What are instant approval loans?
Instant approval loans are payday loans that have a very short assessment process. Please note that the name is a bit misleading, because no assessment can ever be instantaneous and approval can never be guaranteed.
Taking out an instant approval loan involves a four-step process:
- You fill in the payday loan application
- Your application is assessed
- Your application is approved
- The lender transfers the funds to your bank account
With some payday lenders, the process is so quick that it may be completed within an hour. However, even if the payment is made that quickly, it might then take two business days for the money to arrive in your bank account.
Can anyone get instant approval loans?
No. Lenders will only give you an instant approval loan if they believe you have the capacity to repay the loan.
Different lenders have different assessment criteria, but you’ll generally have to meet certain benchmarks regarding your income, spending, employment and identity.
Your application for an instant approval loan might be rejected if:
- You have a bad credit history
- You don’t earn enough money
- You spend too much money
- Your employment status is not secure
- You’re not an Australian citizen or resident
- You’re not at least 18
Do I need security for instant approval loans?
As a general rule, you don’t need to provide security to get an instant approval loan. However, in return for giving you a quick loan and not asking for any collateral, the lender will almost certainly charge you high fees.
With instant approval loans, the lender can charge an establishment fee of up to 20 per cent (which would be $300 on a $1,500 loan) and a monthly fee of up to 4 per cent ($60 on a $1,500 loan).
How do $1,500 payday loans work?
A $1,500 payday loan is a loan that is likely to have a fast approval process and charge high fees. Depending on your circumstances, you might be able to receive the money within an hour.
However, if you want the lender to give you the money almost instantly, and without conducting an in-depth credit assessment, you’ll have to pay for the privilege. The lender can charge you a one-off establishment fee of up to 20 per cent (which would be $300 for a $1,500 payday loan) and a monthly account-keeping fee of up to 4 per cent (or $60). Payday lenders can only charge fees – not interest.
How do I get a $500 payday loan?
The most common way to get a $500 payday loan is over the internet, although some lenders also take in-store applications. The application process may take as little as five minutes and, in some cases, your loan may be assessed and approved within the hour.
When you apply for a $500 payday loan, you will probably have to provide:
- Name and address
- Proof of identification
- Employment details
What are payday loans?
Payday loans are loans of up to $2,000. Loan terms are generally between 16 days and 12 months, although they can sometimes be longer. Payday loans usually have these three characteristics:
- Borrowers need money in a hurry
- Applications are assessed rapidly
- Loans are expensive (high fees)
Are $500 payday loans dangerous?
Payday loans can be dangerous because they come with high fees, which could cause problems if you’re struggling with debt. On a $500 payday loan, the lender may charge an establishment fee of up to $100 and a monthly fee of up to $20.
That’s why you should look at a $500 payday loan as an option of last resort – something to consider only if you’ve explored all other options. If you do take out a $500 payday loan, you should have a plan to repay the loan and get out of debt.
Should I take out a $1,000 payday loan?
As a general rule, you should think very carefully before you take out a $1,000 payday loan – and proceed only if you’ve explored all other options. That’s because payday loans generally have very high fees.