There was a time when talk of getting instant cash loans crossed dangerously into the realm of fantasy. That was the time when traditional lenders, like banks, still ruled with an iron fist and willingly set tough criteria from which they could make the best profits. But the arrival of the internet, and specifically online lenders, has change the situation completely.
Today, it is possible for some lenders to advertise guaranteed loan approval, but how is this possible? Well, the fact is that instant approvals are a reality and a guaranteed approval is too. This is because the approval process has been cut down to a mere few seconds, thanks principally to computer technology.
However, there are still criteria to meet, basic though they might be. And even if bad credit histories are ignored through the adoption of no credit check processes, the likelihood of securing a cash advance loan is extremely high.
Advantages of Instant Loans
Getting instant cash loans has real advantages, especially when time is of the essence and a financial emergency needs to be dealt with. Perhaps a medical bill needs to be paid, or a late mortgage payment reminder. Access to the required funds then, is essential.
And if there are fears over missing loan repayments, they are misplaced. The single repayment is automatically withdrawn from the bank account of the borrower, so there is no risk of defaulting on the loan. And of course, with guaranteed loan approval none of the concerns over application rejection can be put aside.
And since the approval on the cash advance loan takes only one hour, a 10 am application can see cash in the bank by 2 pm. It means that a financial emergency really can be dealt with by the end of the day.
Understanding the Costs
What should be considered carefully before starting the application process, however, is the cost of instant cash loans. The relief securing much-needed funds comes with considerable pressure to clear the same debt in as short a period of time as 14 days. Also, the interest rates that are charged are typically very high.
It is not unusual, for example, for rates between 20% and 35% to be charged. Lenders claim this is acceptable, partly because they are vulnerable without credit checks, and partly because the speed of approval is an advantage for borrowers. Of course, having guaranteed loan approval is essential in an emergency, so the cost can be worth it.
Still, the repayments can cause havoc with the rest of the financial budget. For example, at 30% a ,500 cash advance loan would cost ,950 to clear. When that much is take from one paycheck, it leaves very little over to meet the regular bills.
Choosing an Online Lender
Finding the best loan deal does require searching online. This is essential when getting instant cash loans, especially if the most affordable is to be found. Thankfully, the job is made simpler by comparison websites, which clearly lists and compares terms relating to interest, fees and other charges.
What should never be taken for granted is the promise of guaranteed loan approval. It is important not to be distracted by this feature, and look at the interest rates charged. Make sure to carefully calculated the figures and that they fit into your budget. But still, a cash advance loan is the fastest to access anywhere, so in times of financial emergencies, they are still the best option.