Cash Loans Today – Easy Way to Get Money
Cash loans today are short termed loans which are usually quickly approved and the funds are either available in cash or sent to the client’s bank account via an electronic transfer process. Usually they are unsecured in nature where no collateral is required. They resemble payday loans in many characteristics including high interest rates and fees. Clients can procure these loans to meet a variety of needs. They are usually short term in nature such as buying groceries prior to being paid, dealing with emergency repairs to the car or to appliances in the home etc, and they are an easy way to get money. Like all loans, lenders need to verify the risk profile of the borrower and the borrower needs to confirm and be aware of all of the costs associated with these types of loans.
The lenders are really not that concerned about what the funds will be used for. Instead they know they are providing an easy way to get money to the clients and just really want to make sure they will be repaid. For clients that are perceived to be high risk, the lenders may refuse to loan them money or they may charge them a higher interest rate. High rates are geared to high profits but also to manage losses as well since some clients may not be able to repay the funds that have been borrowed and will have to deal with the consequences.
The fees and the interest rates can be quite high for cash loans unless you go through a broker or your local bank, however they can be more difficult to obtain due to the increased credit checks and loan approval requirements. If you need to borrow money at any time, consumers should always make sure that their credit ratings are in good shape and there are no negative reports on the credit report against you.
Electronic Transfer of Funds
Cash loan lenders would really prefer to electronically send the money to the client’s bank account and not have to deal in actual cash. Dealing in actual cash creates lots of issues, such as storing cash on site, and then tracking the cash as well that is transferred into client’s hands. Instead when they transfer funds from their bank account to the client’s bank account they have an accurate record of what was transferred, when it was transferred and where it was transferred to. If they ever need to have proof of the loan, all of these records are easily available from the online transactions. This system of transfer is also good for the client as well since the same records are available to them in their own bank should there ever be a dispute about how much money was transferred into the account or paid out to the lender.
Clients must make sure that the money they owe for repayment is in their account when it comes time to repay their loans. Charges for insufficient funds can be quite high and you are charged by the bank as well as the lender in situations like this. An insufficient fund charge occurs when you write a check or authorize a withdrawal and there is not enough money in the account to cover the check or withdrawal.
Many people do not have actual bank accounts these days because the banks are charging far too much for their bank accounts in terms of monthly fees. When they get paid by check, they must cash their checks at places that will accept them. A cash loan lender will usually cash a check for a fee which is based on the amount of the check that is being cashed. This is an excellent way to cash your pay check and to also repay your loan at the same time along with any fees that might be due.
Emergency Cash Loans
When clients have an emergency and they do not have the ready cash to help them deal with that emergency, they can feel very frustrated and helpless at times. What would you do if your car needed $500 in repairs and you did not have the ready cash to pay for it? You use your car every day to get to work and if you cannot get to work then you are not going to get paid. This is just one example when a cash loan can become a life saver to help meet an emergency that cannot be planned for. There are alternatives for some people, such as taking the bus and hitching a ride with a neighbor or friend, but how long can you do that and how much of an imposition is it on them. Some people find it very difficult to even ask for help and would rather turn to a cash loan lender to find help.
There are many emergencies just like this one that consumers encounter every day. Some can wait until you get paid, but many cannot and that is where an emergency cash loan can really make a difference. Even if you have savings set aside for this type of situation there are also times when your savings are just not enough and a cash loan can bridge the gap between the expenses that you have and your savings.
Living Pay Check to Pay Check
We recently read that 76% of Americans are living from pay check to pay check. This means that they are not saving any money for emergencies let alone retirement. In situations where you are just making it to the next pay check, any kind of situation that generates a need for cash is potentially catastrophic from a financial perspective. If you must repair the car, fix the fridge, repair the roof or deal with medical bills and you are living pay check to pay check there will just not be enough cash around to deal with this kind of issue.
A cash advance loan of some kind can fill the gap, but this also adds more pressure to living from pay check to pay check. If you cannot afford the item that you are buying or have something that must be repaired it either means you delay payment on some other item or you apply for a loan of some kind to get you through the financial challenge. For most people, they just give up something or delay something to help them deal with the issue.
It can be very difficult to save money under these circumstances, however even 10% saved off your pay check can sometimes make the difference between having to apply for a cash loan and dealing with the emergency that you have.