Over the past few decades the rate of savings by American households has dropped drastically from over 15 percent to just around 5 percent. This is not due to the fact that the saving habits of Americans have changed, but more so because the cost of living has risen up significantly. Savings are really helpful during times of emergency such as car repair, medical bills, etc. Since most current American households don’t have substantial savings, they can opt for a cash loan to help tide over emergencies.
What is a cash loan?
An online cash loan, also referred to as a cash advance, is a loan that is available for a short-term period. The amount that can be availed as a cash loan is usually not that big. Also, the borrower can repay the advance in 1 or 2 installments. In most cases online cash loans can be availed by a borrower for a period of 2 to 3 weeks and later repaid after getting the paycheck.
Online cash loans are different from other kinds of cash loans in the sense that borrowers do not need to drive to a lender’s office to apply for the loan. The application and approval process is done over the internet; if the cash loan is approved quickly then the funds get transferred to your bank account at the earliest.
Advantages of taking an online cash loan
Listed below are some of the benefits of online cash loans:
- All the rules and details of the terms of the cash loan are presented to the borrower in as simple and understandable a manner as possible. All the fees and charges are clearly mentioned in the loan agreement and the chances of hidden fees are close to nil. Most of the lenders are licensed to operate in different states and each of them strives hard to safeguard the personal and financial information of the borrowers/applicants. The borrowers’ data is normally not sold or offered to third parties unless borrowers authorize the lenders to be able to do so. It is important for borrowers to verify whether or not the lenders are licensed before applying for a cash loan.
- Every time a borrower takes out a loan from a specific lender and repays it on time, his/her standing with that particular lender gets enhanced. Thus, over time, repeat borrowers tend to get easy access to more funds from the lender at a lower borrowing cost.
- The repayments of cash loans are generally reported to the credit bureaus by the lenders. This means that over a period of time regular and timely repayments of online cash loans will help improve your credit score. Your FICO score will be positively affected with on-time repayments.
- The approval process is generally quick and borrowers can often receive the funds in their bank accounts within 24 to 48 hours. This can be of great help during times of emergency.