Lately it has been happening more frequently. The bills come due and we are short a few hundred dollars. If either the bills could wait a week or two or the paycheck could arrive earlier, there would be no problem. An overnight cash loan will solve the problem, but at what cost.
Here is what you need to know to avoid some of the drawbacks to a quick cash loan.
The paycheck loan is a devise that tides you over for the short term. You can generally get, depending upon the state in which you reside, up to $1000 by tomorrow. But you also need to pay it back within a very short time. Most states permit this quick cash loan to last no more than 30 days and in many cases just 14 days. That is a major drawback for many people. It would be far more palatable if the loan could be extended.
Some states do allow for extensions. In other words, if the loan is due in 14 days and you don't have the money, then it can be rolled over for an additional 14 days. The problem is that you will need to pay the initial interest and the new interest. The overnight cash loan becomes, at this point, far more expensive than you initially planned.
Although this quick cash loan solves the temporary cash short-fall, the reality is that it is a symptom of perhaps a larger problem. It may benefit you to determine the underlying cause of the need to borrow additional money for such a short period of time.
Getting formal approval is very easy and that creates a false sense of financial security. Once you have the funds, it becomes easy to feel like your credit has improved and in most cases, a credit check is not required. So the credit score remains unchanged.
There are many other insights into solving some of these financial problems that any borrower should know before they get an overnight cash loan from the online or brick and mortar providers.