Fast Cash Loans: Are They A Good Or Bad Idea?

Money is tight these days and many people are living from paycheck to paycheck. This leaves them little savings should their car need repairs, a family member get sick or any other type of emergency. Should the unthinkable happen and you need cash quickly to tide you over, where would you turn for help? Many people are turning to fast cash loans to provide a temporary solution to an immediate problem.

What Is A Fast Cash Loan

A fast cash loan is what is known as a payday loan. It is a short term loan where you can borrow money quickly and easily and even with poor credit until your next payday. You can either apply for these loans in person at one of the local fast cash businesses or apply online without ever leaving your home. In many cases, you can have the money within minutes of applying. All you really need is a bank account.

In exchange for the loan you write the company a post dated check for the date you will pay back the loan. In most cases, the longest period is two weeks or until your next payday. Interest on these loans is usually about 15% meaning that if you borrow $100.00 you write the post dated check for $115.00. However, some of these loans in some states have been known to charge much higher interest rates so make sure you find out what the interest rates are before applying for one of these loans. If you can't pay the loan when it comes due you may be able to roll the loan over to the next payday for another $15.00 interest rate. Which means that you will want to pay one of these loans off as fast as possible to keep the interest from adding up.

Benefits

There are some benefits to fast cash loans and these benefits include:

    You can borrow a small amount of money, Usually up to $1500.00 fast when you simply can't wait days to find out if you qualify for a bank loan.
    You can the money you need for a real emergency even if you have bad credit.
    You don't have to have collateral for a fast cash loans, nor do you have to fill out pages of paper work, just a simple application.
    Disadvantages
    There are several disadvantages of fast cash loans you have to consider. These include:
    The high interest rate. 15% is an extremely high interest rate and if you have to roll over these loans this interest rate keeps adding up making it more and more difficult to pay off these loans.
    If you are already living week to week then paying off any loan will be difficult.
    Fast cash loans are illegal in some states so, you may not be able to get one of these loans depending on where you live, unless you apply online for a loan from another state.

While a fast cash loan can help you should a real emergency arise, you should use such loans sparingly and only if you really need one. They can be a real help to those who need money fast every occasionally but, can also become a burden when the interest piles up from taking out too many of these loans.