An instant loan can be a quick and sound option for you if you are looking to meet some sudden financial circumstances such as car repair cost, wedding expenses or to pay monthly mortgage installment etc. By applying for a personal quick loan, you can get a reasonable amount of cash without high interest rates and a good credit history. These loans are offered for short time periods that an individual can use to cover different unexpected emergencies without getting out of budget.
As instant loans have a bright side and plenty of advantages for individuals, they have a not bright side too that you must determine before applying for one. Below we have revealed pros and cons of instant loans that everyone should know to make fertile decisions.
Pros of applying for an instant Loan
- Online availability
The brighter side of instant loans is that you can easily get cash within 24 hours even without leaving your bed for a lender. You can search, find and apply for quick personal loans online. Most of the people also know such loans as cash in 24 hours. When you are in search of loan within the range of $100 to $2000, you can easily get one swiftly on internet. A lot of loan agencies and lenders are on the web with variety of instant loans and you can choose one as per your needs and requirements.
- Faster to get Cash
Instant loans are faster than any other type of personal loans because they don’t want you to provide any collateral to get loan. All you will need to get online cash within 24 hours is a good credit scoring. In this way, you can get quick cash to meet all your sudden financial needs. You can also schedule payments for an approved instant loan by using your bank account. It enables you to pay the loan off conveniently and easily without missing any single payment. However, timeframe for applying and getting an instant loan approved may vary from company to company that you can check before applying.
- Improve your Credit Ratings
Applying for an instant loan can be a great idea for you if you want to improve your credit rating/score right after bankruptcy or to apply for a mortgage loan. When you borrow money in the form of quick cash loan and pay it back accordingly, you can show the giant lenders that you are responsible to pay your loan back as agreed. Hence, you will need to pay the loan amount back before the due date in order to enjoy good credit ratings.
Cons of applying for an instant Loan
- Higher Interest Rates
Higher interest rate is one of the reasons you shouldn’t apply for an instant loans because it can cost you much more than your expectations. For example, when you borrow $100 as an instant loan, you may need to return it around $115 to $130 and an additional amount of $15 or $30 cab disturb your overall budget plan. And if you don’t pay the money at the right time, late fee will also be added to the total.
- Slower Process
Most of the loan providers may ask you to send required documents via fax, which can make the process of applying and getting loan slower. In case of no access to fax machine at the time, you will need to find a fax service in your town to complete the loan process. However, you can get rid of the situation by selecting a lender that performs identity check itself without asking you to send different personal documents.
- Little Amount of Cash Offered
As it is mentioned in recent lines that instant loans are offered for short time periods with little amount of cash, it will not be the right choice for you if you need more money to meet your financial needs. Instant loan providers want you to pay the loan back quickly, that’s why they lend a short amount of money to you that can easily paid by you. They usually provide instant loan in a ration with money you earn each month so you can repay the loan conveniently without getting out of money at the end of month.