Are Instant Cash Loans the Future of Lending?

February 7, 2020

Sometimes, life is precarious and expensive. Having the money to handle these situations can be tough especially considering 27% of adults need help handling an unexpected $400 expense. While it’s prudent to work on your emergency fund, rainy day money, and set aside cash for your traveling goals or to finance your fun, have you explored all your options for being financially prepared?

Today, we’re taking a closer look at instant loans as an option for moments of quick financial hardships and how they could help you when you’re in a pickle.

What is an instant loan?

Instant loans or fast personal loans are loans that are usually for a short-term period of borrowing. They can be used for personal needs including moving expenses, medical emergencies, repairs to your home or vehicle, etc. These funds are often provided by online lenders who can approve your loan in a short timeframe—sometimes same-day or next-day approval. As with most other loans provided by lending companies, they are given to approved persons. Approval is usually dependant upon credit score, income, existing debt, etc.

Instant loans are not payday loans but can sometimes still have high-interest rates for borrowers. With this in mind, the risk can be a bit higher and you’ll want to make sure you pay special attention to how much you’re borrowing, the time period of the payback, and the interest rate you’re agreeing to.

What is the process for applying for instant loans?

Typically, those seeking instant loans can apply online or in-person at their desired loan institution. During this application process, you’ll give the lender your personal information like home address, social security number, banking institution information, and more depending on what’s required from your lender.  The lender will likely run a credit check and then reach out to you with information about how much you’ve qualified for, your interest rate, and the period to pay back the loan.

Instant loans tend to be smaller amounts so you won’t want to bank on this sum to pay for larger fees and the period of the loan could be as short as a few weeks, too. The main thing to keep in mind is that you must be vigilant when taking out these sums. Finally, the word “instant” might need to be taken with a grain of salt. Some institutions can send you the money within a few hours while others may take a few days for the funds to kick in. It all depends on the lender you select as your provider.

Instant loan advantages

Considering some of the risks involved, you may be wondering, why choose an instant loan over other types of loans?

Here are some reasons to consider that might apply to you:

• Convenience — You can apply for instant loans without having to leave your house. If your financial life is really stressing you out, this can help relieve some of the pressures you may be going through.
• Speed — Depending on what your loan is for, the approval process can take some time. If you’re looking for a smaller amount within a fast time period, this may be a quick solution for you.
• Bad credit — If your credit score has taken a hit, it’s not unlikely that you’re looking for more avenues to get a short, financial break. An instant loan could help provide some cushion as you look for more stable options.

So, are instant cash loans the future?

The answer to this question is personal and depends on where you’re at in your financial life. Speaking logistically, instant cash loans are great because of their ease and ready-to-use quality! Instant cash loans may be the future, but they’re definitely the present, too, as more loan providers aim to make their services more accessible to borrowers.

As you decide what type of loan is the best option for you, you’ll want to make sure you can uphold the agreement you enter into with your loan provider. Be sure your provider is willing to talk through your options with you and explain the loan service in a way you can remember. Whatever you do, make sure it works best for you!

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Finances in a pickle? No problem! Illinois lending is your way out of payday loans and a better way to borrow. Apply online today with our easy application!