We all go through situations where only one thought circles our mind. “I want money NOW”. A financial emergency brought about by some minor crisis at home, like an accident, like someone broke a knee or a hand. Children’s activity in school, or some other financial contingency and the lack of enough funds… we have all suffered through one of these situations. Thank god for Cash Advance loans. But don’t let your decisions be based solely on your need for money. Every single decision of our lives must be informed. Read on to find out more about all that you need to keep in mind before taking out a cash advance loan.
Applying for a loan is not a very convenient or easy process. It takes time. You have to go through the paperwork, and wait for the approval. There are many requirements that your request for a loan must meet. Some loans, such as a mortgage or a car loan, are examined very carefully and the requirement lists are lengthy. They are also compared with similar applications. Where money is involved, people tend to be more careful and a large cash loan means closer scrutiny. Also, we have to offer something for collateral while applying for large loans. It gets time consuming. What do you do if you need to borrow money immediately? You should consider applying for a quick payday loan.
Quick Payday Loans are fast cash loans offered to someone within 24hrs of placing a request. The parties enter into a contract and once signed, the loaning agencies provide you the desired amount of money. These are unsecured loans, that is, they don’t require any collateral, or the masses of paperwork. Such loans are quick to get, but that doesn’t mean you don’t need to be cautious. Read the terms of the contract carefully. You don’t want to pay for a higher amount than you borrowed, or pay multitudes of hidden fees. You must be mindful of the repayment date. Also, you need to be sure of the amount that you seek to borrow. If it is under $5000, Quick Payday Loans are an excellent option.
Choose the agency after a lot of deliberation and research. The marketplace is flooded with agencies that provide a fast cash loan. Don’t be cuckold. Look, think, scrutinize. Even the virtual marketplace offers a lot of lending agencies that provide people with fast cash loans. Again be very careful. See how established the agency is and whether it is licensed to work as a fast cash lending agency. Read the terms and conditions of the contract. Read the fine print carefully and deliberately. Pay special attention to the repayment date, the interest rate charged and clauses that could involve hidden fees and the grace period involved in case of a delay in repayment of the loan.
You should try asking your friends and relatives for such agencies too. We all go through situations of immediate cash crunch. They might be able to recommend you a few agencies that might be tailor made for you too!
Families that are on the struggling side will find that the low cost cash advances can save a lot of trouble for them, and they help in bridging the gap created by the timings of the successive salaries. With the low cost cash advances, people who have an emergency at their home like a gas, electricity or drug prescription issues can get fast cash and that too in a jiffy. This makes sense because it solves the situation at hand and makes the entire event a lot less stressful.
The reasons why one should opt for these low cash advances are many. For one, they help you in times of need when you are in urgent need of money and a couple of hundred dollars is enough to satiate the demands of the situation. There are many other reasons which are given below.
*Medical emergencies – It does not matter what the money is used for in the event of a medical emergency. The fact is that health is of supreme importance and more so if you put the family and the loved ones into perspective. The low cost cash advance will ensure that the all important health checkups are duly done and you have the money to pay the bills until next payday. In fact there are many Americans who simply do not get the health checkups that they deserve because of the fact that they don’t have enough money at the spur of the moment.
* Towing or broken down car repairs expenses – If you are stranded at the side of the road and you have no other option left but to get the urgent repairs get going, then the low cash advance will be your only friend in the time of need, and it will help you get rid of a lot of stress that might potentially crop up at the spur of the moment. There are many of us who have online banking as a tool and we have the payments scheduled for us weeks ahead. In such a scenario it is vitally important that you get over the situation by having quick cash from the low cost advance loan.
*Credit card payment coming before your paycheck? Don’t go in to the temptation of paying up late and lamenting over it for years to come. Instead, what you should do is to end the matter altogether in such situations by having a quick cash flow from the low cost cash advance, which will fill the void of you having to wait till your salary comes up. This makes you more ready for action as and when the need arises.
*The utility payments are more important than you can ever think of. There are a lot of unexpected emergencies that you will be forced to go through in your period of a month and it is very important that you plan ahead and don’t be rash with things. Imagine your frustration when in the peak winter you have no money and your electricity was cut short simply because you did not pay the bill. With short term low cost cash advances you can salvage the situation and ensure that you have the warmth and the comfort of your home restored. You will see now why low cost cash advances are so important.
*Grocery shopping – You can actually be quite flexible with your grocery requirements and as far as food is concerned, it all depends on you. You can either stock up on the freezer or if you want, you can go without meat for a week and ensure that you don’t eat outside as well. In short, you are cutting down on your expenses in any way you can, and if the emergency arises, you can always opt for a low cost cash advance plan that will ensure that you have food on your table for at least a few days more.
Another thing to take into consideration is that you should only borrow what you most absolutely feel is necessary. There is no point going for more, if you don’t want it. This will ensure that you will be able to pay up in a better and more efficient way as and when the need arises.
The Federal Deposit Insurance Corporation (FDIC) has introduced a program in which banks can actually offer loans that are small enough so that they are attractive to buyers, just like the payday loans. But the competition is stiff, and this program is not doing well apparently.
The FDIC came to know that there were only 31% of the banks that actually participated, and during the 4 years of the implementation, there were only 5.5 million bucks that were generated by 8300 dollars loans by the banks themselves. On contrast, the payday loans are much bigger, going over 150 million loans that sum up to billions of dollars.
The FDIC did an interesting survey and study, and found out the real reason why the lowered rates from the banks were not working out. The simple fact was that the customer was still paying the same to the bank as before, due to the fact that the bank payment terms were significantly longer than those of the payday loan lenders. Even if the participating banks made two or three times the loans as the payday lenders, the business was not that great as compared to the payday money lenders due to the above reason. On an average the small dollar loan at a bank is $675 and the average rate of interest is about 15%. Loan terms from banks are about 10 to 12 months.
The payday money lenders on the other hand, and depending upon the state that you are in, will have a capped amount on the money being lent and the amount is usually in the range of $200-1000 in most cases. On a yearly average, the interest rates for the money lenders is as much as 500%, but because of the fact that the loan terms last only for few weeks, the user is still on the profit side because he does not pay the same interest as he would in the case of a bank. There can only be a problem if the borrower makes a choice to get a rollover, meaning that he chooses to extend the loan, in which case he will have to pay more.
Good deals on small dollar loans, is not what the traditional banks are gunning after. But they do look for prospects of building a good relationship with customers with the same. Through this program, the banks see greater and better opportunities of getting more and more customers to sign up.
Perhaps the greatest asset for payday loan lenders is the fact that customers have a lot of convenience. The process is actually a very simple affair of just filling an online form, filling in all the details, giving out the statements for the bank, the salary details and the like, and it’s even possible that the loan gets sanctioned on the very day. This sort of convenience is the winning formula behind the success of the payday loan lenders, and is one of the major reasons why the banking sector is not able to keep up. So we can say that the key factor here is convenience.
In a general scenario, the money lender will work out a schedule for payment based on the schedule of the borrower, and once that has been done, he expects that the borrower to return the money on the next paycheck. In cases of failure, the loan amount can be increased and this means that the borrower gets more time to repay the debt. The biggest plus point is that there is no check record because checks do not form part of the business, and that’s what makes this exercise much better than the traditional method of applying for loans at a bank.