If you’re in financial difficulty, an instant loan could be a great choice.
These loans may be called “instant loans” by some lenders, but many of them are cash advances or payday loans. These loans have very poor terms and must meet certain eligibility requirements. Even if you have been approved, your money may not be available immediately. Find out loans that can offer instantly at GreenDayOnline.
These are seven things you need to know if you’re thinking of an instant loan.
Instant loans are something you need to be aware.
1. How instant loans work
There are two options available: either you can submit an online request, or you can go in person. The application will include details about the amount and repayment period. Lenders may need personal information such as income and debts, as well as information about your bank account and email address.
Once your application is approved, the lender will contact you within minutes to confirm and deposit funds into your bank account. Even if your application has been approved, funds might not be available for several days, or even weeks.
2. They may not occur immediately
While the loan application process can be quicker in person, it can take several hours or even days for a lender to approve your online application and deposit funds into your bank account.
You may not receive funds if you submit your application within a certain time frame. You might need to wait longer if the lender needs more information.
3. A very high interest rate could be charged
Many loans advertised as “instant loans”, can be cash advances, or payday loans. These loans have high APRs, and they are often mislabeled. According to the Consumer Financial Protection Bureau, payday loan lenders can charge as high as $15 per $100 borrowed depending on your state laws.
This equates to an average APR close to 400% for a two-week loan. There may be instant loans with higher fees. These fees can be as high as 900% to 700%.
4. These loans are typically small in size
This loan is not recommended if you need to finance major home renovations. These loans are often considered emergency loans and the maximum amount you can borrow is usually around several hundred dollars.
5. A short term loan may be available
Payday loans are known for their short terms. You may have to repay your payday loan in one to two weeks. The money will be available for repayment in a short time.
6. Bad credit may allow you to be approved
Instant loans are popular for people with poor credit. They don’t require that you check your credit score or credit report. Although this may sound appealing, it will not help you build credit if your payment history isn’t reported to the major credit bureaus.
7. Some companies might not lend in your area
In some states, payday loans aren’t allowed. Payday loan lenders in some states have stopped operating due to high fees and high interest rates. Many websites advertise instant loans. To get a quote, you can search for rates by entering your location.
What are my options?
Insta loans are often expensive and have very short terms. They should be avoided. You might be better looking for another alternative. These are some options.
- Bad credit people can get a personal loan –Poor credit borrowers may be eligible for personal loans from some lenders. For those who require more than a few hundred dollars to get by, personal loans may be an option.
- Payday alternative loans – These loans can be up to $2,000. To be eligible, you must have been a member of a credit union for no less than one month. A loan application fee of $20 is not required.
- A Cash advance on a credit card – If you have a credit card, you might be eligible to get a loan. Check the terms of your credit card. Cash advances might have higher APRs that standard purchases. Processing fees may also be charged by credit card issuers.
- Non-profit credit counseling agency – Credit counseling is a great way to plan your finances and manage your money. Ask about the repayment terms, as well as any fees.