Instant Loans for Emergency Cash
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What can you do if you have an emergency that requires cash, such as a car repair or a utility shutoff notice, and you don't have enough cash? If it's something small, you can probably borrow from someone you know. But what if you need a few hundred dollars? Instant loans can be a blessing in such circumstances. Some people also use them to pay bills before they are late to keep their credit score from taking a hit.
You can get an instant loan on the Internet, over the phone, or at a lending store. They are essentially loans that are approved quickly, sometimes in hours, as opposed to waiting weeks for a traditional loan to be approved. Your credit is either not checked or only a cursory review is done, but you must have verifiable income. Lenders do need some kind of assurance that you can pay them back.
Types of Instant Loans
There are three common types of loans that are approved instantly:
Payday Loan: These are ideal if you have a bad credit score as your credit is not checked. You must have proof of employment and a bank account as well as other information that will be required such as your SSN. The loan is given to you and on a specified date (usually within weeks), the loan is repaid in full either by a postdated check or bank draft. The APR on these loans averages 300%.
Unsecured Personal Loan: Unsecured personal loans require a credit check so they take longer to approve. The loan terms are longer (up to 10 years) and the interest rates are lower than payday loans.
Secured Loans: Your credit may or may not be checked for this type of loan, but collateral is required. This could mean your car, home, etc. depending on the amount and repayment length of the loan.
Though an instant loan can save the day, it can also harm your credit if not repaid on schedule. Be sure to consider the other options available to you before applying for an instant loan because the interest rates are very high For this reason, instant loans are usually best when used as a last resort in emergency situations.
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