Bad Credit Fast Cash Loan

The terrible economic situation is forcing many more people to look into the possibility of getting a bad credit fast cash loan.

A fast cash loan - which is also known as a quick advance loan or payday loan - is a onetime high interest loan of cash. Such loans are given to people who can demonstrate that they have a steady source of income such as a regular paycheck or a government benefit payment. Lenders are able to give such loans to people with bad credit because they agree to pay them off using their next paycheck.

When a person takes out a bad credit fast cash loan they agree to pay the loan with their next salary or government benefit payment. A typical fast cash loan agreement would state that you will repay the loan on the 15th of the month if your payday is on the 14th of the month.

Pay off the bad credit fast cash loan in installments

Many fast cash loan agreements let you pay off these loans in two or three payments. Others will let you change the date the loan is due on if you pay a fee usually $25 or $50. Such fees can add up quickly so people should try not to delay or change the payment dates on such loans.

Some bad credit fast credit loans are made through payday lending or check cashing stores. These establishments will give out such a loan in the expectation that the borrower will cash their next pay or government check there. The store simply takes the loan payment out of the check when it is cashed.

Other variations of bad credit fast cash loans

Another variation on a fast cash loan is a check loan or check into cash. To get such a loan a person writes out a check in the amount of the loan and the interest. The lender keeps the check as collateral to the loan and cashes it on a date that the borrower has agreed to say the day after payday.

There are also online and direct loans that utilize a person’s bank account. In this loan process the borrower gives the lender their electronic banking information. The lender deposits the funds into the borrower’s bank account. In exchange the borrower agrees to let the lender withdraw the loan payment directly from his or her bank account on a specific day. Many people prefer online loans because they don’t need to go to a check cashing store to get such a loan.

Some fast cash lenders are now making similar loans available to over the counter customers who have bank accounts as well. These loans work in the same way as the direct loans. The only difference is that the application process is completed at the loan store rather than online.

A disadvantage to such loans is the fact the money has to be in the bank account on a certain day. If the money isn’t available the lender will probably change the date of the payment but they’ll also charge the borrower a penalty.

Since the cost of bad credit fast cash loans, borrowers should only use them in emergency situations after other sources of funding have been exhausted.