the amount of money you get may be regulated by the state. In some states, there are rules that guide cash loans. Ideally, financial institutions should not give more than 20% of one’s monthly income. If you are already in debts, the lender may restrict the amount you receive depending on the current situation of the lender.
However, most lenders are lenient; all they need is a proof that you have a regular income. Thus, your credit score and rating may not affect the lenders decision. If your financial situation is good, you will be considered for the loan.