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Six Assumptions You Shouldn't Make About Cash Loans

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Many consumers can benefit a great deal from taking out a cash loan to handle expenses. Don't be discouraged from applying for and taking out such a loan because you make hasty assumptions. The following are six assumptions you shouldn't make about cash loans. 

Assumption: You won't qualify for any cash loans if your credit score is not high.

Cash loans are available to consumers with a wide range of credit scores. While a consumer with an extremely low credit score may not qualify, many consumers with scores in the poor, fair, and good ranges can qualify if they look around. 

Assumption: Cash loans will involve interest expenses and fees that are excessively high.

Some cash loans on the market might be expensive. However, consumers should be able to find reasonably priced cash loans if they do their research. Finding different lenders and getting quotes on the loans they offer is the best way to find cash loans that don't come along with excessively high-interest charges and fees. 

Assumption: You'll be required to provide collateral that you don't have in order to qualify for cash loans.

While many cash loan offers will require collateral, not all do. There are unsecured cash loans out there available to consumers who have a high enough credit score to qualify. 

Consumers should also consider that they may have collateral that they can easily offer to secure a loan if they are not eligible for an unsecured cash loan offer. Many lenders allow consumers to use their home or automobile as a ready source of collateral to secure a cash loan. 

Assumption: Taking out a cash loan will damage your credit.

Simply taking out a cash loan shouldn't have any negative impact on a consumer's credit. Cash loans can only damage a consumer's credit if the consumer falls behind on the payments and late payments are reported to the credit bureaus. 

Assumption: You can only get a cash loan through a bank.

Don't limit yourself to banks when you're searching for cash loans. A lot of different types of businesses may offer cash loans including private lenders and credit unions. 

Assumption: All financial institutions offering cash loans will offer more or less the same terms.

Cash loan terms can vary significantly among different lenders on the market. That's why it's always important for consumers to discover the many options available to them.

Most lenders allow prospective borrowers to prequalify without any damage to their credit score. Prequalifying is a great way to discover the terms that you can get from different lenders out there before deciding on the best cash loan for your unique situation. 

Contact a local cash loan service to learn more.