You often hear financial advisors saying that saving for the rainy days is essential to keep one from falling into deep financial troubles. However, with more than 13 million Aussies not having any savings at all, it’s hard not to seek and apply for urgent caveat loans. These kinds of loans are ideal for emergency and urgent financial needs.
If payday is quite far and you need some fast cash to pay for an urgent bill, hospitalisation expense, or emergency travel, short-term loans are here to alleviate your burden. So, what exactly is the mechanism of these quick cash loans?
Who are qualified to apply?
Though requirements vary from one lender to another, most of the time, anyone with a steady source of income, is over 18 years old, and has a bank account under his name can apply for a quick cash loan. Compared to the bank and private lending firms’ loans, the requirements for approval of this kind of loan is more relaxed and less complex. You don’t have to present lots of financial documents to prove your capacity to pay. For as long as you have a steady job which can help you pay for the loan, your loan application can be approved.
Will your credit score matter?
If you’re filing for a bank loan, your credit score will surely matter. This is not the case with urgent caveat loans. In the latter, you can still apply and get approved even if you have a low credit rating. The good thing is you’re given a chance to redeem yourself. Soon, if you establish a good credit rating by repaying your loans on time, your credit limit will also increase. If you reach this stage, you can repair your credit score.
One factor used in measuring your credit score is the difference between your available credit limit and your loans. If you have a higher credit limit and you have lesser obligations, chances are, your credit score will get better.
Why is having a bank account necessary for the approval of the application?
The process of applying for urgent caveat loans starts with answering the company’s online application form. You’ll only provide your name and other contact details. After that, you’ll be asked to provide your ID along with your bank account. Your bank account will be used to deposit the proceeds of your loan. It should be in your name, otherwise, your loan might be rejected.
The ratio behind such a requirement is to make disbursement easy for the customers, while also protecting the interest of the company. With a bank account, they can be assured that you are exactly who you present yourself to be. This can also serve as the lender’s proof that, indeed, you owed them money. If you refuse to pay your obligation despite diligent efforts from the lender to provide you with helpful payment schemes, the bank transfers made to your bank account will be used as proof of your obligation when they decide to pursue any legal action.
The best thing about quick cash loans is you get the money you loaned at the time you most need it. You don’t have to wait for days before you get approved, too. For your urgent cash needs, Finance OK got your back!