The pros and cons of instant cash loans

The pros and cons of instant cash loans

There are many times when instant cash loans can come in handy. They are after all pretty convenient, fast, simple and easy to apply for. They usually have short turnarounds for approval and relatively short repayment periods. They’re much more convenient than traditional loans and typically require far less paperwork and result in much speedier service. This can be great when you’re on a time crunch and in desperate need of money. Before you jump into anything though, there are a few pros and cons you should consider first.

Pros of fast lending optionsA woman holding money from a cash loan.

There are a number of great benefits of fast lending options that make them an attractive option. They can be an excellent choice provided you weigh the pros up with the cons.

Simple application process

One of the things that make instant loans so great is that they generally come with a super quick and easy application process. You can typically apply for them online and usually the application process takes no more than just a few minutes to complete. Within business hours some lenders will accept and approve your instant cash loans on the same day provided you meet the criteria. Some will even provide automatic approval if your meet their checks.

Fast approval

Have you ever found yourself in the kind of situation where you needed to get access to funds really fast? If you need funds quickly then instant cash loans can be the perfect option. One of the things that make them so popular is the quick approval process. Lenders usually require much less information and will make a decision much faster than a traditional lender. The whole points of instant cash loans is that they need to be faster and more streamlined than larger, traditional loans.

Good for those with bad credit

Traditional lenders often have very stringent lending rules in place and may require and almost perfect credit score which can make it very difficult for people to get access to the funds that they need. Instant cash loans on the other hand often don’t have as many hoops and will often lend to people even if they had some issues in the past and have had bad credit in the past. Depending on how much you are applying for you may need to put up an asset as equity but most often you’ll find that instant cash loans are unsecured and there is nothing required as collateral.

Receive funds straight away

Many people love instant cash loans because there’s no waiting around for funds once the loan has been approved. Depending on who you bank with you’ll usually find that the cash is delivered immediately into your bank account straight after approval. For most lenders who provide same-day approval, this could mean that you have access to the money you need is a single day.

Cons of instant cash loansMoney on a desk with charts from an instant cash loan.

There are a number of drawbacks that you should think about carefully before entering into an agreement with a lender.

High-interest rates

Most short-term lending options will come with high interest rates and fees because of the short lending period.

Impact on your credit file

Some people don’t realise because of the short-term nature of these arrangements that they are still credit and will still impact on your credit score.

What to consider

You need to think about whether or not you will have the ability to comfortably repay the funds that you borrow. Avoid getting yourself into a bad position with late fees and interest that you can’t afford to pay.