What to Consider Before Applying for Small Instant Loans

Almost a quarter of Americans have an active personal loan that they’re currently paying back. If you’re looking to get small instant loans immediately, you’re far from alone. Payday lenders are willing to work with you to give you emergency funding or fast cash.

Here, we’re going to discuss some important considerations for those looking to get no credit check loans. Read on for some things to think about before submitting an online application.

The Basics of Small Instant Loans

It’s important that you know the ins and outs of small instant loans before taking one out. They’re also called ‘payday loans’ because they essentially serve as a cash advance on your paycheck. Most people take them out so they can have quick money to pay rent, buy necessities, or have immediate experiences.

While you can get loans up to $35,000, most people use payday loans as a way to get small sums of money. This makes sense because you will need to pay back what you take out with interest. $500-$5,000 is the most common range for small instant loans.

One of the best things about these loans is that they don’t require a credit check. If you have bad credit or haven’t had the chance to build any credit at all, this is an opportunity to get the money that you desperately need. Lenders won’t even check their credit score because it’s simply not part of their approval process.

This is because the loans do not go through a bank or credit union. You fill out an online application and are paired with a vendor that pre-approves you. There’s no need for them to check your credit score because their lending agency is set up to give out no credit check loans.

What You Can Use a Loan For

Many people take out small instant loans to pay for immediate emergency expenses. They may need money instantly so they can make a fast-approaching rent payment. Some people take out loans so they can pay utility bills before companies shut them off.

Emergency medical bills are also a common reason that people might take out a loan.

It’s important to understand, though, that you can use a loan for anything that you could use other cash for. It really is like a paycheck advance in that you can spend it at any retailer in person or online.

You can buy groceries and essential items like baby or pet supplies. You can buy clothes, books, and children’s toys. You can also shop online to your heart’s content if you’re looking to buy something fun and exciting.

The possibilities are limitless when it comes to what you can use your loan for. An engagement ring is a popular option, as is wedding planning. You can use a loan to take your dream vacation now and pay it back later.

Make sure that you know what you can and will use your loan for before applying. You don’t just want to take money out without a plan.

Some people also use payday loans to consolidate their debts. You can pay off multiple credit card bills with one single loan. This leaves you with only one debt to pay off so you can stay organized and make payments on time.

Secured vs Unsecured Loans

Before getting a small instant loan, you’ll want to understand the difference between secured and unsecured loans.

A secured loan requires you to put down a piece of property as collateral. This is usually your home, but it can be anything of financial value like a car or jewelry. If you don’t make payments on time or fail to pay the loan back, the bank or credit union will take the property as payment instead.

Unsecured loans don’t make you put down any property as collateral. Almost all payday loans are unsecured. This is awesome because borrowers don’t need to stress about losing their homes or other important belongings.

The Application Process

You’ll also need to know the basic application process for small instant loans:

1. Go to FastLoanDirect’s website
2. Enter the amount of money you want to borrow
3. Fill out the simple online application
4. Wait fewer than 24 hours to be paired with a vendor
5. Negotiate your payback schedule and interest rate
6. Sign contracts with them
7. Get a next-day direct deposit

It’s that simple!

Having a basic understanding of the process makes it much smoother. You’ll get your money faster and with less stress.

How Much Money You Need

It’s important to know how much money you need to borrow before filling out your loan application.

If you don’t take out enough money to suit your needs, the loan will be pointless. You’ll need to apply for another loan, which means 2 monthly payments and 2 different APRs.

However, taking out too big a loan will waste money in the long run. You’ll need to pay it back with interest, and so you’ll lose money since the APR is a percentage of what you take out. If you only need a $100 loan and take out a $200 loan, you’ll need to pay twice as much in interest as you should pay.

Since there’s no reason for this, it’s important that you correctly calculate how much you’ll need. Look at the bills you have to pay or consider everything that you need to buy. Add everything up and determine how much you’ll need to take out.

Make sure to give yourself a small cushion in case any more emergency expenses come up. This cushion will probably be about 10-20% of what you’re taking out. It can afford you a lot of peace of mind.

Interest and Payback Timeframes

Small instant loans are awesome because your monthly payment is consistent.

It isn’t like paying off a credit card. The size of your credit card payment will vary depending on how much you spend that month.

On the flip side, your loan payback is fixed. This makes it easy to budget for paying it back and takes the guesswork out of your payment plan.

However, you and the lender we pair you with will need to negotiate your interest rate and payment plan upfront. You’ll look into factors like your source of income and personal information to determine what a good interest rate is for you.

APR rates for FastLoanDirect users will be between 5.99% and 35.99%. It’s highly variable, so you’re going to need to read all forms carefully before signing them.

This interest rate will be tacked onto your loan right away so you’ll know immediately how much you’ll owe after the loan comes through.

This final sum consisting of the loan amount + interest will be broken down into even chunks. You’ll pay the same amount monthly for the duration of your payment period.

You will also be able to figure out a fair and viable payment plan. You’re going to pay your loan on the same date every month.

FastLoanDirect’s vendors have a 91-day minimum repayment period and a 72-month maximum repayment term. The term is going to depend on your qualifications. This is the length of time that you’re going to be paying off your loan, so longer repayment plans mean smaller monthly payments.

The Benefits of Small Instant Loans

There are many benefits of using payday lenders that you should know before taking out a loan.

One of the main ones is that your loan will come through as a lump sum. You’re going to get everything that you ask for upfront. This means that you can budget more easily since you’ll have all the funds you need in advance.

Your loan will also be instant. If you need money to make immediate payments or have emergency expenses, you won’t need to worry about waiting. This can alleviate a lot of anxiety.

Another awesome thing about a bad credit loan is that it can help you boost your credit score. If you make all your monthly payments and return all the money you borrow, this will reflect well on you. You’ll raise your FICO score and look more appealing to landlords, future lenders, and more.

Get Paired With Top Payday Lenders ASAP

Now that you know what to think about before applying for small instant loans, it’s time to get started. FastLoanDirect is committed to pairing you with a lender that best meets your needs.

The approval process is quick and easy, and you’ll have your money within just a day or two. Fill out a simple and secure form today to get a loan with an APR as low as 5.99%.