While some may feel quick cash loans should never be used, the only borrowers who should use them are those who really intend to pay the entire loan back on time, avoiding the penalty fees that accrue for each late payment. These types of loans are also known as payday loans.
For a segment of the population, mostly low-income households, securing a bank account is not possible for various reasons. Sometimes there is no bank around — they may live in a so-called bank desert. Therefore, getting any type of loan to cover a financial shortfall cannot be done. A viable alternative is to request the funds from a quick cash provider or an alternative financial services provider. Payday loans are legal in most states, and they are a last resort for many.
High-interest, short-term loans are for people who are responsible enough to not allow them to make up for chronic cash flow shortages. They are best used by people who need the money to pay for emergencies and not for everyday living expenses.
Some states, such as Virginia, prohibit payday lenders from making a loan to anyone who has an outstanding payday loan. Therefore, these loans are clearly not for people who are using them as income.