Cash Loan Company

Unexpected expenditures can be paid through a cash loan company to get a fast advance usually within 24 hours. The businesses that specialize in quick cash advances have streamlined the process to allow the borrower to have the funds in less than 48 hours. Loans are always collateralized, which means that interest bearing cash advances require something of worth to be placed as intent to repay. For example, the standard mortgage is collateralized by the house itself. If the borrower does not repay the bank like he promised, the house will be taken away in foreclosure. Much the same way, an automobile is collateralized by the car dealer or bank when lending the funds. If the owner does not make the regular payments, the car will be repossessed by the lender. A cash loan company is no different. There are many acceptable forms of collateral to obtain quick cash advances.

There are requirements that are common among all same day lending institutions. There is a minimum age requirement for borrowers. These requirements are set by the state authorities and lending regulatory boards. Usually the minimum age is at least 21 or 22 years old. All same day lenders have a minimum monthly income. It is typically around the state guidelines for poverty. For example, if $650 per month was the state's poverty line, then the same day lender would require the borrower to earn at least $650 per month to obtain a loan. In addition, all same day lenders require that the borrower be at his or her job for a minimum amount of time. Sometimes this minimum is 6 months, but sometimes it is only 3 months. If the same day lender plans to electronically deposit and debit from the borrower's checking account, then the account number and bank routing number will also be required in the application for.

That being said, a cash loan company may require or accept a different form of collateral than another. The first type of collateral is the borrower's pay check or anticipated salary. If someone needs money fast for an unexpected car problem or an emergency dental procedure, he or she may be unable to wait for a week until pay day. Emergencies will not wait until the victim or patient has the money and the time to handle the unfortunate circumstances. For this reason, same day lenders are willing to offer the borrower money within 24 hours of the application. The borrower simply visits his local instant lender or finds one online. An application form will be required from the borrower. These application forms ask about address, length of residence, employment, length of employment, salary and schedule of pay check allotment from the employer. Luckily, a person's credit score is seldom required. This allows individuals with damaged credit to still have access to money in the event of a tragedy or emergency expense. Part of the application process will also include submitting pay stubs, bank account numbers and perhaps even phone numbers of references. Ideally, the pay day lender simply wants to see that the borrower has the salary to support the payments that will be resulting from the advance. This sounds exacting, but in the long run the borrower will be happy that their salary was matched with a more appropriate amount.

After the cash loan company processes the application form and checks the references, a check will be drafted or a transfer will be made into the borrower's checking account. The funds usually go in as cash or secured funds, so that the borrower has instant and full access to the money right when it is deposited. This avoids the standard banking hold placed on personal check deposits. If the money is directly deposited into a checking account, more than likely it will be this same checking account that the cash loan company debits for the monthly payments. Obviously, the borrower will have to agree to the terms of repayment. This repayment agreement includes the interest rate, payment amount and account to be debited.

Another form of collateral often accepted by a cash loan company is a borrower's vehicle. There are a few stipulations governing the use of a car for collateral in a same day loan transaction. The borrower has to actually own the car. A car that is still owned by the bank is not sufficient for collateral. This is due to the fact that if the borrower defaults to the same day lender, the car cannot truly be repossessed, because there is still a lien holder in possession of the title. For this reason, the title of the car will be required to prove that the borrower owns the vehicle. For obvious reasons, the borrower cannot ask for more money from the lender than the car is worth. Typically though, same day lenders only offer amounts under $1500 USD.

The third type of acceptable collateral is an income tax form stating the amount of the return. A cash loan company can work with tax agencies to give the borrower an advance on the amount of the eventual income tax return. For example, if someone is guaranteed to get $850 back from the IRS, but simply cannot wait for 6 weeks in order to fix their car or pay off the emergency room bill, a cash loan company or tax representative will advance them the money. In the mean time, the borrower will owe either a hefty fee or interest payments to repay the services of the lender. "The rich ruleth over the poor, and the borrower is servant to the lender." (Proverbs 22:7) When the income tax return comes, it is the legal property of the lending institution. However, at that point the borrower is now safely out of a jam and moving on with life.