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Quick Instant Loans: What You Need To Know Before Borrowing

Unexpected financial distress is a common thing in our daily lives. With a poor credit score, getting a traditional loan may be impossible. Instant loans in such circumstances come in handy because they are readily available and have an instant approval.  They can be a good solution to an emergency that can’t wait.

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So what are instant loans?

These are short-term unsecured loans that offer a quick fix during emergencies. Instant loans have gained popularity over the years because, unlike traditional loans, they are easily accessible. You don’t need to go through the long and invasive credit checks to get approved for funding. The application process is simplified and with instant approvals, you can get your funds as soon as the next business day.

Once you meet the requirements of the lender, he will approve your loan request, take you through the terms of the loans, and if you agree to their conditions, you append your signature and the funds are disbursed to your bank account.

Who qualifies for instant loans?

Instant-loansTo qualify for instant funding, you have to:

  •    Be at least 18 years old.
  •    Be a permanent resident of the state you are borrowing from.
  •    Have active contact details. You have to produce a working phone number and email address.
  •    Have a source of income, whether it’s from employment or business.

It is important to note that eligibility for these loans vary from lender to lender. The loan amounts you can borrow largely depend on your monthly income and lenders in most cases are not interested in your credit history.

Benefits of instant loans

Payday loans are a blessing during emergencies because:

  •    They have fast approval time – unlike a low-interest personal loan from a traditional bank that takes a long time to be approved, these loans are approved immediately.
  •    No credit checks – you don’t have to worry about your poor credit history. Lenders don’t perform credit checks and will base your eligibility for a loan on your current capacity to pay back the loan and not your past credit reports.
  •    No collateral – these are unsecured loans so you don’t have to give up your property as security to receive funding.
  •    No restrictions on use – you can use the loan for anything. You are under no obligation to explain to your lender what you intend to use the money on.

Disadvantages

Despite the numerous benefits of payday loans, these loans can become a debt trap that is difficult to get out of. The high interest and APR charged on these loans makes them expensive and worth avoiding.

Imagine an average borrower who depends entirely on their paycheck. Taking off a lump sum amount from their salary will force them to either borrow again or roll over their loans into a new one.  

Rolling over their loans comes with extra charges that entrap them in a cycle of debt. It is, therefore, important to explore other funding options instead of depending on instant loans.

Are instant loans a good solution to your financial problems?

Instant loans/ cash advance/ payday loans are good for emergencies only. They offer short-term financial solutions when you are stuck and can’t wait for your payday. Using them as a long term solution can lead you to more debt.

Since these loans are unsecured, the interest rate and APR charged are usually very high. The loans provided range from $500 – $1000 or higher depending on the lender. The interest rate charged is usually 15% for every $100. If you have to pay the principal,  interest and all the associated fees from your paycheck, it leaves you with nothing to survive on and this will force you to borrow again to get by.

They are, therefore, not a good solution to your financial problems.

What you need to consider before taking out instant loans

  •    Shop around for borrowers who offer affordable rates. It’ll make your loan cheaper.
  •    Borrow what you are comfortable paying back.
  •    Explore other options of financing instead of depending entirely on payday loans.

Instead of worrying about getting cheap lenders, let us ease your pain by matching you with trusted lenders who are licensed by the Department of Business oversight who follows the borrowing regulations pursuant to the California financial laws.

We also keep your information confidential through our privacy policy that prevents your information from leaking to spammers. When you find yourself in financial distress, think of us as a way out. We are here to help you with your funding needs. Fill out our loan application forms online today and get your online loan instantly.

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