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If you’ve been laid off recently, or have some unexpected bills you’re struggling with, or even just feel like you’re in a hole you can’t get out of, you may be looking at your options for borrowing. Maybe you’re going through a tough divorce, working multiple jobs trying to make ends meet. We get it. We’ve all been there at one point or another. One option you may come across is a short term installment loan, often referred to as a direct cash loan. A direct cash loan can help if you need cash fast. We know how hard it is to work with traditional bank loans. It can be confusing, extremely time-consuming, and may be even impossible if you have bad credit.
With a short term installment loan, you may get access to funds sooner than you would at a bank, and some lenders look past a low credit score. Neither is guaranteed, and these loans can be expensive. Here we go over some ways that a direct cash loan can help you, and what to watch for.
5 Ways A Direct Cash Loan Can Help
Especially during times like the COVID-19 quarantine and shelter in place, it can be difficult to stay on top of bills, and getting a loan to make it through can seem impossible. Here we want to go over how a direct cash loan can help you when you need financial help the most.
Easy Application Process
A benefit that comes with a short term installment loan is that these loans have a lot fewer formalities than traditional loans. Bank loan applications can take hours to complete and you have to wait days for it to process. Many online lenders can tell you much sooner whether or not you qualify.
Some Lenders Skip Hard Credit Checks
Direct cash loans can help because your financial history may not weigh as heavily. Many people applying for short term installment loans have poor to fair credit, and a hard credit check can make a current score take a hit. Some lenders won’t perform a hard credit check when they review your application, but others will, so ask before you apply.
Can Help In A Jam
Sometimes things come up and you have an emergency situation that requires money you don’t have. A car that broke down, or an unexpected medical bill, whatever you need help with, a direct cash loan can help you cover it. Just remember that a loan is still a debt, so make sure you have a plan to pay it back.
How Quickly Funds Can Be Delivered
A big reason people look at direct cash loans is speed. Some lenders can put money directly in your account soon after approval, but the timing depends on the lender and your bank.
Possibly Improve Your Credit
Another way that a direct cash loan can help is by building up your credit over time, if the lender reports your payments to the credit bureaus. Unlike typical payday loans, an installment loan that is reported can give you an opportunity to build a stronger credit profile. When you make payments on time every month, you’re showing credit bureaus that you can be financially responsible, and that can help your credit.
What Makes An Installment Loan Different
The structure of a loan matters. You want to be able to successfully repay your debt and not dig your financial hole any deeper, and some direct cash loan lenders lend out more than the consumer can ever repay.
Though payday companies usually give only 14-30 days to pay back loans, an installment loan gives you longer, and many charge an interest rate rather than fee based pricing. At the end of the day, installment loans are set up similar to auto loans and mortgages, and a lender that reports the borrower’s successful payment history can help them build their credit profile.
Before You Apply
Like we said above, sometimes it is just not possible to go through a traditional bank and it can seem impossible to get the loan you need. If you don’t have the time to go through the traditional application and processing process, or are worried that your credit score won’t qualify you, a direct cash loan may be worth a look. Some online lenders only do a soft credit pull, which won’t affect your credit score, while others run a full credit check, so find out which before you apply.
When things feel a little impossible, a direct cash loan may help. If you decide to borrow, see your loan options and read the terms of any offer before you accept.