Fast Loans With Monthly Payments: Your Options

Many of us have heard about cash advance loans that provide money over the short term.

Whether they use in-person or online payday loans, consumers can get cash quickly and repay the loan with their upcoming paycheck.

Some financial experts warn of the horrors of these loans.

The fact is that fast loans with monthly payments are sometimes less expensive than unauthorized bank overdrafts.

Finding the bank account short in relation to pending bills can be scary.

Utility companies will not wait for payment and credit card issuers charge late fees and interest if bills are not paid. The decision becomes whether to let the bank balance go into the red or take a loan.

One problem with the second option is that banks do not provide fast cash loans in small amounts and many do not issue any cash loans quickly.

Fast Loans With Monthly Payments Can Be Cheaper Than Bank Overdrafts

Another way to get the money is through cash advance loans. These are fast loans with monthly payments that include a fee representing a specified interest rate. The interest portion of these cash loans is usually much higher than what a bank would charge.

However, consumers get the cash they need in a hurry. In addition, some lenders provide these short term loans without running a credit check on the borrower, making them suitable for someone with poor credit.

Through online research, consumers often realize that some fast loans with monthly payments are cheaper than unauthorized overdraft charges from their bank. This may seem hard to believe, given that instant cash loan annual percentage rates are often in the thousands or higher.

However, on any given day, a person may be able to find fast cash loans online with lower fees than bank overdrafts.

Sky High APR

At one point, popular quick cash loan provider Wonga was charging a fee of 25.77 pounds to borrow 200 pounds for ten days. During this same period, HSBC, Nationwide, RBS/NatWest, Halifax, Santander, and Lloyds TSB banks each had a higher fee for an unauthorized overdraft of the same amount for the same period.

In fact, Lloyds TSB was charging a whopping 85.95 pounds, which equates to an APR of over 46 million percent.

Rather than listening to the naysayers, consumers should explore lenders providing fast loans with monthly payments and see what they have to offer. They may be pleasantly surprised when they discover the charges and repayment terms. Anyone who knows the need for cash is only temporary and can repay the loan quickly may pay a reasonable amount of interest.

If a person manages to secure a fast cash loan that is reported to the credit bureau, all the better. This loan can be used to improve the credit score. Even if the rating is not suffering, it helps to show responsible repayment of debt. People with no credit history can begin building their credit score to illustrate that they are good risks.

Fast loans with monthly payments can be a surprising solution to a temporary need for money. People who are smart consider every option and find the one with the lowest cost. In some cases, this will be a quick cash loan rather than a bank overdraft situation.

The financing may even be able to help improve or establish credit rating, making it easier to secure other cash loans in the future.