Small Cash Loans With Bad Credit

People who have bad credit have access to a wide variety of options to get small cash loans to cover emergency expenses.

Payday and other small cash loan lenders know that many people who have bad credit have money. That is why they are willing to loan money to those with bad credit.

The drawback to these loans that they come with high interest rates or fees and should be paid back quickly. Those who can’t quickly pay small cash back shouldn’t take them out.

Payday and Check Loans

The two most common types of small cash loans are payday and check loans. These are very basic small loans often issued by storefront lenders found in bad neighborhoods. A big advantage to these loans is that require little or no paperwork.

A payday loan is issued to a person with a job. It is a small cash loan designed to be paid back on the next payday. Such loans usually come with a fee and only last until payday. If the person can’t pay the loan back on payday another loan is charged.

A check loan is a small cash loan in which a check is used as collateral. The person writes a check and the lender gives them a small cash loan. The check covers the amount of the loan and the interest. The lender then cashes the check on a predetermined date on which the borrower is supposed to have the money.

Small Cash Loans Online

A variety of small cash loans are also available online usually in the form of cash advances.

The online lenders usually agree to deposit an amount of money in a person’s back account electronically. In exchange the person signs an agreement that states he or she will have the money needed to pay off the loan in their bank account on a certain day. On that day the lender will take the money out of the borrower’s bank account.

The advantage to small cash loans online is that they are easy to get and fairly quick. A person can have the money in their account in a few hours or days after applying. The disadvantage is that they have to be quickly paid back. Many of these cash advances come with a high fee that is tacked on to the loan.

Short Term Loans

Almost all small cash loans are short term loans, which means they have to be paid back fairly quickly usually within a few days or a couple of weeks.

Most small cash loan lenders will extend the loan period in exchange for a fee usually $25 or a percentage of the loan. These fees can be very steep and one has to be paid every time the loan is extended. If the loan is extended for more than a month these fees could exceed the cost of the loan.

Small cash loans need to be used sparingly and paid back quickly because they can quickly drive a person far deeper into debt.