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.
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.
To qualify for instant funding, you have to:
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.
Payday loans are a blessing during emergencies because:
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.
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.
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.