When you come to think about it, short term cash loans are really no different from payday loans and cash advance loans. They’re basically different names for the same loan product. These loans do not check your credit score and they don’t make a fuss on how long your credit score is. What does matter is that you prove you can repay the loan at due date.
Lenders that offer short term cash loans usually only require you to show proof of income. This could be your pay slip or some other proof of income. Once your loan is approved and your documents are processed, you only need to wait for 24 hours to 48 hours for the money to appear in your bank account. If that’s a really convenient way to get a quick infusion of cash, it is. And this convenience is the main reason why these lenders have become so popular online.
But of course, just because they are convenient, it does not mean there’s no price to pay. With cash loans, you usually pay a very high interest rate. Sometimes it could be as high as 300%, especially in states where the cash loan industry is not regulated. It’s sad but you know how it is, you only get what you pay for.
That said, whenever possible, you should try to get a loan from traditional sources like banks and credit unions, especially if you have property that you can use as collateral. If you only need a small amount like $500 or $1,000, you could have an expensive piece of jewelry or electronics pawned. Pawn shops are typically charge lower interest rates because they are holding on to something that they sell later if you’re not able to repay your loan.