In these times of economic downturns, constantly rising prices and increasing unemployment, there are number of occasions when an average person with a fixed salary income can get into the maze of hand to mouth survival. And during these times, in case any unexpected expenditure lands, it acts like salt on the financial wounds. In such a desperate situation, a person is left with no choice but to borrow money. There are various avenues to look forward in case of such a shortfall some of it can be:
- Approaching a Bank / Credit Union where the customer has his regular transaction account. The bank is aware of the banking habits, money flow cycles and existing obligations. The bank here is the best judge of the repayment capability of this customer.
- Loans from family or friends works out as a one of most convenient alternative for the people who need the money for a short term. There may not be a standard contractual agreement within the family or relationships, but the quantum of fee or charges depends on the mutual understanding of both the parties.
- A personal line of credit can be secured by the customer in case he is willing to provide any collateral or deposit security to the bank. This option is usually exercised by people who want to use the funds for business purpose.
Online Payday Loans Cash Now
One of the easiest and fastest forms of money in recent time is online payday loans. Such loans also known as payday loans; they are short duration loans which can be taken very easily through online or physical store application. They can be used for any objective and assist a customer in the times of financial crisis with an agreement for paying the entire money off by the next pay day.
The quick cash loan require a minimum documentation effort. Each lender has multiple lending criteria and evaluates the customer on parameters to check about the financial fitness of the customer. Some of the benchmarks are:
- Customer to be above the eighteen years of age and must be a legal resident and lawfully employed within the United States
- Customer must be earning a minimum salary of $1000 and must be of a fixed amount coming on a fixed date
- Customer should be employed for a minimum of 90 days as on the date of loan application with the same employer. A person jumping too many jobs in the recent time is usually avoided by the loan vendors
- Customer needs to have a bank account with regular banking transactions. The loan is usually disbursed in the same bank account and the vendor also takes the debit authority so as to directly recover the total outstanding as on the next pay date
The customer is required to furnish basic information in an application form through online channel or visiting a store. The lender analyze the application form against the above benchmarks as well as can approach the various credit rating agencies like Experian, Trans-union etc. The objective of checking credit history is to make sure that the customer has not been declared as a bankrupt or is not defaulting on any loan with any other institution. If a customer has a bad or no credit history, the lender can request for additional information and basis on that can decide to proceed or refuse the online cash loan.
The entire contract between the lender and borrower comes with multiple clauses about repayments, fee and interest rates charges and other penalties covering the entire contract. The borrower is obligated to pay off the entire loan sum along with the agreed charges on or before the next pay date. As the nature of this product goes, it serves as a short term liquidity enhancer with the underlying promise to clear all by the next salary date. Thus the lender has all the options to recover money directly from the bank account of the borrower, or can get a personal check issued from him. In case of any exigency wherein the customer is unable to repay this debt, there are various options being given by the lender so as to clear the debt without any major tussle.
Although quick cash loan comes with an advantage of minimum turnaround time and simplicity, the rate being charged on the amount tends to be on a higher side. A customer should explore all possible options and arrive on the one best suiting to the needs.