Fast cash loans are in reality payday loans that are often referred to with various names such as cash advance loans, post-dated check loans, and check advance loans. Fast cash loans are quick to get but can be very expensive due to the high interest rate. In case of an emergency, fast cash loans offer a good option as they can be received quickly directly into the bank account. However, it is advisable to use fast cash personal loans for minimum purchases or else there is a danger of default in payment with the next paycheck. It will also spiral the borrowers into continuous accumulation of debt.
Fast cash loans offer a solution to urgent cash requirements with minimal amount of documentation. They also offer the convenience of a direct electronic deposit into the borrowers' account that makes it unnecessary for them to physically go to the lender to collect the cash or check. They also have the freedom to use this amount as they like, without providing an account of the expenditure to the lender. This is possible as the loans are for a short-term and are expected to be repaid in one to four weeks. Usually, the repayment date coincides with the next paycheck of the borrowers.
The price of the convenience is quite high as the rate of interest can be anywhere between fifteen to thirty dollars for every hundred dollars of the loan amount. There is also an option of loan extension available with the borrowers. However, this extension will also mean an additional charge along with the usual interest charges and service fees.
Fast cash loans do offer an advantage over credit cards in the way that borrowers have to compulsorily repay the loan with their next paycheck. In the case of credit cards, borrowers maybe tempted to skip a payment, which will result in very high application of interest. However, as the payment is made with the next paycheck, the income available for that month will go down considerably and may force the borrowers to again apply for a fast cash loan. This cycle may become difficult to avoid if caution is not applied while spending.
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