Loans can be really useful but also, they can often just seem useful while being quite unsafe for the borrower. A direct lender’s fast cash loan is one of the loan products that sees a strong rise in demand during the Christmas season. However, while some borrowers manage to choose the right loans from the right lender and use them well, some fail to do one or all of them. This can end up in a financial disaster. As an online lender of fast cash loans, we believe it can be of value to our borrowers, if we can help them understand simple ways to be financially safe when taking such a loan to celebrate this Christmas.
Assess Your Need for a Loan to Celebrate Christmas
Before you go ahead with applying for a loan, you must first determine your need for a loan. Loans can be expensive, especially when your credit scores aren’t the best. You can look at factors like these, to know if you really need a loan:
- How much do you expect to spend this season?
- Are there expenditures that can be avoided without harm?
- Do you have some savings that can be dispensed?
- Can you borrow from a friend or a family member without hurting a valuable relationship?
- Is there something of value that you can sell without a repercussion, to generate the cash needed?
Once you think of answers to such questions and you know that taking a loan is the right step, you can move ahead.
Is a Fast Cash Loan Safe?
Any loan is safe as long as 2 factors fall in place – you should be able to repay the loan you borrow, and the source you borrow from, should be legitimate. Here, we explain these two aspects.
1. Loan Safety – Your Ability to Repay
A loan – especially one from a direct lender – can get exponentially expensive when you aren’t able to repay it on time. Some direct lenders may offer, to some extent, the flexibility of extending payment tenures when you’re unable to repay it on time, but this is typically associated with a cost. Other may simply charge heavy penalties and/or take the case to recovery agencies or a court.
2. Loan Safety – the Lender Aspect
Who your lender is, certainly makes a difference. Typically, traditional loans from established banks and institutions are considered to be the safest option. However, if you need a fast cash loan, you’re likely to be dealing with a non-bank direct lender or a broker who sources a loan from a direct lender. In either case, it is important to ensure your lender is legit, follows all legal norms and has a good service reputation.
Ensuring that these two points are always taken care of when you’re securing a fast cash loan is important for your financial safety and we discuss simple ways to do so.
Only Borrow What You Are Likely to be Able to Repay
Although good lenders make an estimate assessment of your loan repayment ability, they may not have the tools and information to be 100% sure about it. Hence, knowing how much you should borrow, such that you can repay your loan on time, can be a very important thing, especially when you choose to take a loan that features no credit checks.
The simplest way to do this, is to compare your income with your expected expenditures and estimate how much repayment potential you have, and what amount of a loan principal that could cover.
How to Identify which Fast Cash Loan Lender is Unsafe?
Thanks to the many regulations enforced during the recent times, it’s safe to say that the lending industry today is much safer than ever before. Nonetheless, there are fictitious lenders as well as lenders with a reputation of malpractices that exist out there and it is good to keep oneself safe from such entities.
Here are some ways in which you can identify an unsafe lender easily:
- An online lender with a bad quality website is likely to be illegitimate
- A lender with poor online reviews and rating must be avoided
- A lender making offers that are too tempting is almost certainly illegitimate
- If a lender is offering first time users huge loans with no delays and no verification’s, important safety checks are probably being skipped
- Pawn-store lenders and brokers whose services are hard to verify, are probably best avoided
Avoiding such lenders is a simple way to know that you’re being safe.
Get a Fast Cash Loan this Christmas
Ready for taking the next step towards a fast cash loan for your Christmas celebrations? We at CashAmericaToday offer a simple and fully online solution which you can use at any time. Simply head to our online loan application and you can get a Christmas loan in as little as a single business day!