If you do not have the time or the money for fast credit repair, applying for an instant loan might be a tempting option for you. Fast cash loans online or instant loans as they are commonly known are short term loans for which you do not require a credit check. Even though these loans sound incredibly convenient, you must learn everything about how they work, which includes the eligibility criteria before you apply for one. The loan amount which you can borrow if you do not have the funding for bad credit is usually very small, and these loans come with an extremely high interest rate. And also the names states fast cash loans online, they might not be fast at all!
If you are thinking about applying for an instant loan, following are some things you should keep in mind before you go ahead with it.
How Do Instant Loans Work?
Usually, you will be able to fill an online application form; however, this could be done in person as well. This application includes the amount of cash you need to borrow along with the method of repayment. The form might also ask from some personal information. This information varies from lender to lender; however; common question might be about your income and debts, you SSN, the bank account information, along with email address and phone number. Lenders typically respond to Fast cash loans online requests within minutes and also deposit the money to your account if you are approved. Yet, in some cases, even after you have been approved the transfer of payment might take two to three business days, sometimes even longer.
You Might Face a High Rate of Interest
Numerous loans that are marketed as Fast cash loans online are just cash advances known as payday loans. These loans are notorious because of the fees they charge. As per the CFPB, payday loan creditors usually charge a fee of approximately $15 for every $100 which has been loaned. This also depends on the terms of the loan along with the state laws. According to his, the APR equates to practically 400% when it comes to a two-week loan. Some instant loans might charge an even higher fee with APRs equivalent to approximately 700% to 800%.
They May Not Be Fast
Even though the Fast cash loans online process might be more straightforward and quicker, receiving the cash actually takes time. This period can range from a few hours to a few days, depending on how long it takes for the lender to make this decision and deposit the funds to your bank account. For instance, if you have applied today, you may not receive it until tomorrow, and you might have to wait even longer if the creditor requires additional information.
These Are Typically Very Small Loans
This is definitely not the kind of loan you apply for if you are looking for fast credit repair for a home renovation project. The cash amount which can be borrowed is meagre, around a few hundred dollars as this is usually taken as an emergency loan.
You Might Face a Short Loan Term
Short term loans are yet another trademark of Fast cash loans online. You might be asked to pay off your loan as soon as you receive your salary or within the first one or two weeks. This does not offer you a lot of time during which you can arrange for money in order to pay the loan back. We hope you use the above mentioned tips and save yourself a lot of valuable time as well as money!