What are instant-approval loans?
When unexpected bills or last-minute expenses come your way, you may need extra money in a hurry to cover the costs. Instant-approval loans provide borrowers with access to small amounts of money, usually up to $2,000. Instant-approval loan amounts are generally lower than other types of personal loans and must be paid back within a shorter term of up to one year.
Instant-approval loans may suit borrowers who need money instantly, but they generally have higher fees. Borrowers looking for instant-approval loans should always compare their options to make sure they’re getting a good deal.
Who offers instant-approval loans?
Otherwise known as ‘payday loans’ or ‘cash loans’, instant-approval loans are offered by a range of traditional lenders like banks and credit unions, and non-traditional online lenders and peer-to-peer lenders. As instant-approval loans vary between lenders, it always pays to do your research and make sure you’re applying for an instant-approval loan from a trustworthy lender.
How do you take out instant-approval loans?
Taking out an instant-approval loan is usually a quick process which can give you funds almost instantly. As eligibility criteria vary between lenders, borrowers looking to take out instant-approval loans should always start by comparing their options.
Once you’ve used a comparison website like RateCity and you’ve weighed up the pros and cons of instant-approval loans, you can click through to the lender’s website and apply to take out the instant-approval loan online. When taking out an instant-approval loan, you will need to be at least 18 years old, provide proof of Australian citizenship and prove that you can afford to repay the loan.
Can people with bad credit take out instant-approval loans?
Eligibility criteria tend to vary from lender to lender, but as a general rule of thumb, people with bad credit may still be able to take out an instant-approval loan. While each borrower sets their own rules, some instant-approval loans let you apply for up to $2,000 without a credit check.
Credit-impaired borrowers should always exercise caution when applying for loan products and be sure they are not taking on debt they cannot afford to repay.
How do you compare instant-approval loans?
With so many instant-approval loans on the market, comparing your options can be challenging. When comparing instant-approval loans, look out for fees and charges, specifically any default charges. Most instant-approval loans have an establishment fee, which may vary depending on the amount you borrow. Keep an eye out for instant-approval loans which offer repayment flexibility as you may wish to coordinate your loan repayments with your pay cycle.
What are the pros and cons of instant-approval loans?
The most obvious advantage of an instant-approval loan is fast access to additional funds, which might be a cheaper option to other sources of credit like a credit card. Applying for instant-approval loans is usually a simple process which involves filling in an online application.
When it comes to fees and charges, instant-approval loans tend to have higher fees than other types of loans and credit. The other potential drawbacks are shorter repayment periods and smaller loan amounts. Instant-approval loans are usually capped at $2,000, which may not be suitable for all borrowers.
Before taking out an instant-approval loan, borrowers should always compare their options and make sure they’re taking out a loan that suits their lifestyle, needs and budget.