What is a quick cash loan?

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A quick cash loan allows you to access cash almost instantly. Often seen as emergency loans, quick cash providers will process your application quickly and often don’t need as much documentation as traditional loans. 

While quick cash loans are handy for covering unexpected expenses, repayments can be high. Let’s take a look at everything you need to know about quick cash loans.

Let’s get to the following commonly asked questions:

  • What are quick cash loans?
  • How do quick cash loans work?
  • What types of quick cash loans are available?
  • What is the application process?
  • What are the eligibility criteria for quick cash loans in Australia?
  • Online vs. in-person applications, which is better?

Q1: What are quick cash loans?

Quick cash loans, also known as fast cash loans or short-term loans, provide individuals with the ability to borrow small amounts of money quickly. These loans are typically intended to cover immediate financial needs and are often available with less documentation and an easy application process.

You can apply for a quick and easy cash loan online or in person. You’ll typically get flexible repayment options. The types of loans include:

Please note that quick cash loans won’t automatically solve your money problems. It’s better to go with responsible lenders with fixed interest rates rather than getting approved fast.

Q2: How do quick cash loans work?

Fast loans work similarly to traditional ways of borrowing money. If the borrower is eligible to apply, they typically apply online and go through the application process. The application form usually asks for only basic information to assess your current financial situation.

After receiving the application, the lender assesses the borrower's creditworthiness. Quick cash loans often have less strict approval criteria than traditional loans, making them accessible to individuals with a lower credit score or limited credit history. 

The lender may conduct quick credit checks or use alternative sources to evaluate the borrower's ability to repay the loan. This flexibility is especially advantageous for those seeking bad credit loans, as it provides them with an opportunity to secure funds when traditional lenders might turn them away.

If the loan application is approved, the funds will be directly debited to the borrower. In many cases, the money is transferred electronically to the borrower's bank account, allowing quick access to the funds.

Related: Everything you need to know about credit checks

Q3: Exploring the types of quick cash loans available

There are many types of online cash loan options available to Australians. With just a quick online application, you can gain access to loan products such as a payday loan or flexible repayment options.

 Let’s take a look at the two most popular types of loans.

Payday loans

Payday loans are a type of short-term, high-interest loan designed to bridge the gap between a person's current financial needs and their next paycheck. 

They often cover unexpected bills or urgent expenses that arise before the borrower's regular payday. Payday loans are usually smaller, and the repayment term typically coincides with the borrower's next payday. 

It’s important to note that fees and charges for payday loans are high. While you can access money fast, it’s expensive to borrow and could worsen your financial situation and tank your credit ratings.

Online instalment loans

Online instalment loans are a line of credit that provides borrowers with more flexible repayments than traditional payday loans. 

These loans allow borrowers to repay the amount they borrow, along with interest and fees, over a series of equal instalments. The repayment amount and term can vary depending on the lender, ranging from a few months to several years.

Simply provide your bank account details, and you’ll receive a money transfer instantly after the approval process.

While instant cash can be alluring, consider the annual percentage rate of your loan and whether you can afford the loan repayment plan. It could lead you into a cycle of debt. 

Read more: Everything you need to know about payment plans

Q3. Why are interest rates a crucial factor in determining mortgage affordability?

Q4: What is the application process?

The application part of the loan process for quick cash in Australia is fast and convenient. It’s why they’re called “quick loans”. Most online loans require very little documentation and will deposit money into your account within a few days. 

Let’s take a look at the eligibility criteria for easy cash loans and whether you should apply for the loan online or in person.  

Eligibility criteria for quick cash loans in Australia

The eligibility criteria for quick cash loans in Australia can vary among lenders, but some standard requirements include:

  • Borrowers must be at least 18 years old
  • Borrowers should be Australian citizens or permanent residents.
  • Lenders typically require borrowers to have a regular source of income, such as employment or government benefits, to demonstrate their ability to repay the loan.
  • Having a good credit history can improve the chances of loan approval and may lead to more favourable terms.

Online vs. in-person applications

You can apply for a quick cash loan either online or in person. Here are some of the pros and cons for each: 

Online application

  • pro: Online applications can be completed from anywhere, anytime, using a computer or mobile device with internet access.
  • con: While reputable lenders have secure websites, there is always a risk of data breaches or scams with online transactions.

In-person application 

  • pro: In-person applications allow borrowers to receive personalised assistance and guidance from loan officers or representatives.
  • con: Applying in person can be more time-consuming than completing an online application.

Summing up

While quick cash loans can be an easy and effective way to borrow small amounts of money fast, they typically come with high repayment fees. It’s essential to practice responsible borrowing when applying for fast loans, or you could end up in a cycle of debt.

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Disclaimer: The author is not a financial advisor and the information provided is general in nature and was prepared for information purposes only. This article should not be considered to constitute financial advice. Accordingly, reliance should not be placed on this article as the basis for making an investment, financial or other decision. This information does not take into account your investment objectives, particular needs or financial situation.

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