Emergencies are part of life and when one comes knocking on your door, you definitely want the fastest means of raising cash instantly! Instant loans were established for this very purpose and they beat traditional loans by far.
Unlike traditional loans which can be a huge let-down when you want to take care of urgent financial burdens, and which are associated with tedious and lengthy processes, instant loans online are the best solution when you want to get cash in a matter of hours, or sometimes even minutes.
We’re going to explain to you what an instant loan is, how it works, its interest rates and other terms, its distinct characteristics, eligibility requirements, how to choose and apply for the best instant loans for your personal and business needs.
What Instant Loans Are
So, what are instant loans? And just how 'instant' are they?
Instant loans are super quick loans meant to help you get cash loans quickly to take care of emergencies that can’t wait! They’re the fastest means of getting money when you’re in a cash crunch and are associated with high-interest rates and fees. Lenders of instant loans work very swiftly and verify applications for instant loans and release the funds within hours, and sometimes even minutes.
These crazy funding speeds make them very attractive and popular among many borrowers. However, it’s always recommended that you understand all the terms and conditions of an instant loan before sending in your application.
Most instant loans are available online, which removes the hassle of commuting to a lender’s office, waiting, or even faxing. What's more, many instant loans come with no credit checks, no collateral, and in many instances, no minimum credit score requirements.
All you need to do is make your online application, submit any additional documentation needed, and wait for your loan to be approved and the cash to hit your account almost immediately. However, please note there is no guarantee of any lender approving your loan. You must fill out an application to see if you qualify. There is also no guarantee of any specific timeframe in which you will receive cash when you apply for an instant loan.
How an Instant Loan Works
The smooth and flawless operation of instant loans makes it efficient in providing flexible financing to consumers who need money quickly. But how does it work exactly? It's very simple. The first step is to choose the amount you feel will help take care of the financial issue that’s stressing you after some careful research, consideration, and analysis.
Then, you’ll go ahead to make your application for the online loan, ensuring that you answer all questions correctly and sufficiently. You’ll also want to make sure you attach in your application any additional documentation that may be required by the lender. Once you verify that you’ve completed your application, submit it and wait for their response. Many instant online loan lenders understand the urgency of your financial needs and should typically respond to you within minutes.
If everything checks out and you’re considered for the instant loan, getting the loan into your bank account should be the least of your worries as it happens almost immediately after you’re notified of your approval. In fact, online lenders work with automated systems that disburse cash into your account as they notify you of your approval but they also do manual checks and verifications before they can activate the automatic loan disbursement step.
Eligibility Requirements For Instant Loans
As you might expect, the eligibility requirements for instant loans are pretty basic, but are worth checking before exploring this option. They include:
-
Attaining a minimum age of 18 years
-
Proof of physical address
-
A copy of your ID
-
A valid email address
-
An active bank account
Some lenders may ask for proof of income, but most will almost have no interest in your credit history.
How to Apply For an Instant Loan
The process of applying for an instant loan is pretty simple. Follow these four steps and get your loan within minutes through Cash Payday Loans:
Step 1: Choose the instant loan amount you need and how long you intend to take to repay it. The limits may fall anywhere between $100 and $5,000 depending on the lender.
Step 2: Fill out our instant loan application form. Make sure that you accurately indicate your name and other personal information like your physical address, source of income, and employment status. In some instances, you may even have to include a list of your monthly expenses.
Step 3: Wait for your application to be approved and get loan offers. This should take minutes if everything is accurate and lenders will get back to you with offers based on their calculations for what the best amount for you is. You’ll then choose the lender you feel matches your needs and then they might invite you to sign a loan contract.
Step 4: Read the terms and conditions. Before signing the contract, be sure to understand all the lender’s terms and details of the agreement. Once you’re satisfied, sign the contract/loan agreement and return it to the lender. After that, you should receive the funds in your bank account in a short while.
How to Get an Instant Loan Fast with Bad Credit
Sometimes the process may be easy to work with and the lender may be willing to loan you, but, unfortunately, your credit may not be worth a second look! So what then? The good news is that you can also receive an instant loan even with a bad credit history. As long as you’re willing to compensate for it by having a higher interest, of course. Lenders always want to be sure that a loan will be repaid, and this is more true if you expect them to process your loan instantly!
Even when you’re lucky to get a lender who’s willing to work with you, you should be willing to wait longer than the average borrower. Many lenders might consider your case and allow you to negotiate interest terms and repayment periods especially when you can enlist the help of a co-signer.
This is someone who has a good credit history and is willing to sign the loan together with you and take responsibility for making payments. This can be a family member or a friend, so choose someone close to you and very willing to take on the risk.
