Instant Cash Loans- The Pros and Cons of Online Short Term and Payday Loans

An instant cash loan is a type of loan that lends you immediate financial assistance – quick! Sounds very interesting and tempting right? Although quite useful in emergency situations, this type of loan must be acquired with caution.

Simple and Easy Requirements and Qualifications For Cash Loans Online

The requirements of getting an instant cash loan are simple and easy – definitely one of the reasons this type of loan is attractive to a lot of people. First and foremost, it requires no credit check so you don’t have to prove to them how creditworthy you are.

You only need to be at least 18 years of age, an American citizen, have a checking account, and a salary of at least $1000. You should not have recently filed for bankruptcy.

Fast

Once you meet all of the requirements qualifications, you can expect your application to be approved right away, even in less than 24 hours, which is why sometimes it is referred to as fast cash loans. The simple requirements and immediate approval is something that doesn’t happen with traditional loans.

The application of this loan is made even faster because lots of companies that offer this type of loan are on the internet, so you don’t even have to walk, commute, or drive to get instant financial assistance. You just need to fill out an online application form that you send to them; and sometimes no documentation is required to further the application.

Short -Term

But – there’s a huge but – nothing that simple comes with zero price. An instant cash loan is a short-term type of loan – meaning that you have to be able to pay it off in less than a year or shorter depending on the type of cash loan. Examples of short-term loan are fast pay day loans, thus called because it requires that you be able to pay it back on your next pay day.  An advantage for this type of loan is that there is no collateral. Because it is a payday loan, it can be said that your only collateral is your job; but your home, your car and other possessions and properties will not be jeopardized.

Instant Cash Loans Can Have High Interest Rates

Indeed short-term loans can come in handy, but the interest is extremely high. The annual percentage rate of these loans can amount to 200%. The interest rate will keep growing and growing if you do not pay on time. So it is important that you make certain it is an absolute emergency why you want a loan, and that you intend to pay it back the soonest possible time to avoid getting in more financial problems. Additionally, most companies that offer these types of loans will ask you for an upfront payment, some amounting to 25% of the amount you borrowed.

Easily abused

Another disadvantage for this type of loan is the fact that it is very easy to obtain. And because it is very easy to obtain, then it can be easily abused – by you. If you keep borrowing and borrowing, then you’ll find it more difficult to be more stable financially. So again, it is so much wiser to get an instant cash loan only in the event of a real emergency.