Quick money loan or quick payday loan !
The term quick money loan or quick payday loan, does not equate to quick money or cash. However, for an applicant who make an online application with all the essential document, the applicant will likely receive the money in the checking account within 24 hours. However, if the applicant were to visit the lending company personally to make the application, the money will be available within half a day.
So what is quick money loan ?
A quick money loan is simply a short term loan that commands high interest rate. It is meant to help resolve any emergency financial deficit and then repay off the loan quickly, preferably within a time frame of one to four weeks. For such loans, the loan company lend the applicant a said amount, and the borrower either write a personal check payable for the loan amount plus additional fee, or the applicant may choose to may payment via electronic withdrawal from the checking account on the due date.
Always read the fine prints in the contract prior to signing it and check the fees schedule. Be fully aware that the fees chargeable is based on a certain percentage of the loan quantum or it could be chargeable for every $100 borrowed. There will be additional fees, when the applicant failed to make full settlement on the due date and request for an extension, better known as “rolling over”.
Each time the payment date is extended, additional fees will be charged. A typical quick money loan chargeable interest rate may range from 390 percent to nearly 900 percent and that most of the quick payday loan lenders are discrete about the actual loan interest rates payable !
Next, with regards to quick money loan, keep in mind of the repayment schedule. Always use such loan for emergency purposes and then pay back the amount in full as soon as you have the funds available, otherwise, the interest plus any additional fees will stack up and snowballed into a much larger quantum; which eventually lead to serious financial debt.
Understand the principle of how compound interest work for such loan scheme. For every extension or roll over, the applicant will have to pay additional fees on top of the compound interest, so the longer the loan is extended, the greater will be the loan amount payable and the interest will keep compounding. This will definitely increase the revenue of the loan company and in most instances, the lender would have anticipated such scenario to occur !
Things to consider if you take out a quick cash loan :-
(1). Don’t be afraid to ask alot of questions. Read carefully - and take home with you - a copy of the loan agreement that you are being asked to sign. Don’t feel pressured to sign the loan agreement right away if you have questions and want more time to read through the agreement on your own. If the lender does not want to give you a copy of the agreement, look for another lender.
(2). Be sure to ask for all the fees, charges and interest that apply when you first get the loan, and what other charges you will owe if you can’t pay the loan back on time.
(3). If you are taking out another quick money loan at another location to pay back the first quick money loan, or you are extending or “rolling over” the loan that you had with the same lender, you could find yourself in serious financial difficulty. The fees, charges and interest will add up quickly on these types of loans, which can put you into serious debt.
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