Quick cash loans are loan products that are especially popular among people who have low credit scores or no credit scores to speak of. This is because they are very easy to get. Lenders, if you apply for a loan now, will see to it that you get the money within as short as 24 hours. This is really convenient and sometimes a life saver considering that traditional sources of credit like banks and credit unions typically do not lend money to people with bad credit.
But of course, like anything else, you do pay for the convenience. And what is the price you pay for quick cash loans? You pay for them with high-interest rates. And by high-interest rates, we don’t just mean 19% or even 24%. You can search for the different lenders and compare them, you will see that the lowest interest rate you will find is 25% with the highest interest rate being 36%. If that is not ultra high, we do not know what is.
But high-interest rate aside, you should know that you also pay for it with the low loan amount. While you can start borrowing at $100, most lenders are only willing to lend up to $1,000. This is because of the risk involved. People with low credit scores are often seen as people who struggle to pay their loans. However, there are lenders out there who actually take a look at your current financial situation and your capacity to pay. If they feel that you can repay your loan, you can actually see loan amounts increase to thousands of dollars, sometimes up to $10,000 or more.
The important thing to do here is to take a look at the different lenders and compare their products.