We have all encountered unexpected expenses one time or the other. And you can all be sure that there might be more in the future for each of us. Sometimes you can meet those needs on our own with our savings, previously purchased schemes, insurance etc. but what do you do when there is no such remedy easily available? What do you do if you need money that you don’t have, and fast, to meet a crisis situation? Well if you can’t wait it out till your next paycheck you can apply for a Quick Cash loan. You can visit unitedfinances.com for an online easy alternative for procuring this kind of financing. But before you do that, go through the following points which describe some very basic features of this kind of credit.
What is it?
A quick cash loan is a type of specialized loan, lent for a short period of time. The amount lent is not the same for every bank, but the maximum amount does not normally exceed $1500. This particular type of financing can be obtained even without any collateral or security. The interest rate might be higher here than on some other traditional types of loans. This is because the credit is extended without an assurance for the lender in the form of collateral; also the high interest rates discourage irresponsible and truant borrowers. When applying for this type of credit, it helps if your credit rating is fairly high or at least not too low.
There are two types of such financing, in terms of collateral that you can look for:
• Secured – This means you will have to provide collateral to the lender before you receive the cash. This will help in lowering the rate of interest you’re charged with while making you repayment period longer. Thus, not only do you pay less interest, with the repayment being longer you also pay a smaller installment. Nonetheless, if you’re unable to hold up your end of the contract and fail to make the payment then your collateral will forfeited completely.
• Unsecured – Here you do not have to provide a security to your lender, thereby you don’t risk the loss of a property if you fail to repay back the amount borrowed. Therefore, here it is more risk of the lender than the borrower. However, this leads the lender to hike up the interest charged and keeping the time frame of repayment lower than that offered in the former case. Therefore, you pay more money in terms of interest and also the size of your installments is also quite steep.
What if you’ve bad credit rating?
Since a majority of the people who require such credits have poor credit records, banks and other financial institutions have come up with schemes to cater them. But just because such financing exist and can be procured it doesn’t mean that the process is absolutely without any catch. It is always neither easy nor too cheap while seeking a quick cash loan, with bad credit rating. The interest charged will not only be high, you might also have to provide collateral, and the maximum amount you can borrow will also have a lower cap than those with better credit points. But don’t lose heart yet. This kind of credit lending provides you with an excellent opportunity of building up your credit record for the better. Since the entire lending and repaying transaction takes place within a very short time if you can make all the payments timely, then this adds to your credit points. But if you fail to do so, it affects the same adversely, as in a very limited time you will have shown how irresponsible and unreliable you’re financially.
So before, you take out such a loan make sure you can afford it and make all the payments within the stipulated time frame.
Author’s Bio – Sam Payn is a renowned loan industry blogger. Apart from UnitedFinances, he also writes for other loan communities.