It sounds impossible to get a loan instantly, or if not impossible, suspicious. How can any company loan instant loans to people with bad credit or without extensive document provision? Wouldn’t the company go under if the loans are not paid back. Online instant cash loans are a formal and an informal process. Formally, institutions are set up which legally loan people money. Informally, loan sharks loan money in a suspicious manner with exorbitant interest rates to people.
Basically, companies give out small loans to people with a higher than regular interest rate or a flat loan fee. This loan has to be returned after a short duration, sometimes at the next payday, with the loan fee or interest. Short-term instant loans do not hold a person’s car or house as a guarantee and thus, you do not lose your valuables in case of default. The repayments can be done in intervals, depending on how much the borrower can afford. But with the passage of time, the interest rate rises. Before borrowing money, you should calculate the amount of repayments it will take and whether you can afford to pay back the loan with a high loan fee/ interest. Inability to pay back ruins a person’s credit and can result in a lawsuit, meanwhile, the interest will keep adding up.
Online Instant Cash Loans
While typical loans may take weeks to be processed, instant cash loan services can lend money in even as less as thirty minutes. Online services have increased efficiency and reduced time even more. Not only can you get a loan, tracking it becomes much easier through the online loan services. You can apply any time of the day. There is rarely a credit check and even with a bad credit, you can get loans. Decisions take a moment to be made and the loan is processed instantaneously. If you are approved, the money is immediately transferred to your account or upto one business day.
The issues with Instant Cash Loans
Getting instant loans is not a long term financial solution. Considering the high fee rates and interest rates, the borrower is likely to head into a potential debt trap in case of default.
Since the lenders are lending money without any checks in place, there is a likelihood that the lenders are of bad repute. This means in case of default, they can send bounty hunters to collect the accumulated tax. With such convenience in fiscal matters, there always is a caveat. It is better to use Instant Cash Loan services which require at least some forms of checks.
Alternatives to Instant Cash Loans
It is understandable that an urgent need for money can arise. In such situations, there are always alternatives available.
- Family and Friends
Turn to your family and friends. These are the people who trust you and are most likely to help you out in a pinch. However, be sure to repay on time and not cause inconvenience to your loved ones and unnecessary bad blood.
- Personal Loans
Some banks offer same-day loans to their existing customers. This eliminates the danger of a shady lender and has the convenience of an instant loan. However, this service might not be readily available in all banks, and if available, would require in-person visit to the bank and submission of hard copy documents.
- Credit Card Advance
You can withdraw money from a credit card in the form of a cash advance. It is instant and safe, however, it has a high interest rate and a cash advance fee. You also have to check beforehand, whether your card is permitted to withdraw cash advance.