Top 3 Rules for Responsible Use of Cash Loans

Cash loans, also called payday loans, get a lot of negative press because they have high APRs. In fact, these are fee-based loans and are not meant to be annual loans, nor are they legally able to become annual loans. So, the hype about high APR is misleading. Banks and utilities often have fees much higher than online payday loan fees. If you are short in your checking account and have 4 checks that have not been cashed, you could be subject to a $35 NSF fee four times, or $140.00. That’s way more than a payday or cash loan fee since most of these loans are for under $500.

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But when you get a cash loan, and you know your fee amount in advance, you can easily plan for repaying it. This is the critical factor, knowing you can repay it on the due date. If you are sure you can do so, then your risk is minimal.

A Cash Loan Is an Emergency Source of Income at Minimal Risk

Let’s face it, millions of people run short of cash at times. Usually, because of an unexpected expense like an auto breakdown, medical emergency, or a similar situation. A cash loan can provide an emergency source of income when your budget is already maxed out on fixed monthly expenses.

Top 3 Rules for Responsible Handling of Cash Loans:

  1. Don’t Get a Cash Loan If You Can’t Repay It

    Most people in need of a cash loan don’t have much cash on hand and are living paycheck to paycheck. And they also have some credit issues. There is nowhere else to turn except for a cash or payday loan. All other options are gone.

    You should not go deeper into debt, if at all possible. But sometimes the loan will actually save you money (note the NSF fee example above). The key thing is to make sure you can pay back your loan as agreed with your lender. Then, create a budget, one you can live with that will allow you to handle your expenses and also put a little money aside. Even if you save only $20 every paycheck, you are going in the right direction.

    When you get a cash loan, only borrow exactly what you need and then repay it on time. Any extension of your payment will only cost you more money, and you want to avoid that from happening.

  2. Make Sure You Make Your Payment on Time

    It is critical that you make your loan repayment on the date you originally agreed to do so. Usually, cash loans are paid back in a single payment from your next paycheck. Be sure you are comfortable doing this. If you miss the payment, as noted above, you will have additional fees and will only increase your debt situation.

  3. Cash Loans Are Not for Everyday Expenses or Luxury Items

    Cash loans are for emergencies only! Never use a cash loan for buying a new TV or some other luxury item. It is not an emergency, even if your old one died. Save up the money to buy it. But if your car broke down and it is required to get to your job, then you have to fix it right now... that is an emergency and why you might get a cash loan.

    If you find yourself in a cash crunch, do not be afraid to consider a cash loan. Just follow the tips, and you will find that it can help you in a tough situation. The last thing to know, always understand all the terms and conditions of any loan you get and do not be afraid to ask questions of your prospective lender BEFORE you accept a loan offer. You are never obligated to accept a loan offer.

Get your cash loan of up to $1,000 in your checking account as soon as one business day from



Robin Williams

Robin Williams is the General Manager at CashOne, a reputable financial services company that helps consumers tide over their short-term financial crises. Our fast, convenient, and secure online loan application eliminates the unnecessary hassles or time required to procure payday loans online.

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