My Tips For Getting A Cash Loan
So you want to get a cash loan? Well here is my story and why I am writing this for you to read! Early in 2016, I found my self-needing to get a cash loan. It was the first time I had ever been in this position but with a bunch of bills piling up, a recent change in job and then a single unfortunate accident. I found myself being out of pocket and not wanting to ask a friend or family member for assistance, as you all know asking for money can be one of the hardest things you can do. That’s when I thought the best option would be to find a cash loan that would best suit my situation and get me out of my pickle.
So, I got researching to try and find the best cash loan for my situation. I knew a colleague of mine who had done it a number of time as they were trying to get back on their feet after a messy divorce, so I did pick their brain a little about what payday loans they had taken out in the past.
My mind started to explode as he dived into all the detail; interest rates, payment plans, missed payments, additional fees for not meeting obligations, what paper work I may have to provide to secure my cash loan. It began to be overwhelming; all I needed was about 5k to get me across the line. His final advice was just to jump online and he gave me a couple of providers to look at. He said getting a cash loan is easy providing you have all your ducks in line and the necessary paperwork. But most importantly the means to make the repayments in line with the loan schedule and fulfill your obligation. In short he said I was a good candidate. I followed his lead.
I jumped online and looked at a number of links, some seemed legitimately straightforward, some providers had great websites and easy to understand information regarding their cash loans. But others seemed to be a little fishy. I did end up taking his advice and went with a cash loan provider he said was probably the simplest and most straight forward for my situation.
Applying for my cash loan online was super simple. I literally just entered in my details, how much I earn, what Ideally I’d like to borrow and I set up an account. I could even submit my pay slips, ID requirements all within a matter of minutes. Now, not all cash loan providers work in the same way each have their own process, so it is good to properly understand what their process is before beginning.
The first time you borrow with a cash loan provider, in most cases there was a review process. In my case it only took a day to review my documentation and approve my loan. However, once I was set up with this provider. I was approved for subsequent loans in a shorter amount of time, but I could only have one active loan at a time.
So a little about the cash loan I secured. I secured a loan of about $4k, this particular loan was simple, my fees were a lump sump one of a large percentage of the loan approximately 18% and a monthly fee of around 6%. So I knew what I was going into straight away. This was clearly not the most effective way of lending but that is the cash loan market, higher interest rates and establishment fees, which result in access to quick and easy money. Regardless of this I didn’t think too much about it, as I was in the position of just needing the money to get work done.
Fortunately for me I managed to pay the loan off a little quicker and saved on the monthly interest rates. However, when reading the terms and conditions of the loans, there are considerable penalties if I failed to meet my end of the bargain. These included daily penalty fees which would quickly add up.
My cash loan was relatively simple and straight forward, but one thing I couldn’t find online was a great guide to the things you just want to know and should know before getting a cash loan. Understanding the basics. So, I put together a bit of a guide.
Cash loans can be helpful in times of need, but there is also the flipside like my colleagues experience, he had admitted to me it was an easy line of credit and he would bounce from one loan to the next. This is where it can get problematic and also if you cannot comfortable meet the repayments you may find yourself in a pickle.
So it’s great to be informed to make a sensible decision. This is not financial advise by any means it is just information regarding the cash loan market and what to expect. If in doubt about getting a loan, you can always reach out to a financial advisor and see if it is your best option in the situation. In the meantime, I hope this guide helps a little.
How to Choose A Cash Loan
Cash loans are designed for short term needs. It doesn’t mean that you can just use anyone to fund the money you need. When choosing who you want to have as your lender, you need to consider the following:
- Lending Rates. Because cash loans are supposed to be for special cases, they also have a higher interest rate than other types of loans. There are now regulations as to how high the interest rate can increase. Some lenders have a cap on lending rates, while others have a lower interest rate. When you shop for cash loans, look for those who can give you the best value for your cash loan.
- Ease of application process. Because you are looking into a cash loan, it means you need the money urgently. Select a provider with a good online policy so you can have access to the application as well as updates on your cash loan.
- Document required. Sometimes, you need to get your cash loan extremely quickly; however, there are some requirements that will take you a long time to fill out. Check out providers that require only what is needed. This might include minor documents, copies of your pay slip, ID cards, and proof of your employment.
- Payment terms. You can manage your finances to a greater degree by studying the payment options for your cash loan. You can select between long term or short term payment terms, as long as it is an option for you.
- In order to make your life simpler, you need to choose a lender that has an office in your location or state. This will help make your transactions more convenient.
