With nearly 73.2% of Canadians having an outstanding debt at some point in their lives, personal loans are here to stay. They come in handy when faced with unexpected expenses. The unifying principle here is that they offer cash when you need it. A quick cash loan is a kind of personal loan with less strict eligibility and approval requirements. It can offer you flexible financing when you need instant money. But you need to understand how this financing solution works before considering one.
Lenders have different requirements, terms, and rates on quick cash loans. Your best chance at getting a good one will depend on how you stick to the following approaches.
Determine How Much You Need and Can Afford
No credit check loans come with different limits depending on the lender. You need to consider these limits to determine whether the loan will help you get out of the financial problem you’re currently facing. In turn, it’ll be easier to weigh your options and get a loan that’s within your timeline.
Some lenders have payday loan calculators on their websites that you can use to estimate the amount you can afford. Others give you the limits you can qualify for depending on your financial circumstances.
Either way, the interest rate on the loan and your income will determine the loan’s affordability. Most lenders consider your total income after taxes and other deductions. They also look at your monthly expenses to ensure that you can comfortably pay off the amount owed.
Look at the Interest Rates
No need to worry about the lender using your credit score to set interest rates for a quick cash loan. Instead, the lender will consider your income, debt-to-income ratio, and employment status. These factors can help them assess your borrowing habits and ability to pay debts in time.
Your income will help them set a loan limit, while your debt-to-income ratio will give an overview of your existing debts compared to your income. And for the lender to be sure about your ability to pay debts, they will look at your employment history and status.
A good interest rate on a quick cash loan varies with your circumstances. If the lender is content with your ability to repay the loan, they may give you a favorable rate. On the other hand, a higher interest rate may suggest the opposite.
Gather All of the Necessary Documents
Lenders expect you to submit some documentation (mostly paperless) before considering you for a loan. They have to verify your identity to determine your citizenship status and age. At least two identification documents, such as a birth certificate, citizenship certificate, passport, or driver’s license, will be needed.
The lender may demand your recent pay stubs and bank statements for employment verification. They may also ask for your employer’s contact details and tax returns. As a self-employed borrower, you can verify your income with income tax returns and bank statements.
Lastly, the loan provider will want to know the stability of your lifestyle. In this case, you may have to share your utility bill, credit card or bank statement, and rental or lease agreement with them for the assessment.
Learn About the Loan Application Process
It’s common for most lenders to ask you to fill out a formal document to start the lending process. As you consider taking the loan, note that application processes vary. Your loan purpose and limit are largely important in this context.
Most lenders can allow you to make the application online. Others may require you to do it offline, depending on their policies. Either way, you should have a general idea of what to expect from the process.
Look at How Long the Approval Process Takes
The approval timelines on fast cash loans vary with the lender, loan amount, and your unique borrowing circumstances. Knowing these timelines beforehand will help you estimate when the funds will be sent to your account.
If you have an urgent expense, you definitely wouldn’t want to wait any longer to get the funds. The maximum timeline you can take, in this case, can be 24 hours. Beyond that, the funds may not be as helpful as you were during the emergency.
Consider an online lender if you want a simple application process and fast approval times. Some lenders allow same-day approval/funding, while others take a maximum of five business days to process the online loan.
Review the Lender’s Eligibility Requirements
You have a better chance of getting a quick cash loan if you meet the lender’s eligibility requirements. Most of them will expect you to have a steady job and cash flow or income and a checking account. A minimum earning threshold may also be set on the loan.
The eligibility criteria for most quick loans factor in age (at least 18 years) and financial stability. You may also be required to have an active Canadian bank account and a low short-term debt ratio.
Apply with Several Lenders
It might be difficult to know that a lender is offering you a good deal on a quick cash loan if you don’t compare it with others. You should therefore apply for a loan with several lenders and gauge their offers for a good deal or rate. As you do this, take time to compare their fees and rates.
Sending a few applications may block you from getting a good deal. Even more, too many applications may attract unwanted back-and-forths. The goal here is to only get estimates from lenders with good reviews and proven track records.
Get a Quick Cash Loan Today
A quick cash loan can come to your rescue when you are in dire need of finances. It’s a great solution if you have completely exhausted other sources of finances. To get a good deal on this type of loan, understand what you want and shop around while considering terms and rates that favor you.
Make KingCash your go-to money lending service in Canada when in need of quick cash ranging from $500 to $750. The good thing is that you are allowed to pay back the cash in more than 120 days and can qualify even with a poor credit score. Go ahead and claim your cash to attend to that urgent expense.