Minneapolis, Minn. (Vocus) July 10, 2009
The current economic climate is worrisome. Many families are having a tough time making ends meet, and as such, more are turning to a quick payday loan for a quick fix. Like any financial decision, there have pros and cons. This is no different for payday loans. QuickLoan.org points out some of these items so borrowers are more informed before taking out a quick cash loan.
A quick cash loan makes it possible for people with no credit or bad credit to access emergency funds with out using traditional means. There are minimal requirements when applying, such as the applicant needs to be at least 18 years of age or older, a US citizen with a regular income, and has a valid bank account. When these minimal requirements are met, a person in need of emergency funds can get up to $1,500 or a percentage of their income immediately deposited into their bank account upon approval.
When a borrower turns to a quick cash loan option, it is usually because they need emergency funds and have no where else to turn. Either they do not have family in a position to help out or their credit or timeline does not allow for them to use traditional lines of credit, such as a credit card or a bank loan. In addition, the need for instant cash is typically to cover unexpected expenses in-between pay checks, for example, for car repairs or medical bills. Traditional financial institutions do not usually make small personal loans for such needs or in a timely manner.
In addition, with a quick online cash advance, borrowers are able to access funds immediately. They are able to apply online without necessarily having to fax in additional information. The quick online cash advance is then deposited directly into a bank account for instant use. Moreover, many websites offer 24-hour customer service that allows for applications to be processed and approved faster for the quick online cash advance.
Quick cash loan lenders make cash available to borrowers who may not have good credit with the only collateral being the borrower's next pay check. This means the lender is taking on a high risk loan. In addition, with the term of the loan being so short, traditional low interest rates cannot be applied. The high risk and the short term nature of the loan means extraordinarily high interest rates for the borrower to pay back in a set period of time. If a quick payday loan borrower does not pay the loan back in time, they can accrue additional fees and penalties - making their already difficult financial situation even more strained.
Since this has become a problem in some states, laws have been passed to protect quick online cash advance borrowers. Among other line items, these laws remove a lender's ability to sue and also requires them to set up reasonable repayment plans. Caps have also been set on some of the interest rates and fees.
Public Relations Specialist
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