In this post, we’ll be taking a look at what instant cash loans actually are, what’s involved, and to help you determine whether an instant cash loan is the right type of finance for your current needs and situation.
Source: nextviewloans.com
Contents
How Much Can You Borrow?
The amount will vary from company to company, but generally, these are small loans to cover things like emergencies, or just to tide you over financially until your next payday.
As an example, Sunshine Loans offers instant cash loans up to $2000, and you can borrow as little as $200.
Other finance companies might offer up to $5k, it just depends. The amount you need to borrow will dictate which instant cash loan company is the right fit for you, along with some other criteria.
This type of loan isn’t the kind of loan where you’re looking to pay it off long term, or you want to make a major purchase. If you want to buy a new car or go on an overseas trip, you’ll need to look into car loans or personal loans.
Instant Approval Is a Major Advantage of Instant Cash Loans!
When you apply for a home loan, car finance or a personal loan, sometimes the approval process can take weeks. While that might be acceptable for those kinds of loans, when you need a small cash loan fast, you likely don’t have weeks of jumping through hoops to wait for the approval.
You need the cash fast. You need it now.
That’s another huge advantage of an instant cash loan. The approval process is sped up to accommodate people who just can’t wait. Maybe your rent is due, yet payday is still days away?
An instant cash loan can prove to be a saviour in situations like this. If all is good with your application and you do it online, quite often you’ll receive same day approval of your loan. Once that happens, the money will be transferred to your designated account instantly.
Source: PinterestWill There Be a Credit Check?
A background credit check is standard procedure when applying for finance of any kind. After all, the lender needs to know that you’re likely to pay the money back and on time.
Some financiers claim they don’t do credit checks, but generally speaking, even those lenders who offer instant cash loans will still run a credit check on you. However, because the loan amounts are usually considerably smaller than more conventional finance, it’s not as critical as a credit check would be if you were applying for a $30,000 personal loan, for example.
Will Bad Credit Spell the End for An Instant Cash Loan?
Not necessarily. Each lender will have their own set of rules and criteria for lending, but generally even people whose credit history is not exactly exemplary can still get approval for a smaller fast loan.
Many companies that offer this sort of loan will give borrowers a fair go, even if their credit record hasn’t been great in the past.
In fact, successfully fulfilling your instant cash loan obligations can be a step in the right direction for improving your credit rating.
Things that will be taken into consideration are your current income and whether it looks like you can readily afford to pay back the loan amount in the allotted timeframe.
Source: microfinancesaving.com
What Are the Likely Costs?
Again, this depends on the lender. Regardless of what the costs might be, what you want to look for when applying to a lender for an instant loan is that there are no hidden fees. You need transparency and a reputable lender will give you that.
Usually, there is an establishment fee which becomes a part of the loan amount, as well as monthly loan fees, usually only a very small percentage of the repayment amount.
Are Interest Rates Higher Than Regular Loans?
They can be, but it really varies from lender to lender. Generally speaking, with smaller and faster loans of this nature you’ll usually pay a little more in interest, but that’s offset with a fast approval time and less chance of bad credit affecting the loan application approval.
Source: Inside Catholic
