How to get instant online cash loans
Sometimes there may be bills that can only be paid in cash. If you do not have enough savings in your bank account or other sources of cash, then you may not be able to pay that bill. This means that the bill goes into collections or becomes delinquent, which in turn can incur increased interest rates and penalty charges as well as adversely impact the credit score.
In such situations, it is better to take out an instant online cash loan to pay the bill. This way you will not only avoid delinquency of the bill but also be able to pay the bill at a cost that is far lower than the account going into collections.
Types of instant cash loans
There are several options to get an instant cash loan online. Mentioned below are three major options to get such cash loans.
- Instant cash advance: It refers to a cash advance that you may take from your credit card or some other source of credit. You can take out the money from an ATM using your credit card. The interest rate for credit card cash advances is higher than that of purchases made using the card. Also, the interest is applicable immediately (without any grace period) after the cash advance is taken. Moreover, most credit card companies levy a 1 to 5 percent fee for using the instant cash advance feature of the card.
- Short-term instant cash loans: These loans are structured like conventional loans such as car loans with some key exceptions.
- Short-term loans are usually unsecured loans wherein the borrower does not need to provide collateral or security. Thus, in case of default, there is no risk of the lender attaching the collateral.
- The period of repayment for such loans typically last for some months and not years. Also, the interest rate is relatively higher than traditional secured loans.
- Some lenders may carry out a hard credit inquiry which can negatively impact the credit score.
- These instant cash loans may come with an origination fee which may be a percentage of the loan amount or a flat amount. This fee, unlike the interest rate, cannot be reduced even if you repay the loan before the repayment period in the contract. The fee is deducted from the loan amount before disbursing the cash, or it is added to the total loan owed by the borrower after the cash is transferred.
- Instant online cash loans via payday loans: These loans are available to individuals with a regular source of income. These cash advance loans have to be repaid on the next payday. The interest rate is a lot higher on payday cash loans as compared to traditional bank-associated personal loans. One of the main benefits of payday loans is that it offers ready and easy access to fast cash, sometimes even to people with bad credit. Borrowers can apply for instant payday cash loans online and get the funds transferred to their bank accounts in a day or two, subject to the approval of the loan application.