What Are Cash Loan Interest Rates
Cash loans are an easy way of paying for breathing room in your budget or for an emergency expense; however, getting one is not free. Short term cash loans are longer-term installment loans. If your pay day is 7 days away, but you are running out of gas, you can always apply for a cash loan. A cash loan can help you get the money you need. A short-term cash loan can help you—all for a flat fee. In addition, if you need a much bigger loan, there is a good chance that you’ll need a longer time to pay it off. A cash loan with multiple fixed payments might be your answer. Instead of having a flat fee, your cash loan will accumulate interest daily until your balance is paid off. The amount of interest you pay on a cash loan depends on your location and provider.
What To Expect When Applying For A Cash Loan
Applying for a cash loan is extremely easy, with many lenders giving you online applications. You can find out if you may be approved before applying for the loan. Some lenders will provide you with credit qualifications, such as your minimum credit score. Just how fast you are approved for your cash loan will depend on the lender. If you are rejected for a cash loan, the lender will provide you with a letter that explains why you didn’t qualify for the loan.
You can get these types of loans that range from $1000 or more than $50,000. If you have a good credit score, you’ll be more likely to get reasonable interest rates on your cash loan. However, some providers simply have their fixed interest rates regardless. Your choices shrink and your payments will begin to increase if you have bad credit or no credit at all. Fortunately, you can find some lenders that are able to give you a loan even if you have a bad credit score.
Here are some things you should know about before applying for a cash loan:
- Credit is important. The interest rates are usually greater than the rates on secured loans or loans that are backed up by your land. Because the rates depend on your credit, having a good credit score can make it easier to locate a low annual percentage rate. Your debt-to income ratio may also be a factor in the amount you are offered an in the approval of your loan.
- You can get a free credit score. You can get your credit score for free. You need to set some goals and track your progress.
- Credit unions. These are not-for progress organizations that generally provide you with the cheapest rates for your cash loan. They may be ready to help you out, even if your credit is less than perfect. They are your best chances if you’re looking for a loan of less than $2,500. Depending on your location, will depend upon if you have access to providers like these.
If you have at least an average credit score, you will find many different options; however, the rates will be higher. Some lenders will take a look at other factors, such as your earnings potential and your job history when they make their underwriting evaluation.
With a poor credit score, you may have better time finding a cash loan if you own property you can use as collateral or if you have a cosigner. If you can find a cosigner, remember that he or she will be responsible for your missed payments. You need to do your best to protect both your credit scores and to honor your agreement. Rates on cash loans from other lenders will be much higher. The can be as much as 36 percent annual percentage rate if your credit is really low.
What you need to apply for a Cash Loan
To apply for a cash loan, these are the documents you need to give to the lender:
- Proof of past income, such as tax returns, bank statements, pay stubs.
- Verification of address, such as a copy of your lease, recent mail, or a utility bill
- Identification, such as a driver’s license or passport
You may also be asked to provide this information:
- Your mother’s maiden name
- Your date of birth
- Any previous addresses you had
- Phone number, email, and address
- Your employer’s work address, phone number, and name
- Your gross income
- Monthly debt obligations (such as student loans and rent)
After giving this information, you’ll need to tell them the amount of money you need to borrow. Some lenders may ask you to decide how much time you require to repay the loan, some will define these terms clearly and give you only a handful of options with various figures. Bear in mind that the longer it takes to pay back the loan, the more you’ll have to pay out in interest payments. You can keep your costs down if you only borrow what you need.
How to find the lowest interest rates on cash loans
Here’s what you should do before agreeing to a cash loan, as your situation may enable you to a more favorable option in relation to interest rates and payment terms. So, you can consider these before going down the path of a cash loan:
- See if you meet the criteria for a zero percent credit card. If your credit is good, you can usually get a cash loan that has a 0 percent interest on purchases that last as long as at least three years. That may be more expensive than getting a personal loan.
- Consider a secured loan. If you have a house, consider putting it up for collateral so you can get a lower rate.
- Try getting a secured loan instead. If you have a house, try using it as collateral so you can get a lower rate. A home equity line of credit or a home equity loan can often be less expensive than an unsecured personal loan. Bear in mind that using something like your house as collateral means that if you fail to pay back the loan, you could lose everything.
- Pay off as much of your credit card balance before you apply. The left over balance of your credit card—even if you pay the loan off at the end of every month, it counts against you when the lender checks your credit.
- Shop around. Your local credit union or bank may have good rates, particularly if you have known them for a long time. However, online lenders offer competitive rates, particularly for those who have good credit.
What to watch out for with cash loans
If you don’t read the fine print in your cash loan agreement, you could find out you’ve paid too much. Look for these things before you sign your cash loan agreement.
- Prepayment penalties. Most lenders don’t charge you a fee if you pay off the loan before it is due. But, just in case, you should definitely look for the phrase “no prepayment penalty” on your loan when you apply.
