The fees charged on cash loans in the US are controlled by the Consumer Financial Protection Bureau (CFPB)

The fees charged on cash loans in the US are controlled by the Consumer Financial Protection Bureau (CFPB)

It’s a US government agency that ensures lenders, banks, and other financial institutions treat you fairly. Most cash loans will charge a percentage of the amount you borrow in interest. Depending on your state’s law and the maximum amount you’re allowed to borrow, the fee amount can range from $10 to $30, and a fee of $15 is standard. You can ask for a rollover if you’re unable to pay on the due date, and it’s permitted by state law. You’ll only need to pay the unpaid fees, and the due date of your loan will be extended. You’ll then be charged another fee plus the original balance.

Many lenders charge the maximum fee allowed, but if you take your time and compare options, you’ll find some with reduced rates and attractive packages. Always make your choice based on affordability and read the agreement before you sign to ensure you’re not caught off-guard by charges and additional fees. Some lenders can charge fees for late or early payments, so look for lenders who will not penalize you when you’re trying to end your contract early or miss a payment by mistake.

Loan Amounts

Depending on the lender, cash loans can range from $100 t0 $5,000 at Viva Payday Loans. Your credit score, employment history, state laws, and your income to debt ratio will all play a role in determining the amount you can qualify for. Borrowers with high credit scores often qualify for higher loan amounts, and lenders won’t consider you as an increased risk. The amount you earn each month is also critical in determining the amount you can borrow. Lenders look at your debt to income (DTI) ratio to determine how your budget will look once you add a monthly payment into the mix. The DTI is calculated by adding all your fixed monthly payments, including rent or mortgage, auto loans, personal loans, and credit cards.

It’s generally good to have a DTI below 36%. The maximum acceptable DTI will vary among lenders. It’s recommended that you keep it as low as possible to qualify for larger loans. It’s also wise to only take out the loan amount that you need to avoid higher interest rates and longer-term payments that will interfere with your cash flow.

Lenders Reputation

Fueled by the economic fallout of Covid 19, there has been a rise in scam loans and lenders in the US. Bad lenders have always been around. Although their tactics may evolve over time, some common sense and a keen eye will enable you to spot them pretty quickly. As a borrower, you’re responsible for due diligence before applying for a cash loan or signing an agreement with a lender. You should ensure the lender you’re dealing with has a good reputation in the industry and a valid credit license in your state. Complete transparency is one of the characteristics of a reputable lender.

Stay wary of lenders who don’t disclose all the details or have contact information on their website. Always ensure you get into contracts with trustworthy lenders. Check their online footprint and reviews from past and existing clients to see any valid concerns or complaints.

Funding Time

Many borrowers choose cash loans because they’re easy and quick to obtain. The disbursement time for many cash loans is usually short as the lenders are aware of the urgency of seeking a cash loan. Most lenders will try to approve and release the funds within hours of your application, and some may take up to 24 hours to disburse the funds into your account. When applying for cash loans, you should do it as early as possible and on official working days. Different lenders have specific cut-off times for accepting applications and agreements from borrowers. If you’re approved and sign and send back the contract within the required timeframe, then a same-day payout is possible. Choose a lender that promises a quick turnaround time for payouts if you need the cash in a hurry.

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