Instant Payday Loans
Instant payday loans are quick cash loans available inside a short application process time frame. The term “instant” can mean different things to different lenders. The applicant may also interpret the term “instant” differently than the lender intends it to mean.
Instant payday loans are intended to cover an unexpected expense before the next paycheck arrives. Instant payday loans are meant to be a temporary solution to an occasional problem and not a long-term solution to chronic financial problems. If the borrower finds they are using instant payday loans on a regular basis, it is a sign of deeper money management problems than trying to cover an unexpected expense once in a while.
To qualify for instant payday loans, the applicant must be 18 years old or older, be employed with a steady income, meeting a minimum monthly salary and have an electronically transfer friendly bank account. The first time an applicant applies for an instant payday loan, the lender will require the applicant to provide documented evidence of employment, salary and banking.
Once the application has been approved, the funds will be available in a short time frame and transferred electronically to the applicant’s bank account. In the approval process, the first time is not so instant, but the next time the borrower applies for a loan, the lender has all the necessary information and the approval of the instant payday loans are a little more instant.
Instant payday loans come with high-interest rates. Some critics of the instant payday loans call it taking advantage of the financially vulnerable. Others see the high-interest rates as the price of quick access to cash. No matter how you look at it, the interest rate is higher than a standard loan at a bank or credit union. The rates vary from lender to lender, but are typically 15 to 35%. That works out to $15 to $35 for every hundred dollars borrowed. Before taking an advantage of instant payday loans, be sure to determine how much money that is needed and just borrow that amount of money. Crunch the numbers so you know just what the loan will cost. Take a look at the penalties and fees involved in the event the loan payment is late.
Lenders who offer instant payday loans do not perform credit checks when evaluating and approving instant payday loans, but most lenders do report late payments and default loans to the credit bureau, as well as, timely payments and successful management of the loans. Instant payday loans can help repair your less than good credit if paid back on time or further erode your credit if the loan is not paid back on time.
Instant payday loans can be used for any purpose. The lender does not even ask, or even care, how the loan will be used. The lender’s only interest is getting their money back in a timely manner. It is essential to pay instant payday loans back in a timely manner to avoid late fees and penalties. Those extra fees will only add to the cost of the loan and make an expensive loan even more expensive.