Comparing the Advantages and Disadvantages of Emergency Cash Loans

Getting Emergency Cash Loans can be beneficial in a number of ways. There are currently over 10,000 emergency cash lenders in the United States, with more popping up all the time. Although they can be beneficial, they have disadvantages as well. Here are a few advantages and disadvantages of emergency cash loans. 

Advantages

  • No credit check- You should be able to secure an emergency cash loan with no credit check required. This means that you can have bad credit and still get the money you need. Many other types of loans require some sort of good credit on your part in order to qualify. With emergency cash loans, you do not have to worry about that. 
  • Quick process- When you are dealing with emergency cash loans, you can rest assured that the process will be very quick. Most of the time, you can complete the application process within 15 to 20 minutes. Once you are approved for the loan, you can get the money in your account within 24 hours. This means the application process is quick and the money distribution process is fast as well. 
  • Cover bills- Sometimes it is possible to run into situations that require extra money. You have bills that still keep coming regardless of your income. When this happens, an emergency cash loan is there to get you by. It can help you through the tough times when your paycheck is still too far away.
  • No collateral- Although some programs do require collateral, you should be able to find one that is not secured by your assets. This means that you can get the cash you need without having to give someone the title to your car or house.

Disadvantages

  • Interest- Although it is convenient to be able to get the money you need when you need it, the interest rate that you can expect to pay is very high. Since these loans are usually as short as two weeks, no one stops to consider how much interest they are charged. By the time it is all done, you are actually paying over 200% APR. Consider how much you are paying for the money before you go through with the process. 
  • Add to the problem- With an emergency cash loan, you may actually be compounding the problem. With the high interest and potential fees, it usually adds up to a lot of money. When you already do not have enough money to get by until payday, an emergency cash loan can make things worse in the long term. 
  • Easy money- When you have access to emergency cash loans, you may end up using them incorrectly. Instead of using them just for emergencies, you may be tempted to buy things that you don't need and cover the bill with an emergency cash loan. 
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