Emergencies happen unexpectedly and sometimes it’s challenging to deal with the financial obligations that come with them. When dealing with an emergency, it is important to get that cash injection as fast as possible so things won’t get out of control. There are many loan options out there which you can choose from.
When dealing with an emergency, one type of short-term loans that usually stands out is an instant payday cash loan. In this article, we’ll look into what instant payday cash loan is, how it works, and what to consider when applying for one.
What is an instant payday cash loan?
Instant payday cash loans have proven to be one of the best answers for critical financial situations. Imagine you get sick and needs to be hospitalized. Or your car breaks down and you cannot even get to work. Now imagine that you apply for a loan with a traditional loan institution.
You cannot really afford to sit around for days or even weeks to wait for banks to approve your loan. You will have to go through a long application process, meet lots of requirements and if approved by the end of all this, you will have to wait some more before you get your cash. This is where instant payday cash loans can save the day for many borrowers.
With instant payday cash loans from a direct lender, you can get through the application process in a matter of minutes and then get your money within a few hours. With instant payday cash loans, you even have the option to submit your application online and receive your money without even having to leave your home.
How do instant payday loans work?
If you decide to apply for an instant payday cash loan, you will need to meet certain eligibility criteria to be approved for your loan. If you decide to apply at a lender’s on-ground store, the application process will take no more than a few minutes and you will be required to bring all necessary documents with you.
Instant payday cash loans also offer the option of online application. With both options, you will get an instant response on whether your application for the loan is approved or not. When applying for an instant payday cash loan at a physical store, you will get your money within an hour or two. If you apply for your loan online, it will usually take up to one business day for you to get your cash.
With an on-ground application, you will need to leave a physical check which the lending company can cash on the loan’s due date. When applying online, the amount will be debited automatically from your bank account on the loan’s due date.
Benefits of instant payday cash loans and how to compare lenders
If you are planning to apply for an instant payday cash loan and you are comparing different instant payday cash loan companies, you would want them to offer the following features:
Fast processing time
There are instant payday cash loan lending companies that give an instant payday loans approval which enable you to get your money on the day of the submission of your application. For other lending companies, it may take a few days to get you your money. If you need your money fast, find an instant payday cash loan lender that can get the job done and give you what you need as fast as possible.
Higher loan amount
The maximum loan amount a payday loan lender can give you is governed by the payday loan laws in each state. But there are lending companies who do not grant maximum loan amounts to first-time customers. These lenders are willing to give a borrower the maximum loan amount once he has shown that he is able to repay his loans on time.
Annual percentage rate and interest
The maximum interest a payday loan lender can charge is also limited by the loan laws regulation in each state. The bigger the competition between loan lending companies, the better terms you can expect. Try to find a lender who can give you the lowest interest rate.
Advantages and disadvantages of instant payday cash loans
Instant payday cash loan advantages
You can use the money for anything
Once you get your instant payday cash loan, how you want to spend the money is entirely up to you. Unlike with traditional lending institutions where you are required to provide a specific purpose for your loan, with instant payday cash loans, you are free to do whatever you want as long as it is not something illegal. You can use the money to pay outstanding bills, repair your car or plan for your wedding. The choice is yours.
Having a bad credit score is not a problem
Unlike with traditional loan lending institutions where having bad credit can almost kill your chances of getting the loan you desire, with instant payday cash loans, you can qualify for a loan even if your credit score is far from perfect. What instant payday cash loan lending companies are interested in is whether you have a steady source of income. As long as you are able to make your repayment on time, you will most probably get a loan.
You get your money really fast
If you are dealing with an emergency, applying for an instant payday cash loan is probably your best option to deal with it as fast as possible. When you apply for an instant payday cash loan, you get your cash within a few hours or by the next business day.
Instant payday cash loan disadvantages
You may have to pay higher fees
Compared to traditional loans, instant payday cash loans tend to charge a higher interest which also means higher loan fees. When taking out an instant payday cash loan, you have to be absolutely sure that you will be able to repay it on time. Otherwise, you risk getting yourself into more trouble and ultimately falling into a debt cycle.
It is only good as a short-term solution
When you take out an instant payday cash loan, you usually have to repay it by your next payday. If you are looking for a loan with longer terms, you may want to consider other options like an installment loan.
Trying to use multiple short-term payday loans instead of one installment loan can leave you stuck in a debt cycle and this is something you don’t want under any circumstances.
What to consider before applying for an instant payday cash loan?
When you are applying for an instant payday cash loan, make sure that the lending company can get you the funds as fast as you need it. When you are facing an emergency, time is really of the essence and in most cases, you can’t afford to wait more than a day to get your money.
Make sure you are really confident of repaying the payday loan by its due date. If you have any doubt about your ability to repay the loan on time, you may want to consider other borrowing options first.
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