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What is an instant cash loan? When to avail one

Getting an instant cash loan is a great way of dealing with emergency scenarios. If you need some extra cash to be on a safe side, then instant cash can be your pick. The thing with an urgent cash requirement is that it can arrive at the worst possible time and for people earning from daily wages, can get in serious trouble. Getting an instant loan can be a short term solution for financial conditions that you encounter. Instant cash loans are sometimes also known as payday loans. Today we are going to share with you what exactly instant cash loans are, how can you apply for one and when you need to avail it.

Explaining An Instant Cash Loan

An instant loan is a high interest, short term loan which you can be applied for in case of financial emergencies and is usually returned with your next month’s salary. Instant cash or payday loans work differently than other general loans. The amount you can borrow from an instant cash loan is relatively low, so you can’t plan to renovate your home or carry out any other expensive renovation project with this amount of cash. Also, instant cash loans have a very high-interest rate, for example, if you take out an instant loan of 100 dollars, be prepared to pay around 15 dollars as interest on every 100 dollar loan amount. When it comes to an instant loan, your credit history will not matter to the provider and you will be eligible to apply for it in any case.

How They Work And How To Apply

For applying for an instant cash loan, you will be required to fill out a form online or you can do it in person. The application will include the amount of cash you want to borrow from the lender and at what time you are going to pay it back. You will also need to write down your details, like your job salary and whatever debt you may be carrying, but, that varies from lender to lender. You will have to provide your financial details like bank account number, bank swift code or branch code. The lender is usually quick in response and does so in a few minutes. The cash is then transferred to your provided bank account. However, even after being approved, it may not be as instant as it says. It may take more than 2 business days for the funds to reach your bank account. Also, if you are submitting your application midday or after that, you might not get to know whether you were approved or not until the next business day. For example, if you submit your application 1 hour before closing time on a Friday, you will get a response on Monday and will have to wait two days. Since now you know how an instant cash loan works, we are going to tell you some cases in which you can decide to avail one. Some of these cases are listed below:

  • You Were Not Eligible For A Regular Bank Loan

A financial problem can happen with anyone and sometimes people look towards banks to get small loans to pay off their mortgages and rent. Usually, when you turn to banks, they ask for several things and present you with a huge amount of paperwork that you need to fill out before you are even considered for the loan. Also, they look at the fact that whether you have a good credit history or not. People carrying debt and bad credit history are usually denied a loan from a conventional bank. When this happens, people usually turn to instant cash loans, as the lender doesn’t require your credit history and the money is in your hands in a matter of minutes.

  • Medical Emergencies or Automotive Expenses

It is simply impossible for you to know when such an emergency is going to happen, so taking out a loan from a bank is impossible as you are not a fortune-teller. Things like medical emergencies, which may include car accidents or diseases, can cost you a huge amount of money which you might not have at hand. If something like this happens, applying for an instant cash loan is the best possible solution for you, if you do not have anyone else you can borrow money from. Also, if in case of an accident, your car may also get damaged and you need to repair that as well. For people who do not have car insurance, it can take a huge toll on them financially when they get their car repaired. In this case of an emergency, you can always take out an instant cash loan. Sure, you will have to pay a huge amount of interest on every 100 dollar loan, but, having money is better than having none at all.

Covering Everyday Bills

According to a study done in America, 69% of the people who take out instant cash loans are using it to pay for every day recurring expenses. This usually includes rent, utility bills, credit card payment, or grocery shopping. This type of loan is best for people who are experiencing an everyday cash flow shortage and they can use it to pay for such expenses without cutting back on other extraneous needs. It would be a better decision to take out an instant cash loan rather than missing your rent payment and getting kicked out of the apartment or house.

Paying Off Credit Card Debt

When you have a huge credit card debt, banks usually give you phone calls daily and send you threatening letters on collecting other things you might own as collateral. If you are experiencing such a thing, getting an instant cash loan will be a great idea to settle the debt, be it for even a short amount of time. An instant cash loan can be a way of repairing some damage if you have other credit cards and you have used them till the limit of the card for some important payments. Removing some of your credit card debt is one essential reason for you to avail an instant cash loan.

To Avoid Taking Loans from Family and Friends

Pride comes into play when you are thinking of borrowing money from either your friends or family. Some people also find it difficult to borrow money from their closest relatives or friends or maybe you do not want them to know that you are having a financial problem so they do not get worried about it. Getting an instant cash loan is a good way to remedy as you are borrowing cash from someone who doesn’t know you personally and it will not hurt your pride.

Final Words

If you need money urgently and does not have any other way, besides borrowing money from a bank, an instant cash loan can be the right choice for you. They are also relatively easier to get, compared to a bank. Although they have huge interest rates, you will get the cash you want in case of a financial emergency that needs to be resolved quickly. Today we have made you aware of what an instant cash loan is and when you should decide to avail one. However, you should stay safe and make decisions regarding lending or borrowing money very cautiously.

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