Cash loans, also known as payday loans, are short-term financial solutions that offer the borrower access to quick, almost instant money that can be used to solve emergency situations such as paying utility bills or paying for emergency car repairs or home appliance repairs. The sums that become available with these loans are relatively small, usually between $50 and $1,500 and the term of the loans varies between one week and three weeks, until the borrower’s next paycheck arrives, interest rates and fees being somewhere around $15-$20 for $100 borrowed.
How to Find Cash Loan Lenders?
Cash loans are provided by numerous institutions, both online and in brick and mortar loan centers. Actually, there are so many lenders that the choice is far from easy – here are a few factors that you can take into consideration if you want to make the selection easier:
- online loans or brick and mortar lenders – both types of loan services come with numerous advantages: with traditional lenders, you can have personal contact with your loan officer and the money will be available to you right on the spot, while online lenders offer the benefits of not having to wait in queue at the bank, but they will probably require you to submit more identification information;
- licenses – cash loan lenders are under very strict control by the government and they can work in a legitimate way only if they carry all the right licenses. To be able to obtain the loan that suits your requirements, verify the company you are planning to contact with the Better Business Bureau to check their licenses and credentials;
- interest rates and other fees – cash loans are easy to obtain, but they come for a certain price. To be able to calculate the overall sum you will be required to pay back, that is, to be able to determine whether the cash loan you are thinking about is really worth it, you must check the interest rates that come with the loan very carefully;
- other conditions – beside the amount you will be borrowing and the interest charged by the lender, there are numerous other conditions that you must evaluate such as the term of the loan. Cash loans usually become due between 15-90 days, so you must evaluate your options according to your financial situation and determine the plan that best suits your objectives.
- Payday loans may be the best solutions if you are faced with a financial emergency, but your long-term goal is probably to be debt-free, so always make sure you weigh the pros and cons of getting into debt before you make the final decision. Cash loans can be the best way to solve your temporary dire straits, but only if you are sure that you will be able to repay the borrowed sum by the end of the term – otherwise, you might risk spiraling into debt and getting yourself into a situation very difficult to come out from.