- What your options are for immediate loans.
- What are the requirements for taking immediate cash loans, even if you have bad credit.
- What to be aware of (costs, other tips) when you are taking out such loans.
What Are My Options for Immediate Cash Loans?
If you want a loan in the form of cash today and you need it immediately then your only real option other than borrowing the money from a family member or a friend is an immediate payday loan. Such loans can be applied for and have the fund received almost immediately (some lenders offer the money within the hour), and they can be taken out either online or at a payday loan/cash advance center locally. In comparison, a traditional bank loan will almost always take a few days to secure the financing, and as such is probably not going to be an option if you need the money now (as in today). The only exception to this would be if you held securities at the bank and had set up a line of credit or margin capability which you could borrow against. However, given that the latter option is generally not available to the average person, we will talk more about the payday loan options for people needing fast cash.
In addition, if you really need the money now (as in today, or in the next hour or two), then make sure you go to the correct lender. Some online lenders and retail lenders will take a business day to process the loan. If you need it now, make sure that is an option, as there are plenty of lenders who are willing to make up to $5000 loans in less than one hour. Look for advertisements that say things like ‘1 hour cash loans’, etc. and then read the fine print before you apply.
What Are The Requirement for Immediate Loans from a Payday Loan Lender?
The requirements for immediate financing will be slightly different according to which lender you go to. However, the differences are very slight. In almost all cases, you will be required to do the following if you want a payday loan:
- Have a valid checking account. Most banks/lenders will require that this checking account has been open and in good standing for at least six months.
- Be over the age of 18. Certain laws restrict immediate cash lenders from doing such business with minors.
- Have a paying job where you make more than a certain amount of money. This amount will vary depending on the lender–some lenders ask that you make at least 1000 dollars a month. If you don’t make this much, however, don’t let this stop you from trying to get the loan, as many lenders will have very different requirements on the amount of money you have to make to qualify for an immediate loan.
These are the three requirements that are always posted on lenders’ websites. However, in reality there are a few other ‘procedural requirements’ that you should be aware of. First of all, most lenders will not lend to you if you are currently going through a bankruptcy. They do not care if you have had bankruptcies in the past (even if it was 6 months ago), they do care if you are currently going through one. Some may wave this, but not generally. Second, they will not lend to you if you are currently defaulting on other immediate payday loans of any kind. The lending institution will not care if you have other immediate fast cash loans out currently, but do not like it when you are currently in default.
What are The Costs of Immediate Cash Loans?
Simply stated, any form of immediate cash, payday, or check advance cash loans will cost a lot. Fortunately, most lenders will disclose very clearly what the costs are for taking out loans with them. Here are some examples of the costs of a 500 loan, 1000 loan, or 1500 loan for 14 days (example taken from a few different online loan lenders, and are meant to be simply a representation of what you might find – be sure to ask and know what the fees/costs are before you take out this type of loan):
- 500 Loan: Fees – $17.50, Total Cost – $117.50
- 1000 Loan: Fees – $175.00, Total Cost – $1175.00
- 1500 Loan: Fees – $262.50, Total Cost – $1762.50
The APR (or Annual Percentage Rate on the cash loan) for all three examples above is 456.25%, and this is a pretty good representation of the average costs for such loans in the industry. If the loans were 31 day cash loans, then the fees would be:
- 500 Loan: Fees – $38.75, Total Cost – $138.75
- 1000 Loan: Fees – $387.50, Total Cost – $1387.50
- 1500 Loan: Fees – $581.25, Total Cost – $2081.50
The APR is the same for the 31 day cash loan, but you can see how much more the fees go up as you extend this loan out longer than 2 weeks.
Summary, Tips, Advice When it Comes To Taking Out Immediate Payday Financing:
The bottom line when it comes to these loans is to be careful. There is nothing inherently wrong with payday loan lenders (contrary to what the press/some legislative officials may have you believe). In fact one huge advantage of such loans is that they make capital loans available to people with bad credit. Frankly, such financing is the only way that immediate loans for bad credit borrowers get made. As such, they can serve a good purpose in our economy.
However, this does not mean that such loans are good for you. ONLY use payday loans if you need cash immediately to get you out of a bind. Don’t use them for purchasing TV’s or other non-essential items – otherwise you will pay a lot more for those items. In addition, do not use short term fast cash loans as long-term financing options. As you can see from the example above, the longer you have these loans extended, the much higher costs you will pay.
Use immediate cash loans wisely, following the advice you find here, however, and they can serve as a short-term bridge for your financing needs.