- Accidental overdrafts. Many lenders will offer a lower annual percentage rate or will ask for automatic withdrawals from your checking account. If you connect your cash loan to your checking account, you might be in danger of having an overdraft on your account. You may have to pay an overdraft fee. It’s only about $35. To avoid draining your checking account, you might want to consider setting up an alert that tells you that you have a low balance.
- Scam artists. Before you sign up for a cash loan, especially if it’s an online loan, you should check out online reviews and try to find out as much as possible about the lender.
Understand your Payments, Interest Rates, and Loans
You need to first make a list of all your loans. For each loan, you will want to know what kind of loan it is, as well as the interest rate and balance.
While it may seem obvious to first pay off the highest interest loan, private variable loans may be an exception. This is because even though the interest rate might be lower than a federally backed fixed-rate loan, the nature of the loan means that increases in interest rates are bound to happen. As the prime interest rate goes up and the economy improves, the interest rate on these types of loans might be more than the rate on the other loans you have within a couple of years.
On a traditional amortized loan, most of the early payments go to paying off the interest. The principle amount you pay off every month increases very slowly. The amount of interest you pay will decrease.
The percentage of each payment goes to paying off the interest rate in the beginning of the loan. The best opportunity to save some money is when the loan is new. Increasing the payments when the loan is early and before most of the interest has been paid, leads to the best savings in interest.
You can make a few extra installments that will be applied toward the principal, decreasing the amount of interest you have to pay over the rest of the loan. Many loan servicers have the requirement that, with every additional payment, you need to specify that the money should go to the principle. If you don’t do this, some of the extra payment may be applied to your interest charges.
While it’s nice if you can double every payment, this is not necessary. Even if $20 to $50 is paid out every month, this will be a measurable amount you save over the lifespan of the loan. You need to use amortization calculator to see how much interest you will save by making extra payments and how much you will be able to shorten your loan. For maximal benefit, take the extra payments and pay off the loan that has the highest interest rate.
Student loans that are federally-backed will come with many types of repayment options that are designed to help people manage their payments. Be wary, however, that choosing the smallest payment you can get can’t extend the life of the loan for many years. It will generally cause greater interest charges by the time the loan is paid off.
Many cash loans will still add on insurance, even when they are not in repayment. Once the loan goes into repayment, the interest rate will be capitalized. That means that it is added on the balance, and the rest of the interest charges are calculated with the higher balance. You will end up paying interest on your interest. The identical thing happens during most forbearances and loan deferments. If you make all your payments when you are in school, you can stay away from dealing with the higher balance when you graduate.
Avoid the grace period. Student loans have a 6-month period after graduation when you don’t have to pay any payments. If you have a job soon after graduating, you need to start paying off the loan. On unsubsidized cash loans, the interest builds up during the grace period, so you will hurt yourself if you allow the interest charges to build up. Interest doesn’t build up during the grace period on subsidized loans; however, establishing a strong payment stance from the start of the loan sets the right tone.
Automatic payments will come with several different kinds of benefits. Of note, many private lenders and all government loans will charge a lower interest rate if you decide to do automatic debits from your bank account every month. The discount is usually about a quarter of one percent. If you don’t do anything else, the discount alone is generally about a quarter of a percent. If you can’t do anything else, this discount could take at least a year or more before the loan can be paid off. Of course, automatic payments can help you stay on track and you will avoid late fees and keep your credit score protected. It is possible to check your credit score using free credit monitoring alerts, and your free credit score through the lender.
Some cash loans are good candidates for consolidation and refinancing. More importantly, you will be able to decrease your interest rate. You can restructure the cash loan if you are eligible. Even if you don’t get a financial benefit from consolidating the loan, it can be beneficial from a management standpoint to reduce all your bills into one.
You need to live modestly. If your new job provides you with an income you’ve never had before, do not increase your standard of living. Instead, you should put your extra funds toward paying off the loan. Try to resist the urge to travel or to buy a new car. Try to avoid spending all your money on credit cards. If you want to be free of debt, put all your resources toward paying off your loan,
No one else will pay the loan for you. Depending on your situation, you might be able to get help paying off your cash loan through outside sources. If you work as a teacher or in public service, you may be able to get your loan forgiven. Paramedics, firefighters, and nurses might be able to qualify for a cash loan as well. .
Taking out a cash loan can help you get rid of your loan and will cover the unexpected costs you might have. You need to look at your options prior to settling on one choice. Look for the lowest rates, repay your debt on time, and borrow only what you need.
Cash Loan Requirements
There will be a number of requirements in place for you to get a cash loan. Cash loan requirements will vary from lender to lender. But here are some of the common things request.
- If applying in-store, you need to bring proof of income and prove that you have a checking account.
- If you are applying online, you need to be able to be in contact by means of a phone, if you need verification of application.
- If you are applying online, you need to have a savings or checking account that has been open for at least a month.
