Fast Cash Loan
Do you need quick financing in Canada? If you do, a fast cash loan may be of help. It is a short-term loan used to cover unexpected expenses before the next payday. So, the borrower must repay the next payday.
What Is a Fast Cash Loan and How Does It Work?
A fast cash loan is a short-term loan usually ranging from $100 -$1000.
You apply online for fast cash loans and approval in less than 1 hour. However, this means they come with very high interest rates. So, review thoroughly the terms and conditions of any fast cash loan before you apply.
Who Can and Should Use a Fast Cash Loan?
If you are running late on your bills or have unexpected emergencies like your car breaks down, a fast cash loan would be ideal. Fast cash loans are best in such situations because the need is immediate. However, if you have a non-immediate need, for example, getting a new car, a fast cash loan may not be the best option.
Regarding whom can get a fast cash loan, anyone above 18 years in Canada is eligible. You will need a government ID, proof of income, and an active bank account.
How to Get a Cash Loan in Canada in 2021?
Step 1: Apply
Most fast cash loans are online. All you need is access to a computer and internet connection to apply. If you cannot fill an online application, you can go in-store or do it over the telephone.
Step 2: Decision
The lender will review your application and see if you qualify. Online applications are processed faster, and you can get your approval within minutes and at most within 24 hours. For in-store applications, they take longer to be approved.
Step 3: Documentation
The lender will document the loan, amount, interest rates, terms, and conditions and give the borrower a copy to sign and agree.
Step 4: Cash In
Once everything is signed and above board, the lender will put the cash in the applicant’s checking account.
Factors to Consider about Cash Loans
Fast cash loans have acute interest rates compared to short-term loans and credit cards. Therefore, shop around and weigh your options before taking out a fast cash loan.
Most borrowers live in a cycle of debt. On payday, they are paying off their loans and are left with little money to live on. In most cases, borrowers ask for extensions on these loans. The lender then charges late payment penalties and fees. The borrower then borrows other loans to keep up with payments of the existing loans. So, the debt cycle keeps repeating itself.
Read through contracts thoroughly, and only deal with vetted lenders to safeguard yourself. Also, look out for misleading marketing to protect yourself from predatory lenders who like to extort uninformed borrowers.
Cash Loans Frequently Asked Questions
Can I Get an Instant Cash Loan with Bad Credit?
Yes, you can. Fast cash loans do not need credit checks. Therefore, even with bad credit, you are eligible. The downside is that you will pay high interest rates.
What Do I Need to Get a Cash Loan?
You will need a government ID, proof of income, and an active bank account.
How Much Money Can I Borrow with a Fast Cash Loan?
It all depends on your income and the lender. If you have a high income, a lender will tend to loan you more. Also, some lenders lend more compared to their competitors. So, do your research to find a lender who offers more.
What Cash Loans Are the Best Alternative to Payday Loans?
Although payday loans are convenient and fast, they are expensive. One of the best alternatives is a personal installment loan. They offer more money and longer terms for repayment.
Credit cards are also a suitable alternative if you have a good credit score. Since most credit cards come with a cash advance option, you can transfer the money to your chequing account. However, note this comes with its terms and conditions, unlike using your credit card to purchase goods.