Your roof needs a fix, your kid needs money for a school project, or you are feeling ill. These are unexpected situations that call for extra cash. If you have funds allotted for such situations, it may not be a problem. However, if you are one of the millions of people who are living paycheck to paycheck, this can be a problem most especially if these situations need to be addressed right away. The good news is that with online lenders, you can take out instant cash loans online for people with bad credit to solve your urgent financial needs.
What are Instant Cash Loans?
As the term suggests, instant cash loans are loans designed for urgent financial needs. In most cases, cash loans are granted within the day from application, or sometimes faster.
Banks and other traditional lending institutions offer cash loans. However, these lenders look at your credit score. If you have a bad credit rating, your chances of getting approved for cash loans with these lenders are low.
Fortunately, banks are not the only institutions that offer cash loans. You can obtain these loans through credit unions/ online lenders. The good thing about these lenders is that they usually don’t look at your credit history or rating. So , if the main problem why you cannot obtain cash loans from your bank is your bad credit, you will be delighted to know that you can count on online lenders in times of urgent financial needs.
What are the Requirements to Obtain Cash Loans Online?
You will be surprised to know that online lenders that offer instant cash loans have less stringent requirements. To qualify for a loan, as with any lending institution, you must show proof of your income. A pay slip or employment records may be required. Other requirements are your proof of address, citizenship or residency documents, and billing information. The good news is that instant cash loans are bad credit loans, meaning these loans are designed for people with bad credit rating. So, lenders that offer instant cash loans won’t ask for your credit score.
The repayment terms vary from lender to lender but in most cases, cash loans have a short repayment term. Also called payday loans, cash loans are usually paid back on the borrower’s next payday. However, some lenders offer longer repayment period, which ranges from 3-6 months or up to a year. The payment method also varies per lender. Some lenders may require you to issue post-dated checks or may ask for your authorization to deduct the payment from your bank account. Some lenders accept payments online, or cash.
When Should You Apply for Cash Loans?
As bad credit loans, cash loans are readily available. However, as it still needs to be paid back with interest, you should only use this service in times of need. But exactly when should you only use this type of loan? Here are some scenarios.
1. You cannot take out an emergency loan from your local bank.
2. You need extra cash right away because of an urgent financial problem that cannot wait (e.g. health issues, you need to fix your car to go to work).
3. You have nowhere else to go. You were not able to borrow money from friends or family.
Cash loans are a great source of funds for above situations. You may find cash loans really helpful in times of urgent financial needs, but you should also keep in mind that these loans charge higher interest rates. This is because lenders that offer cash loans require no guarantee from you aside from you.