Fast cash loans are basically lent for a short term catering to varied needs of borrowers with different backgrounds. They are applied for when borrowers are in need of fast cash. As against traditional loans, short term financing carries very high rate of interest but is not backed by stringent rules. Certain states, however, have clearly put a cap on the amount of money that can be borrowed and on the rate of interest charged in case of payday loans. As a potential borrower it would only be helpful if you are at least aware of the regulations in your state so as to step up your bargaining efforts with your lender.
As already mentioned above, you don’t really need to fulfill a strict eligibility criteria in order to qualify for short term financing. The lender won’t even check your credit scores. But you have to prove that you have the following attributes that are verifiable:
- A job
- A regular source of earning ( even if you are unemployed)
- US Citizenship
- Personal Bank Account
- At least 18 years of age
Some of the details that would be checked include:
- Your complete name
- A voided check
- latest bank statement
- latest telephone bill
- Copy of ID, that is issued by the state
- Recent pay stub
- A copy of social security card
- Valid and most recent residential address
- Present employment status
Once you are able to furnish relevant information you should be good to go. But as the rates of interests associated with short term financing are high you should exercise proper sagacity while availing these loans. Stay updated about the recent regulations regarding payday loans. Make sure that you are judging your needs properly before securing these no faxing loans. Secure their help only when you think that you have exhausted all other monetary sources to fulfill your need at hand. If you think that the financial need can be fulfilled after your pay day then it would be prudent to wait for it instead of applying for a loan. Borrow only if its a financial urgency. You might be required to meet a sudden hospital bill or else to pay an examination fee. These are just some of the instances where you would be required to borrow a short term loan. It wouldn’t be wise to secure them for funding unnecessary expenses for holiday trips or birthday parties. The rate of interest incurred is very high and with each default the rates will accumulate fast triggering expenses out of control.
Another huge drawback of applying for short term financing can be traced in chances of getting addicted to them. Just because they can be borrowed without applicants having to furnish their credit report, it has been seen that many of the borrowers are getting addicted to them. They don’t really judge their needs properly before securing the aid of short term financing. Lenders, on the other hand, are also lending indiscriminately owing to their greed of raking in greater interests.
Author Bio: Alan Starc is a finance blogger and web content editor who has host of financial write-ups on insurance, loans and investments to his credit.