Tuesday, January 21, 2014
Cash loan is another term used for pay day loans. These loans are short term and thus have a high interest rate. These loans are offered for those who seem to find themselves out of cash in the last days of the month due to unforeseen expenditures that they had to incur. The cash loan or the pay day loan allows the borrower to avail cash against the applied loan within twenty four hours of the approval of the loan which spares them from long waits. Also, when an applicant applies for a cash loan, the notification of approval is sent to them within a few hours of their application. This allows these applicants to make timely alternative arrangements.
Cash loans are the perfect financial answer that allows borrowers to manage their money needs in a confidential and independent manner. Furthermore, all the money transactions through the pay day loans are managed online, which offers security and ease to the borrowers. However, people who use cash loans or pay day loans must keep in mind that these loans can end up in a debt trap and therefore, they should only borrow the amount that can be paid on time and without defaulting. In some of cases the late payment penalty fee can amount to three times the amount of the principal.
What are the selection criteria for the candidates of cash advance loans?
The selection criteria of pay day loans lending institutes may differ from one institution to another. This is the reason the applicants should make sure to read through the terms and conditions and the selection criterion information provided by these institutes. The main reason for this difference is that different cash loans offering institutes might be targeting a different market segment. However, some of the common cash loans selection criteria include:
Applicants/borrowers must be legal citizens
Applicants/borrowers must be equal to or more than eighteen years of age
Applicants/borrowers must be employed and/or have a regular source of income
Applicants/borrowers must have a bank account
Applicants/borrowers must not have a history of being ignorant to the repayment of such loans
Applicants/borrowers must have solid documents
It is important that applicants are completely honest when they are filling out the application forms for the cash loans. Every pay day loans offering company verifies the information provided by their applicants through their network of agencies. In cases where the provided information cannot be verified or is false, the applicants might have to face serious consequences.
Can applicants with weak credit history apply?
Even those individuals who who cannot borrow traditional loans because of their weak credit history can apply for pay day or cash loans without any hesitation. These individuals are offered bad credit loans against an additional fee.
Benefits of cash advance loans
Pay day loans applicants who are vigilant when borrowing money from the pay day institutes can benefit in more than one way from these loans.
1. No obligation of visiting the premises of the lending institute
Since the application forms for prepayments are uploaded on the websites of all reputable pay day loan companies, applicants do not have to visit the offices of these companies and can submit their requests online. Also once notified and approved, the money is transferred directly into the borrower's account so they can directly withdraw the funds rather than having to collect the money from the company.
2. No collateral required
The applicants of pay day loans are not required to provide collateral to these companies as their employment proof is the only collateral the cash loans companies seek.