Introduction to Fast Loans
Fast loans are loans that are easy to apply for and quickly approved. As the term implies, the loan amount will be obtained in just a short span of time compared to common loans. It usually takes a few hours and you can get the loan within the day of application. These kinds of loans also are smaller in amount but has a higher interest charge.
What are the other terms for fast loans?
Fast loans are also known for the following terms due to the similar concept of money lending:
∙ Cash advance
∙ Payday advance
∙ Short term loans
∙ Payroll advance
∙ Payroll loan
The usual repayment is linked to the debtor’s next payday (for those who are employed), credit cards or issued post dated checks.
Who usually obtains fast loans?
People who acquire fast loans often come from low to average income earners. Others may have a sudden need for financial assistance like medical emergencies, deadline for utility bills or a financial shortage that needs solid cash on hand. People in these kinds of situations would present themselves to money lenders for financial assistance.
In addition, those individuals who lack access to banking or financial institutions also resort to this in times of need. Furthermore, those small-time business owners choose to be financed this way.
Advantages of fast loans
∙ Convenience. As it suggests, fast loans are very convenient since it is approved easily without credit checks or piles of requirements. This is very helpful in cases of emergency. After the application is approved, the cash loan is credited to your bank account after a while. Also, fast loans do not require collateral so it is for everyone.
∙ Better option. For an individual with bad credit, this kind of loan is very advantageous since more probable than not, a credit check is skirted. Past credit histories will not be known to the lenders. If you don’t have that much option fast loans provide better resort when things get a little rough.
∙ Flexibility. Fast loans are flexible to be able to fulfill the client’s needs. It is set based on the individual’s income and can be on an installment basis.
∙ Accessibility. Most moneylenders like Swift Credit are situated strategically to cater to the needs of the population. In comparison to that of government financial institution they are also more of them in the business you will be able to find one in almost anywhere.
∙ Higher interest. Since the usual amount to be borrowed is based on the lenders’ salary then it is smaller in amount. However, because the application process is not thorough, some lenders will use the opportunity to make more money leading to higher interest rates.
∙ Increased potential for being misused. If the principal amount is easy to pay-off, the tendency of the debtors is to feel more complacent. Borrowers think they can easily pay it off and they tend to not be vigilant about payments. This causes the extension of the loans that keeps the interest and penalties piling up. The debtor will then be overwhelmed by the increase in amount to repay because of mishandling.
∙ Opportunity for loan sharks. These fast loans can also serve as an entry point for the opportunistic and mischievous loan sharks that can be problematic in a borrower’s life including his loved ones. It would be very unfortunate for someone to borrow money from loan sharks.
How to handle fast loans
Awareness is most important to avoid being a victim of fraudulent people often hiding behind money lending groups. If you are aware of the potential downfalls then you know what needs to be avoided.
Also, make sure that before making the loan application you have checked and verified the moneylender’s reputation and reliability. Thorough research can be done by checking reviews of friends or relatives or you can check the web.
There are benefits and drawbacks from acquiring fast loans. In order to prevent being trapped in a seemingly endless cycle of loan liabilities and being taken advantage of, you need to always be mindful of your payments. Keep in mind that you don’t want the interests from your debts to pile-up and get you in the red. Make sure to be responsible enough before making your first loan.
We hope you enjoyed our guide to fast loans. If you would like to find the best money lender Singapore has to offer then please read our reviews.