The idea of quick cash loans is quite tempting for many people. It allows them to get money quickly as and when they need it. Now the question is what’s required to qualify for this loan type; let’s find out.
Income Proof
Your ability to repay a loan is always dependent on an income proof. If you are an employed person, it’s not hard to offer proof of income through your last 24 months pay stubs. Your bank statements and tax returns are other documents through which the lender will get an idea of how capable you are to handle this loan facility. A lender will do a debt-to-income ratio analysis while determining your qualification for a loan amount.
Credit Score
When you get a quick cash loan, another thing matters for a lender: your credit score. The higher the score, the better chances of quick loan approval will be. However, there is a flip side to this requirement. Many online lenders are facilitating their customers with poor or zero credit. That means a borrower is getting a quick cash loan regardless of his credit score. This score matters for traditional financial institutes more than online lenders. However, one crucial point to note is that if a lender is ready to offer you a quick loan without considering your credit score, then he will always add a high-interest rate in a deal.
Collateral /Cosigner
If you are interested in getting quick cash loans of a big amount, you either need collateral or a cosigner for this. Generally, an unsecured loan up to $25000 is available without collateral. However, when your credit score is low, an immense loan amount requires you to put your assets at stake. Some online loan providers request you to bring a cosigner for a loan when you have no credit.
While you may qualify for a quick cash loan, it is pertinent to mention that you can always take the help of loan officers or loan brokers who can assess your financial situation and advise you regarding your loan options. While quick loans may give you immediate access to cash, it can carry a higher interest rate. A loan officer will give you all borrowing options and whether going for a quick loan will serve your requirements. If your need is not immediate, some secure loan options may be more feasible for you as it comes with a lower interest rate.