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5 Reasons Quick Loans Continue to Grow in Popularity

Quick loans, sometimes called short-term loans, have gotten a bad rap. Despite the bad press, these loans continue to offer the only solution to people who are experiencing monetary hardship.

When used correctly, their loans can be a useful way to get through a tight spot. Here are five reasons why, despite naysayers, these loans continue to rise in popularity:

1.Easy Qualification

Debt can be a vicious circle. Even if your station in life rises, if you are in debt, you’ll never get a loan to get you out of it. Just try refinancing your mortgage, purchasing a car or getting a credit card with a low interest rate if you’re in debt.

Quick loans, on the other hand, are incredibly easy to qualify for. Additionally, if you repay your loan according to its terms, you’ll qualify for more funds the second and third time. The ease of qualification makes a quick loan attractive to many consumers.

2.Retrieval of Funds

When you apply for a traditional loan, it can take weeks to receive your money. By the time you fill out the application, provide the necessary information and wait for the bank to check your references, your need for emergency cash could have come and gone.

Quick loans are often deposited directly into your bank account within 24 hours of application and acceptance. This means that if you have an emergency situation that requires cash, you can take care of it within a day.

3.Ease of Repayment

Quick loans are paid within several weeks, rather than over a period of several months or years. The ease of repayment is part of what makes these loans so popular. Having a single payment, or just two or three payments, can help people stay organised and better able to stick to their budgets.

Quick loan repayment also doesn’t require that you have a crystal ball that allows you to see into your financial future. Taking out a loan that requires an extended period of payback can be risky if your financial situation isn’t stable.

4.Terms

If you’ve ever taken a loan, purchased a home or bought a car, you know that repayment terms, fees, and penalties can be hidden in the fine print. Conventional loans can be confusing for many borrowers.

Quick loans have terms that are clearly spelled out, often on the first page of the application. You will be aware of the interest rate, fees and total amount that you will be paying back before you ever accept the money.

5.Customer Service

The quick loan industry is highly competitive. Like any field, when there is competition, businesses have to strive to attract and keep customers. Because of this, quick loan companies often offer customer service that is superior to that offered by financial institutions.

Unlike bankers’ hours, quick loan companies have employees working around the clock to field your questions and alleviate your concerns.

When used correctly, quick loans can offer the perfect solution to your financial needs. Regardless of the bad reputation that these loans have received, problems arise not from the loans themselves, but from the consumers who abuse them.

Don’t let the negativity surrounding these loans prevent you from utilizing them to help you through a rough patch.

8 Dos and Donts of Quick-Cash Loans

If you have an unfavorable credit rating, it may be difficult to obtain cash advances from traditional lenders. Instead, people choose to go to with Quick cash lenders. These are organizations that give people funds for emergencies.

Some of the loans these lenders offer are payday loans, title loans, and 100-day loans. They will not check your credit rating before approving an advance. Quick-cash loans can be a Godsend if you handle them correctly. However, they may be a disaster if you are not careful. The following are the Dos and Donts of quick-cash loans.

The Dos

1. Do Use Only for Emergencies

Quick cash loans are designed for short periods. They are not a way for you to purchase frivolous items. You should only apply for a quick cash loan if you can return the funds within the specified period.

2. Do Make Early Repayment

If it is possible for you to return payment on a quick cash loan before the due date, you should definitely do it. The lender may offer a discount for early payment. Some lenders will attempt to get you to stretch the payment out because they make more money. Say no to extensions.

3. Do Have the Money Available

Quick cash loans are serious. The title loan company will put a line on your vehicle. If you do not return the funds, they will have the right to repossess your car. Payday loan companies will make withdrawals from your bank account. Take these loans very seriously and draft a budget to see if you have funds available before signing a contract.

4. Do Compare Companies

One negative aspect of quick cash loans is the high APRs. Payday loan APRs can range from 300% to 500%. They are very costly so you must compare to find the company with the lowest APR.

The Don’ts

1. Do Not Over-Extend

Repeated extensions do nothing for you as far as getting the balance paid. Common mistakes people make with title loans are extending every month and not paying any of the bills down. This is how a title loan can severely hurt you financially.

Before extending the loan, make sure you read the fine print on how much of your payment is actually going to the proceeds. You will probably be surprised at how little it is.

2. Do Not Make Small Payments

Even if you cannot pay back the entire loan at on time, you must make hefty payments. Try to pay down at least 50% of the balance, plus extra to cover your finance charges. That way you will be able to see the light at the end of the tunnel.

3. Do Not Become Addicted

Because quick cash loans are so simple to get, it is easy for a person to be caught up in the cycle of re-borrowing. Once you pay back a quick cash advance, try your best not to use this method of borrowing funds again.

If you suffer another hardship, ask your family and friends to help. Take on extra responsibilities at work. Try to come up with creative solutions to make extra cash.

4. Do Not Leave Referrals in the Dark

Some quick cash companies offer discounts on the loans when you refer people to use their services. This is acceptable, but make sure you explain give them good advice on how to avoid getting into trouble. Educate your referrals just as you are now being educated.

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