Types of Instant Loans
Instant loans come in various "shapes and sizes" just like many things in life, and it’s worthwhile to take the time to understand all the options before going for the application. Some common instant loan options are:
-
Instant online loans. These are the most common forms of instant loans and are swift because they require you to do everything in one place. Many lenders of instant online loans make no credit checks, require no collateral, and have no minimum credit score requirements. They also guarantee instant disbursements of funds on approval.
-
Instant Payday Loans. This is one of the most popular ways of raising money because it bridges the gap between paychecks. Instant online payday loans are also easy to get approved for and have very few requirements. Lastly, if you submit your application early enough in the day, there’s a high chance that you’ll get the cash on the same day.
-
Instant installment loans. These loans usually offer lenders more money than their paychecks. Just like all other types of instant loans, these loans guarantee instant approval decisions and quick funding. They also allow for longer repayment periods and have no credit score requirements, which increases their processing speed! They’re most suited for borrowers who have bad credit and prefer to pay off the loan in scheduled installments as opposed to lump sum amounts.
Frequently Asked Questions (FAQs) About Instant Loans
What can an instant loan be used for?
Instant loans tend to be flexible and can be used to take care of pretty much any emergency. While you’re the best judge of which emergency can wait and which can’t, it’s recommended that you use the loan for a reason that’s worth the interest costs. Some common acceptable reasons include unforeseen expenses such as moving expenses, medical bills, wedding expenses, vehicle repairs, etc. It’s not recommended to take out a loan for expenses such as higher education, or a down payment for a home as loans in this case aren’t a reliable long-term source of money for such needs.
Can I get an instant loan without any credit checks?
In some cases, yes. See, lenders always perform checks on the borrower as part of their decision-making process to help them know how likely you are to repay without problems. There are two categories of credit checks, soft and hard checks. Soft checks (which are the most commonly used checks by online lenders) tend to have no critical impact on how likely you are to have your loan request approved. Hard checks do have a big impact as lenders pull your credit information from credit bureau reports. Generally, most lenders prefer borrowers with a good credit history, but some make room for lenders with bad ones or who don’t have any credit history at all. In these cases, lenders will take additional measures to reduce the risk of defaulting costs, such as increasing the interest and reducing the repayment period if your credit is bad. They may also set lower limits for borrowers with no credit history.
Why don’t most online instant loan lenders bother with serious hard credit checks for their loans?
Because they have other key factors like your income source, expenses, and others that help them know how easy it’s going to be for you to repay a loan. Credit checks are good and they go a long way in helping lenders know the creditworthiness of a borrower, especially for a short term loan, but many lenders know that there are borrowers who have bad credit who may be good borrowers who are still worth loaning.
Are instant loans processed automatically?
There is no such thing as an automatic loan process. Even lenders who have automated technology to approve loans need some minutes to verify an application. With that said, it’s possible to get your loan within minutes or hours or wait for a few business days if some issues arise with your application.
How can I increase my chances of being approved for an instant loan?
There’s really no standard formula other than the old-age wisdom of due diligence. Consider the amount you can repay comfortably, and be sure to provide accurate information during your application. Ensure you also have all the requirements that the type of loan you want requires as you apply.
How much is the limit for an instant loan?
The borrowing limit varies from one lender to another, but you should be able to borrow anywhere between $100 and $5000. Also, depending on the type of instant loan you’re looking to get, and whether you are looking to get the cash loan the same day or not, you may be able to get more than that. That’s why you must take your time to make sure you meet most lenders’ general requirements as that increases your odds of getting a higher loan limit. Also, sending your loan application to many lenders can help increase your options and get lucky enough to receive an offer with a high limit. Keep in mind, also, that the state you’re in plays a big role in how much you can get from an instant loan if it’s allowed.
Which states don’t allow people to take online instant loans?
Several states have completely closed out their residents from instant loans for various reasons while other states heavily restrict the operations of instant loan lenders. The states in which you can’t access instant loans include Maryland, Pennsylvania, Vermont, New York, South Dakota, New Hampshire, New Jersey, Arkansas, Massachusetts, the District of Columbia, West Virginia, Georgia, North Carolina, Connecticut, Colorado, and Montana.
Can I get approved for an instant loan with no job?
Yes. So long as you have a source of income and you can prove it, most lenders will advance your credit. It also helps if your source of income brings you a decent amount. This proves to the lenders that you can afford to take care of your critical expenditure and pay the loan installments effortlessly.
Will an instant loan harm my credit score?
