Short-term, high-cost loans of $500 or less that are typically returned on your next paycheck are commonly known as “slick cash loans.” You may be able to get slick cash loans through storefront payday lenders or online, depending on your state’s regulations.
The following are some of the most common qualities of a slick cash advance
The loans are for small amounts of money, and some countries have imposed a limit amount for a short-term cash advance. There are restrictions above and beyond the normal $500 borrowing limit.
When the borrower obtains money from another source, such as a pension or Social Security payments, such as unemployment compensation, he or she is expected to repay the quick cash loan in a single payment. The due date for a slick cash loan is typically two to four weeks after the day it was granted. In the swift cash loan agreement, the due date for the loan is clearly stated.
- You may either write a postdated check or give the lender formal permission to electronically withdraw money from your bank, credit union, or pre-paid card account to pay back the loan amount, including fees and interest. Your check will be cashed or money will be electronically removed from your bank account if you don’t pay back the loan by the due date.
- There are very few payday lenders that do not consider your ability to pay back the loan while also attending to your other financial obligations.
- Depending on how you choose to receive your loan proceeds, you may get them in the form of cash, check, electronic funds transfer, or pre-paid debit card.
Other aspects of the loan may be different as well. Slick cash loans, for example, are generally constructed so that they may be returned in a single lump payment. Depending on the state, lenders may be able to “rollover” or “renew” a loan, allowing the consumer to pay just the fees owed and the lender to prolong the due date of the loan. Some slick cash loans may be repaid over a longer period of time, depending on the precise conditions in which they were taken up.
The cost of a fast cash loan
In many states, slick cash loan fees are restricted at a maximum of $10 to $30 for every $100 borrowed by law. Fast cash loans may be obtained for as little as $15 every $100 borrowed, resulting in an APR of more than 400 percent. Credit card APRs, on the other hand, may range anywhere from 12 percent to over 30 percent. Payday lending is legal in many places, but the fees charged and the maximum loan amount are all strictly regulated.
Your state’s laws may allow, restrict, or ban these loans
Payday lending may not be available in certain places because state law does not permit it, or because payday lenders have chosen not to does business in such areas at the permitted interest rates and costs. State regulators and the state attorney general may be able to provide more information if you reside in a state that authorizes or controls payday lending.
Protections are given to those who serve in the military
The Military Lending Act provides unique protections for active duty service members and their families. Additionally, the Military Annual Percentage Rate (MAPR) is limited to a all-out of 36%, and lenders are prohibited from charging excessive interest rates on payday and other consumer loans.
