Instant Loan FAQ

11 May

Instant loans are fast turnaround loans that operate on a case-by-case basis, usually curated by independent companies as opposed to banks. They’re extremely useful if you need a short-term loan to cover any kind of sudden expense. Usually, after the company has assessed your ability to be able to repay the loan, you’ll be instructed to pay it back on your next payday.

Instant loans have a number of benefits, including the fact that you can avoid having to ask your friends or family to borrow money on a short-term basis. They’re hassle free and, of course, offer instant gratification. You can review your options for an instant loan here after you’ve gone through the following commonly asked questions about fast loans.

What are instant loans for? 

Instant loans come in handy for all kinds of urgent, emergency situations that may inconveniently crop up before your payday arrives. These situations could range from medical emergencies to urgent home renovations. They are things that require urgent attention which will result in further damage and cost if they’re not dealt with.

An instant loan will enable you to deal with these emergency expenses swiftly. Once your payday comes around, you’ll be able to repay the loan comfortably.

How much will I be able to borrow? 

There is no set fee or limit to how much you’ll be able to borrow. With these institutions, the rates differ from one to another. Your own personal financial circumstances will also come into play and affect the amount you’ll be able to borrow. Every case is considered on its own merits.

The amount will also be determined by your own affordability and credit rating. A low credit rating will not necessarily mean you won’t be able to get a loan, but it will probably affect the amount you’ll get. Obviously other factors influence this process too, like what you need the loan for.

The lender will always consider any negative information – like a bad credit rating – against any the positive factors in your application. The main concern is if the loan is affordable for you and that you’ll be able to pay it back in a sustainable manner.

Are Instant Loans dangerous? 

Instant loans have been getting some bad press as of late in the UK. However, research has shown that this is mostly due to irresponsible lending and borrowingand that half of those that have taken instant loans out have described their experience as ‘positive’, unlike the loan shark image that MPs have used.

You have nothing to fear as long as you’re responsible and realistic about your expectations of repayment.

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