Fast cash loans are small loans that are made available by lenders for those unexpected emergencies and expenses. They are a great option to help you get out of a tight spot. Maybe a bill came in the mail that you hadn’t budgeted for, and you simply don’t have the cash to pay by the due date. You could call them up and ask for an extension, or you could get yourself a small loan, get the bill paid and have ample time to pay back the money you borrowed.
Now while emergency cash loans are an excellent option, there are some things to consider before taking the plunge.
#1 – Research Emergency Cash Loans First
Like most things you do in life, it’s important to understand what’s involved before committing yourself to any form of finance. The big banks don’t generally offer small loans, so fast cash loans are provided by independent lenders like Sunshine Loans and similar companies.
All you’ve to do is go online and visit the websites of these lenders to learn more about what they’re offering, the terms of their loans, interest rates and so on. The information is usually quite transparent.
#2 – Is Your Emergency Really An Emergency?
In other words, do you need to pay for that unexpected bill, accident or other ‘emergency’ right now? Can it be kept aside for a while until you can get the money together without getting into debt?
If something can wait a month, you might be able to find the money through other means instead of getting a loan. This way you’ll save on interest and won’t have debt – even if it’s just a small one – hanging over your head.
If it can’t wait, then naturally do what you have to do to resolve your problem, but if it can wait, maybe seek out another means of paying for it.
#3 – Can You Afford To Repay An Emergency Cash Loan?
This question will apply to any sort of credit or loan you might consider taking out. Generally speaking, emergency cash loans can range from a few hundred dollars up to a few thousand dollars. They’re not big loans like a house loan, car loan or even most personal loans. However, if you do get one, you still have to have the financial means to be able to repay it in the allotted time frame.
As an example, let’s say you borrow $2000 to get yourself out of a bind. Now let’s assume that the total amount to be repaid, including interest and establishments fees, is $2600 and it has to be repaid in 8 weeks. That’s a commitment of $1300 per month to repay or $325 per week.
The above equation is just a sample. You would need to check the actual rates of the lender for accurate figures. The point is, you need to be fully aware of what you’re signing up for first.
#4 – The Process Of Getting Finance Is Relatively Simple
One of the real positives about fast cash loans is the process of applying and getting approved is quite easy and can be done in minutes. Often you’ll even find you have the money in your account on the very same day.
There’s minimal paperwork at all, and you never even have to leave your home throughout the entire application process. Everything can be done remotely.
#5 – How Healthy Is Your Credit Rating?
With small emergency loans of this nature, your credit history really isn’t a big deal. Even if you have zero credit history, you can still avail of an emergency cash loan to get you out of trouble. That’s not to say getting one of these loans is guaranteed, but even with a sketchy credit history, it’s still possible to obtain this type of finance.
#6 – Interest Rates Are Lower Than the Banks
While you can certainly borrow larger amounts from a bank if you fit their lending criteria, the big banks also charge higher interest rates for personal loans and credit cards. Emergency cash loans are often really low, hovering around the 4%-5% mark, so a lot less than a personal loan.
These loans are really handy when you’re in need. Just think about it all first though before committing.