Research has proved that Americans are terrible at saving money. In fact the average person lives from one paycheck to the next. This makes it difficult to deal with unexpected costs. Thankfully lenders have thought up a solution to this problem – cash loans.
What is a Cash Loan?
A cash loan is a small loan that is used for unexpected expenses. It is also known as a “payday loan” and a “cash advance”. Listed below are some of the characteristics of these loans.
1. A Simple Application Process
Payday lenders allow potential customers to apply for loans on their website. All they need to do is provide personal details such as their name age and income. Once applicants have done this they can click the submit button. The loan will be approved or declined instantly.
2. Lenient Lending Criteria
Unlike other types of loans payday loans have a very lenient lending criteria. Anyone who is over the age of 18 working and is a legal US resident will be approved for a loan. The only applicants who will be declined are those that are unemployed and/or are bankrupt. Unemployed applicants are undesirable to lenders as they do not have an income coming in which they can use to pay off the loan. Payday lenders cannot work with people who are currently bankrupt due to legal issues.
3. A Fast Processing Time
Payday loans can be processed and paid out within a matter of hours. Once the application is approved the applicant will be asked to send through proof of identification and income. When the lender has access to these documents they will pay out the loan. In some cases this has happened in as little as an hour. Fast processing times is one of the features which make cash advances suitable for emergencies. Learn more in here.
4. Small Loan Amounts
Most payday lenders will not lend more than a couple of thousand dollars. The reason behind this is that these loans are designed to be paid back quickly. In fact the term “payday” is is used because lenders want borrowers to pay off their loan when they get their next pay check. In reality the vast majority of lenders give borrowers a month to pay back their loan. As paying off a large amount in one month is next to impossible lenders put restrictions on the amount they are willing to lend.
5. High Interest Rates and Fees
Traditional lenders are able to offer their clients low fees and interest rates. This is because they have an extensive application process which eliminates applicants who may not pay the loan back. Payday lenders cannot do this due to their relaxed lending criteria and short application process. Instead they take on high-risk clients and charge them high rates in order to minimize their risk.
Cash loans http://trustcashmobile.com fill a very important gap in the lending market. Workers who are struggling for cash until their next payday should consider applying for a payday loan.