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Jessica, Dallas, TX
From the financial perspective, there’s no real difference between cash loans and short-term loans when you try to obtain them online. This denomination has been borrowed from cases when customers get the money from their lenders directly in cash, but in the past twenty years it came to signify just about any fast loan you can access.
When it comes to the source of the loan, we differentiate between three types of cash loans, with some characteristics being universal to all lenders. Before mentioning them and explaining them in detail, here are the features that stay unchanged, irrespective of the cash loan type you’re dealing with:
- The amount approved is limited to small to medium sums of money;
- The interest rate might be slightly higher than the one of a long-term loan, but the difference you get to pay back is insignificant considering the amount taken out;
- Cash loans are conceived for short periods of time;
- The documentation needed for the application process is minimal;
- The time needed for the analysis is short.
Most banks check for credit history and credit score and that means that it can limit the amount you may obtain or completely disqualify you from getting a loan at all. For more information, contact us at www.unitedfinances.com and we will be able to help you.
Banks don’t need a lot of time to analyze your application, but the fact that they check your credit score may slow down the process. This is why, if you need cash loans fast, banks may not be your best option. Also, having your credit history pulled many times can actually affect your credit score, and banks always check your credit history.
The degree of flexibility increases when you try to obtain such a loan from a financial company or institution that is not a bank. The competition is very high in this sector and so the offers are extremely varied and complex. These companies require proof of income, but some of them (if not the large majority) won’t check your credit score. So if you want to obtain such a loan and your credit score is less than perfect, this niche may very well be what you’re looking for. What is more, some payday loans companies will only require your valid ID card to approve small amounts of money on short notice.
The documentation you need for this case is not as extensive, but the APR will be slightly higher than those of their counterparts. In this particular case, the advantage is that the borrower is approved instantly upon the agreement.
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