- You must not have a bankruptcy case or be a current debtor. You must not intend to voluntarily file for bankruptcy relieve.
- You need to be at least 18 years old.
- You need to live in the state you choose for your cash loan.
- Generally speaking you need to be employed to have a cash loan (for these candidates it will be straight forward). However, you don’t have to be employed with every lender. You need to have a regular source of income to make sure you can pay back the loan and proof of that income.
Cash Loan Payment Options?
The options for payoff of your cash loan can vary depending on how you decide to apply for the loan. Borrowing options can include applying for a cash loan on time, applying over the phone, applying at a sore location.
Generally, if you take out a cash loan online, your loan payment will automatically take the money out of an automatic payment from your debit account or using a debit card. If you take money from a cash loan store, you usually write out a personal check that is post-dated for your due date. You can also provide the lender with your bank account information. If you don’t have a checking account or would rather that the funds not come out of your checking account, you can take the funds out of a debit card. You might make a payment online or on the phone. You may be able to go to your local store location to pay with a credit card or with cash.
How Fast Do I get My Cash Loan?
Everyone has dealt with financial surprises, such as a forgotten utility bill, a trip to the emergency room, or a broken car. Sometimes you need to get your cash loan quickly. Some personal loans and credit card cash advances can put money in your hands right away. A loan from your credit union or your bank may take a few days before you get your cash loan.
Before you take money from the first lender that approves you, you need to shop around and take a few minutes before you make your decision, particularly if you have bad credit or no credit at all. The trade-off for getting your loan quickly are the higher costs involved.
What if I cannot repay my Cash Loan?
Everyone needs a little bit of extra money every once in a while, which is how good people wind up with a cash loan. You may only need money for medical bills, emergency car repairs, or for food. Some people will take out a cash loan in order to pay off a payday loan. Whether you have just one loan or you have 4-5 loans, you need to pay attention to the details when that are stated in your terms and conditions.
Every lender and provider will be different so I won’t go into too much detail here. Simply state read the fine print about your cash loans and understand things can go wrong. So you need to know exactly what you are signing up to.
Other steps to take on your Cash Loan
These are some steps you should take when taking out a cash loan:
- Never avoid your creditors. When you are behind on a loan, you don’t want to tell the individual that you owe money that you can’t pay back. It Is easier to hope that the debt will disappear or ignore him or her. Instead, you need to get in touch with your lender as quickly as possible. If you’re having trouble, just ask for more time. If they believe you are acting in good faith, many lenders will reduce the principle or offer an extension.
- Get credit counseling. There are many non-profit organizations that offer low-cost or free credit counseling to those wanting to take out a cash loan. On the other hand, make sure you stay away from any organization that would like you to pay a large upfront payment in exchange for negotiating your cash loan down. You can talk with the housing authority, bank, or employer. A decent way to start is to start your search for a reputable agency.
- Stop wage garnishment. If you have agreed to a voluntary wage assessment cause in your agreement, send a letter telling them you no longer want that agreement. That will keep the lender from taking your wages without having to get a court order.
Is A Cash Loan the Best Option for you?
More people are turning to cash loans for their life events or their small emergencies.
Homeowners who consider taking out a cash loan may also decide to tap into their home equity instead, either through a cash-out refinance, a second mortgage or through a line of credit. The benefit of a homeowner using a home equity loan is that the rates on these loans are much lower than cash loans.
The problem is that these loans are often secured by your home, so if you have trouble making your payments, it is possible that you can lose your house. That isn’t the case for cash loans, which are not secured.
As for home equity loans and second mortgages, these are decreasing, so consumers might not find many options available to them. Credit cards seem like the place to turn when you need funds on an emergency basis. They are simple because they are often already in your wallet and there isn’t any difficult application process. There’s no income verification necessary to get an advance on your credit card, assuming the card hasn’t been maximized, regardless of the individual’s financial situation.
The rate on a credit card is variable, so your payment might change. You can also add to the balance on the credit card, making it take longer to pay off.
The Benefits of Taking out a Cash Loan
Cash loans are good for when your car suddenly breaks down. The interest rates are generally very reasonable and, the faster you take out the loan, you can reduce the interest owed on the loan. Cash loans may be better than a payday loan, a perfect loan for people who want to have cash quickly and who don’t have any other source of income. They can be gotten through a private lender, a bank, or a credit union. They aren’t secured so you stand to lose a lot of money if you default on the loan. You can take out a couple of hundred dollars or a thousand dollars. You can make your payments over a short period of time in order to decrease the amount you owe to the lender.
Cash loans can be used for just about anything.
Cash loans are easy to get, even if you have a poor credit score. Such loans can be very useful to just about anyone who needs to have cash immediately.
But no matter what you do make sure you read the fine print, understand what exactly you are taking out and also be sure that you can afford the repayments!