What Is a Quick Cash Loan ?

QUICK CASH LOANS - Also called: Fast cash loans, payday loans, fast cash payday loans or emergency payday loans, fill a need for people who need money FAST - usually overnight - and have no other means of acquiring cash.

You've read all the doom and gloom about these loans? Don't make up your mind so fast...these loans actually have a valid place in some people's financial destiny. Read, learn and think before running out to aquire cash via a fast cash loan.

These loans are available via online loan providers or brick and mortar stores, where you may actually complete the process in person.

These loans should be fully understood before you commit to borrowing, however they can be a viable solution for a responsible consumer especially when the quick cash loan is the least cost alternative.

When do I use a quick cash loan? - not sure when to use a quick cash loan?

How quick cash loans work - Think of it as advance against your salary - the cost being a steep interest rate, payable upon receiving your next paycheck.

How much can I expect to pay for a quick cash loan Think 'cost per $100 borrowed', not APR (annual percentage rate).

Quick Cash Loans - Applying Online

ONLINE TRANSACTION - consists of filling out a short application where you submit personal information - employment, bank checking or savings account, identity verification. Some loan providers require that you fax your most recent pay stub, void check, and bank statement.

Once approved, a loan amount between $200-$1500 may be deposited directly into your account - to repay the loan you agree to have your account debited in 2 weeks (or when you receive your next pay check) for the amount borrowed PLUS the fee.

Quick Cash Loans - Applying in Person

BRICK & MORTAR STORE - process is similar. They'll verify - bank statment, employment, and phone bill. Once approved you will write a post-dated check (to be deposited in 2 weeks or when you get paid next) for the amount you want to borrow plus the fee. Typically if you want to borrow $200, you'll write a postdated check for $230. This is your repayment for the borrowed funds.

The requirement for you to get a QUICK CASH LOAN is not too difficult; usually all you need is proof of employment and a checking or savings account with a direct deposit feature. Prove these and you'll get a fast cash payday loan.

Reasons to use a Quick Cash Loan

Typically quick cash loans are available to people that are working but are short on cash just can't wait until payday. As you probably guessed, this type of loan is best used to sidestep an URGENT personal financial situation.

If you are certain you can pay back the quick cash loan in the short time frame (usually 2 weeks) they can solve yor financial problem.

Late Fees or NSF fees - The typical fee on $100 cash advance is $15 to $20, overdraft notice at your bank is usually at least $35 per event. Quick cash loans may be the cheaper alternative.

Avoid Destroying Credit - Is your Mortgage payment on the brink of being late? The $30-$40 you spend to borrow $200 so your mortgage payment is on time outweighs the risk of your credit score dropping over 100 points by being late.

Auto Repair - For example, you may have an unexpected auto repair bill that creates a need for several hundred dollars that just isn't available.

Child support -You may be a parent needing to make a child support payment but is short on funds.

Medical - It could be that you run into a unexpected medical situation requiring expensive prescriptions for a loved one.

Seasonal - When cash is tight, many use these payday type loans to buy gifts around the Holidays and Christmas. The legitimate list of reasons you may need a quick cash loan is endless.

You're Not Alone

If you are considering a fast cash loan, you are NOT ALONE.

Data from the Washington Payday Lending Industry show a rapid rise in fast cash loans between 2000 and 2006. In 2006 alone :

• Number of Fast Cash Loans: 3,297,012
• Average Fast Cash Loan Amount :$ 375.64
• Number of Fast Cash Loans has Increased about 113% between 2000-2006
• Fast Cash Loan is a $1.8 Billion dollar business - Annually
• Recent statistics show most people getting these types of loans have incomes between $25,000 to $50,000 annually.
• Also most quick cash loan applicants are under 45 years of age. Typically 66% of those applying and getting quick payday type loans are doing to cover unexpected expenses.

Quick cash loans are becoming the overwhelming popular choice for solving short term cash flow problems - despite all he bad press that they generate.

Quick Cash Loan - Basic Guidelines

So, how does one go about getting these emergency loans? What is required and where do you go? Please continue reading below.

Qualifying for a quick cash loan is not too difficult for most working folks. For MOST companies in the US the guidelines for receiving an advance payday loan goes something like this:

• The borrower must be 18 and a USA citizen.
• Must have a steady source of income of at least $1000 per month
• Must have a regular bank account - savings or checking - with Direct Deposit.
• Must NOT owe on any past quick cash loans
• Must have valid proof of ID (Photo ID, Drivers license etc..)
• A fast cash payday loan cannot be higher than 25% of your gross monthly income or $1000, whichever is less. So if you gross $3000 monthly, the most you could borrow from a payday lender is $750.

our recommended fast cash companies

Quick Cash Loan Process

Most who apply for a fast cash pay day loan go through this type of process:

• Bring a recent paycheck stub - You'll need to prove you have regular income so you'll need a recent paycheck stub; required income usually between $800- $1,000 monthly. If you are applying online you may have to fax income verification.
• Bring a bank statment and a cancelled check - Be able to verify your bank account; these two documents will prove the bank account is yours. YOU MUST HAVE DIRECT DEPOSIT. If you are applying online you may have to fax bank statements for verification.
• Show up with ID - You'll also need valid ID (drivers license, military ID or state issued ID).
• Bad credit IS NOT an issue -Companies typically DON'T do a credit history check. You can get a fast cash payday loan if your credit is BAD or have even filed bankruptcy.
If you are visiting a brick and mortar store, you write a postdated check to the payday loan company for the amount needed, plus they're fee, (this varies, the norm being about $ 20 per $100 ). The company then gives the borrower the loan and keeps the fee when they cash the personal check the borrower wrote.
• You receive your money anywhere from immediate to 3-5 days - For example, the typical online fast cash payday loan is approved within 4 hours and the money is deposited directly into your account within 24 hours.

What is the cost of a Quick Cash Loan?

As you can probably guess, the cost of a 'fast cash loan' is high.

Expect to pay-back the principal PLUS fees anywhere from $20 to $30 per $100 borrowed.

List legitimate payday loan providers - If you absolutely need to take out a Fast Cash Loan, try to pay no more than $20 for every $100 borrowed. You can find companies offering good rates here: list legitimate payday loan providers

The cost of these loans is usually expressed as "Fees" rather than interest rates in the traditional APR context. The reason is the costs of quick cash loans are shockingly high when expressed as APR:

This list shows a comparison of the annual percentage rates of payday loans when compared with other alternatives when you face a cash crunch. These are expressed as APRs for 14-day periods.

• $100 payday advance with $20 fee = 521% APR
• $100 payday advance with $30 fee= 800% APR
• $100 payday advance with $50 fee = 1,304% APR
• $100 payday advance with $60 fee = 1,564% APR

As you can easily see, trying to express the cost of these loans in pure interest rate terms is not practical, so just think in terms of what you will owe per $100 borrowed.

The organization called "The Center for Responsible Lending", is pushing for a 36% cap on payday loans due the vicious nature of these types of loans. Used carelessly these loans create an endless cycle of borrowing since the borowwer cannot repay the original loan thus repeating he process racking up more fees.

Make sure you carefully consider your financial situation before taking out a fast cash loan, in other words, make sure you can pay it back using your NEXT paycheck. Make sure it's truly a LAST RESORT or you could end up in BIG MONEY TROUBLE.

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