Speed is essential when dealing with financial emergencies, but the task can become more complicated for bad credit borrowers. Thankfully securing instant personal loans with bad credit is no problem.
Financial emergencies have become more common these days as we continue to reel from the effects of the economic crises that have arisen over the past 6 years. But while waiting a day or two for a general loan is okay, being able to secure instant personal loans with bad credit is a must when dealing with an emergency.
The good news is that it is possible to get your hands on the vital cash required in only a few hours. But there are conditions and criteria that must be met first, as well as some compromises to accept. The bottom line is that in return for instant approval, the cost will increase.
Lenders who are willing to grant loans to bad credit borrowers so quickly are able to do so because they grant approval with no credit checks. But what are the other key factors that should be noted before submitting an application for an instant personal loan?
Understanding What Instant Actually Means
The idea that a loan is approved instantly seems a little far-fetched, and strictly speaking the approval is not without an approval process. But anyone applying for instant personal loans with bad credit via the internet need only wait a few minutes.
This is down to two reasons. First of all, the approval process is streamlined thanks to the fact the process grants approval with no credit check. This means the time needed to check a credit history does not apply, thereby removing a period of several hours a traditional lender would normally require.
Secondly, the online application form is processed electronically, so it takes only seconds for the computer program to confirm such issues as affordability. So, within just a minute or two, an email confirming or rejecting the instant personal loan may be received. The funds can then be sent to your bank account directly, giving access in between 2 and 5 hours.
Negative Aspects Of An Instant Loan
While it is true that getting instant loan approval is very good news for those facing a financial emergency, there are some compromises that need to be accepted too. These negative aspects mean that getting instant personal loans with bad credit can be more expensive than expected.
For example, the interest rate charged on these kinds of loans is higher than usual, in some cases by about 1%. The loan limit is also quite low, with many online lenders offering instant loan approval with no credit check on sums of no more than $10,000.
Of course, getting the best possible terms is dependent on who the lender is and what type of loan is applied for. And some instant personal loans are more certain to be secured than others.
Considering Payday Loans
The most common loan option for those seeking instant personal loans with bad credit is a payday loan. These are popular mainly because approval is practically guaranteed, so long as the size of the income is large enough.
These loans are granted against an upcoming paycheck, and with repayment in full in as short a term as 30 days, and taken directly from your bank account on payday, the certainty of payment is high. So, granting approval with no credit check makes sense.
However, a payday loan is limited to just $1,500, and can be as small as $100. It is also a very expensive loan, with interest rates as high as 30%. It means that an instant personal loan of $1,500 would need $1,950 to clear it, which is a large sum to take from a single paycheck.