Are you in need of some extra cash? When an unexpected emergency or other financial issue pops up, having access to online loans can be a lifesaver.
However, it’s also important to understand what you’re getting yourself into. There are many different types of online loans, with fast cash loans and online payday loans being two of the most popular.
If you’ve been wondering how these types of loans work and whether they’re right for you, you’re in the right place! Keep reading for answers to 12 of the most common questions.
1. How Do You Apply for Online Loans?
Applying for an online loan is super easy! You’ll simply head over to the lender’s website and fill out their paperless application or give them a call and answer questions over the phone. In most cases, you can complete the entire process in less than five minutes.
Typically, you’ll need to provide:
- Your full legal name
- Date of birth
- Social insurance number
- Email address, home address, and phone number
- Simple employment questions
You’ll also need to provide your bank information so the lender can deposit the funds directly into your account once you’re approved. Most companies will also ask for a “safety contact,” which is a person they can reach out to if they’re unable to reach you for a prolonged period of time.
2. How Long Does It Take to Get Approved?
In many cases, approvals happen the same day you complete your application. This is particularly true if you’re applying for no-credit-check, instant cash loans.
At Captain Cash, if your loan is approved by 2 pm EST, you’ll have the money you requested on the same day.
3. Is Approval Guaranteed?
While most applicants are approved, it’s not guaranteed. If you don’t meet the requirements, you won’t be approved. While each lender is different, most will require you to be a Canadian citizen who is at least 18 or over.
Almost all lenders will also have guidelines regarding the length of your employment, how much you need to earn each month, and your general financial stability. You should be able to find the requirements on their website before you apply.
4. How Much Can I Borrow?
The amount you’re able to borrow will depend on the lender you choose and the type of loan you apply for. Your credit and employment history and your current income may also be considered.
If you’re considering cash advance loans through Captain Cash, you’ll be able to borrow $500 to $700.
5. What if I Have Bad Credit?
If your credit score is below 660 you’re considered a high-risk borrower, and if it’s below 560, you’re in the “poor” credit range.
However, there are plenty of options for cash loans for bad credit. Just search for this term online, or apply for our quick and easy no-credit-check loans.
6. How Long Will I Have to Pay My Loan Back?
Generally, short-term loans must be paid back over a period of 120-days or less. Captain Cash offers flexible payment schedules that depend on your payment frequency. You can choose to make payments weekly, every two weeks, twice a month, or monthly.
7. How Much Interest Will I Pay?
Again, this will depend on a number of factors, including the lender you choose. At Captain Cash, we make sure everything is transparent and you know exactly how much you’re paying. Our current APR is 23% with a transaction fee of $0.50.
In this case, borrowing $500 will cost you about $750 to pay back after you add in the fees and interest.
8. What if I Miss a Payment?
You want to avoid missing payments whenever possible, as this will definitely cost you! However, if it does happen, it’s not the end of the world. In most cases, you’ll be charged an “NSF fee” (non-sufficient funds).
For each payment you miss, two additional payments will be added to the end of your repayment period – one for the missed payment and one for the NSF fee. However, if you make up the payment quickly (usually within 5 days) the lender may waive the NSF fee.
9. What if I Can’t Repay My Loan?
If you find that you can’t make an upcoming loan payment, you may be able to contact your lender and ask for a deferment. There’s usually a fee for this, but it will be less than the fees for missing a payment.
10. Can I Pay My Loan Off Early?
A good lender will always allow you to pay your loan off early. Doing so will save you money in interest, so you’ll always want to make sure this option is available before taking out an online payday loan.
11. Are Online Loans Safe?
Any time you give your personal information out online, you want to make sure it’s safe. To protect yourself, do some research and make sure you’re dealing with a secure online loan company before completing an application.
Take a look through the company’s website to learn more about their encryption and other security practices before you get started. As long as you’re sure you’re dealing with a reputable company, the entire process is extremely safe.
12. Is an Online Loan Right for Me?
An online cash loan is a great way to get money in your bank account fast. However, it’s not right for everyone.
These products are geared towards people who are experiencing a temporary and atypical cash-flow crunch. They’re not meant to be a long-term lending solution, so make sure you understand your options and borrow responsibly.
Get the Cash You Need Today
Now that you know the answers to all of the most important questions about online loans, you can decide whether it’s a good solution for you. If you’re ready to move forward, it’s easy to get started.
Simply complete our online application. It takes less than 5 minutes and there’s no credit check. If you’re approved, your funds could be in your bank account today!