So, what is fast cash loan? Fast cash loan is a loan where you are able to get the cash as fast as possible within 24 hours after loaning and it is also commonly known as emergency cash loan or cash advance. You can get fast cash loan by finding one online or finding a cash advance merchant. To get the loan, you just have to simply fill out a loan application form which covers all your personal information and you also have to shows your employment status and income to make sure your salary is able to cover the amount you had borrowed.
Every loan has its advantage and disadvantage, so what are the pros and cons on having fast cash loan? Below are some of the points for fast cash loan.
No Credit Score Check
When you take a loan from the bank, the bank had to check your credit score before they approve the loan. They will check if you had any bad credit like if you had missed any of the credit card bills, any existing loans not paid back yet and etc.
However, for fast cash loan, the merchants would not check your credit score, therefore even if you had a bad credit score, you would still be able to borrow the money you need from them. You would not need to worry about not being able to get a loan.
Fast Application Time
As there are no credit check, this means that the time needed for approving of the loan is faster as compared to bank loans and sending in an application form for the loan is also quite fast. You would not need to spend over 30 minutes to fill in and once your loan is approved, you would be able to get the full loan amount within 24 hours. Overall, the application of loan and money gotten is fast and quick.
No Assets Needed as Security
You do not need to secure your assets like your house or car for fast cash loan, but some merchants might require to do so, depending on the merchants you go to. But most of the time, you are able to get a fast cash loan without collateral. This will help those that does not have a car or house be able to take a loan.
High Interest Rate
The interest rate for fast cash loan can be quite high compared to other loan. To make up on being able to get the cash fast and the risk of not having any collateral, the interest rate for fast cash loan will be much higher than the other loans available. The payback duration for the loan is also quite short and you had to pay back the full amount by the due date. As the duration of the loan is short, people do not take into account the amount of interest they had to pay just to borrow the cash.
Worsen the Cash Problem You Already Have
Although fast cash loan can help you to solve your cash problem in the short term, however in the long run, the cost from the interest and potential fees for the loan with the existing cash problem you already have will make it worse for you.
Improper Use of the Loan
People might misuse fast cash loans when they have access to it, they might get a fast cash loan for the things they want to buy rather than use the loan for emergency. In the long run, this will cause the borrower to stack up on debts from all the loans they had taken to buy the things they want and with all the interest from the loan, they will fall into a huge debt which they would not be able to pay back with their salary.