It depends on how you handle the loan and if the lender you choose reports their transactions to credit bureaus. If your lender sends their loan reports with their clients to credit bureaus, chances are how good or bad you repay the loan will reflect on your credit score after the lender sends your information. Credit bureaus take it up, add it to your credit information, and update your overall credit score.
Can I repay my instant loan in installments?
Yes. Although many lenders prefer lump sum payments, a good number of them will also allow you to pay in installments if you pick an installment loan. These amounts are commonly known as annuities because they remain fixed throughout the repayment period and get paid in constant time segments such as weekly, fortnightly, or monthly. Annuities are dependent on when you receive your cheque or income.
How much will I pay in interest rates for an instant loan?
This is perhaps the most variable element of any loan. For instant cash advances and online loans, the interest rates fall anywhere between 5.99% to 600% depending on your creditworthiness as determined by your lender. The better your credit history, the lower the interest rate you’ll probably pay. The type of loan you pick also matters. With payday loans, the interest rate and Annual Percentage Rate are often higher than those of an installment loan. A co-signer or signatory can also reduce your expected interest rates, so use one if your credit history isn’t all that appealing to lenders.
What is an Annual Percentage Rate?
Also called APR, the Annual Percentage Rate for a loan is the expected yearly interest that lenders demand borrowers to pay for the loans they get.
What are the most effective alternatives for an instant loan?
Considering the fact that an instant loan comes with an interest rate, the best alternative for that would be a way to get money without paying it back with interest. That being said, asking for financial help from your friends, family, and relatives, approaching non-profit organizations that offer donations, using credit unions, and visiting local spiritual and religious institutions that are known to help community members are great options. You can also consider giving up for sale some of the things in the house that you barely use.
What charges should I expect on my instant cash loan?
To push your loan application to the next step, many lenders will charge you origination fees for processing the loan. Moreover, in case you fail to pay back your loan on the due date, more late charges will be added. Plus, if you decide to request your lender to push your repayment date when you fear you may run late on your repayment, the lender may agree to do that at some cost.
What are the repayment methods for instant loans?
It all depends on what the lender whose offer you picked prefers and it’ll be clearly stated on your loan offer and loan agreement. Some lenders prefer you to permit them to send your bank a request to take out an amount equal to the due loan amount agreed on the due date. Others will want you to allow them to get into your account and withdraw their chosen amount at their chosen date. These are forms of automatic payments and setting up the automatic payments is a good way to make sure you never fail to make your repayments on the day they’re due.
Is a bank account necessary for me to get an instant loan?
Your bank account will allow you to receive and repay the loan you’ll get from lenders and it also helps lenders assess your financial situation together with your income and expenses through your bank statements.
What are the things I should remember when working with instant online loans?
First, make sure you know exactly how much you want from an instant loan before you send in your application so that when loan offers come your way, you don’t go for more than you can repay simply because lenders are willing to give you a higher limit. Doing that will help protect you from taking more than you need which may lead to bad debts. Second, take time to compare the offers you get from lenders and pick the one that favors you the most in terms of interest rates, the date you’ll receive your paycheck, the loan’s repayment date, and the time given between taking the loan and repaying it.
What are online lending networks?
These are platforms that allow borrowers to send one loan application to multiple lenders almost instantly. They connect borrowers with lenders and help them get loans faster. Cash Payday Loans is an example of a lending network that’s more effective than applying to one lender after the other manually. You spend less time and effort, and increase your odds of getting an online loan faster.
Do I pay for using the services of a lending network?
Some lending networks may charge but others like Cash Payday Loans don’t. We let you access every feature of the platform for free and negotiate loan offers with lenders with relative ease. Cash Payday Loans benefits after you’ve successfully been approved for a loan and have received it in your account. Lenders will compensate us for connecting you with them and the compensation won’t have you repay more or receive a lower amount than you wanted. Meaning, the compensation doesn’t affect the borrower in any way.
What happens in the unfortunate event that I can’t pay back the loan?
Good planning on how you’re going to repay the loan is essential to help you get in the lenders’ good books so that when you need them again in the future, they’ll be confident enough to loan you again. That means you should have several ideas and options on how you’re going to get the money to repay your loan so that you don’t miss any payments. If all options fail, you should talk to your lender and let them know your situation and you can work out a solution together. Some provide loan repayment extensions at an additional charge.
Where can I get more information about instant loans and other types of online loans?
Our Frequently Asked Questions (FAQS) page covers many other diverse questions about instant payday loans and other loan options at great length and you can get detailed answers to your questions there.
What are the specific interest rates for each type of instant loan mentioned above?
Every loan has a unique interest rate. We recommend looking at our Terms and Rates page to get more information about each type of loan and all the information you need including the individual interest rates.