Here’s What You Need to Know About Direct Deposit Loans

Michael Collins
Jan 05, 2021

Direct deposit loans are loans where your funds can be put into your bank account soon after your loan approval. A direct deposit loan like the one from Possible Finance can help you quickly get money when you are in a time of need. 

Direct Deposit Loans 

If you are like many people in the United States, money can be hard to come by. Especially as a result of the pandemic, many people are without a solid source of income. Many people are living paycheck to paycheck or relying on unemployment checks and other government benefits, especially if you are not on employer payroll. However, this money oftentimes does not make all ends meet. There may come a time where an unexpected expense or emergency arises and you are forced to find money to pay for them. If you do not have the money in your account to front the costs, a personal loan could really help you get the injection of cash that you need. 

Unexpected expenses and medical emergencies can come in an instant and leave you extremely strapped for cash. While you may have the immediate cash to pay for these expenses, you may still have to pay rent, credit card bills, utilities, loan payments, and many other things. If you are in a jam financially and you need money in your account as soon as possible, just any typical loan may not do. The typical personal loan that you would get in such a situation won’t necessarily come as quick as you might need it to. The time frame from when you apply for your loan, get approved, and get the money into your online banking account varies from lender to lender. For example, a personal loan from a bank can take as much as a week or more for the money to be deposited. Online lenders and payday loan lenders tend to be shorter than this, but still can’t necessarily get you your money within the same day as getting your application approved. 

Thankfully, there are some personal loans that have the ability to get you your cash quickly. Such lenders can offer you direct deposit loans in minutes. Unlike banks, credit lenders, and many online lenders, you could have your money deposited into your bank account within the day or even within minutes in some cases. If you truly need money on a quick notice, a direct deposit loan could be your best option. While direct deposit loans sound perfect and seem like a no-brainer, they do not come without their flaws. They are not perfect and it is important to be made aware of some potential pitfalls with these direct deposit loans. Let’s take a look at the pros and cons of these loans so you can better make an informed decision. 

Pros of Direct Deposit Loans 

  • Get your cash quickly: As we described before, these loans allow you to get your money very quickly, usually within the day at the longest. This is the main aspect of these loans that can make them a more favorable loan choice than other loans. If you are really in a jam and need to conjure up money from thin air, getting money from direct deposit loans in minutes is arguably the most effective way to get that money. Few other financial services allow you to get money this fast. 
  • Unsecured loans: The vast majority of direct deposit loans are unsecured loans. This means that there is no collateral that you must put up when getting your cash loan. If it was a secured loan instead, you would be required to put up something of yours to serve as collateral for your loan should you default. Secured loans are safer for lenders while unsecured loans are safer for borrowers. Thankfully, most direct deposit loans are unsecured loans. 
  • Easy loan application process: Many of these direct deposit loans have painless application processes which you can get through as fast as you get your money! In contrast to banks, you can do the entire process online from your home with most lenders which saves you even more time. Many of these companies know they may lose a customer that is looking for quick money if the application or direct deposit form takes too long, so many online loan companies do their best to make the process of getting your money quick and painless!

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Cons of Direct Deposit Loans 

  • Limited loan amounts: The majority of direct deposit loans you will find from online lenders and payday loan lenders will be for $500 or fewer. While this might be a perfect amount of money for your needs, there is a chance that you need more money to pay for something more substantial. In that case, you would need to get a larger personal loan from a lender like a bank or a credit union that may take some time to get approved and for the money to appear in your account. 
  • High interest rates: Since many of these loans are payday loans, lots of these loans can have gigantic interest rates. While these loans may or may not be for large amounts, their high interest rates will make them relatively more expensive than other loans, especially if you have a poor credit score. 
  • Short Term Loans: Many instant direct deposit loans will require you to pay back your loan in a short amount of time, many times within the next week or your next “payday.” This paired with a high interest rate can make these loans very difficult to pay off. If you fail to pay the loan off within the short time frame, you will likely need to pay an additional fee and interest.
  • Predatory lenders: The majority of these instant direct deposit loans fall under the umbrella of payday loans. Payday loans are an industry that is riddled with predatory practices and is known to harm their customers more than it helps them. Many of these lenders have been busted for trying to put their customers into a payday trap cycle, which is trying to keep customers in a cycle of debt where they get more loans to pay off their current loans. This has become so rampant that most states now have regulations for payday loans and some states like New York have even outright banned payday loans in total! While there are many predatory lenders that you need to be careful for, lenders like Possible Finance offer instant direct deposit loans with the intention of building value for the customers, not harming them. 

When Should I Consider Getting a Direct Deposit Loan? 

While direct deposit loans might be useful, they are not meant for everyone and you should not necessarily get one. To start, there is no reason to get one if you are not in need of money. A widely repeated piece of personal finance advice is to not take on debt if you do not need to. When you take on debt, you are paying more back than you originally received. While there may be a boost to your credit score if you pay your loan off, the risk that you might default on your loan and hurt your credit history is not worth the risk and should be avoided altogether if you have no need for the cash from the loan. 

Even if you do need the money, you still may not want to get an electronic deposit loan. As we mentioned, direct deposit loans can oftentimes come from lenders that have very predatory practices and have high interest rates and very quick repayment periods. Overall, this can make these loans very hard to pay off. Chances are if you do not absolutely need the money within the same day, you are better off getting a safer and better loan from a bank, credit union, or trustworthy online direct lender. 

If you have a poor credit score, you might have the liberty of being able to pick and choose where you get your loans from. Payday loan lenders are often much more willing to give people with poor credit scores loans than banks and credit unions. If you have a bad score, you could be stuck with getting a direct deposit payday loan whether you need it quickly or not. 

The main situation in which you should consider getting a direct electronic deposit loan is if you are really in a jam and need a guarantee of some cash within a day or so. This is where an instant direct deposit loan can come in handy. Many of these lenders can get you your money within the day and you can have access to the cash you might desperately need. Delivering the loans fast is a key part of the payday loan business model and you should be able to easily find a payday lender that will give you a loan, even if you have bad credit. 

How to Get Instant Approval  for Direct Deposit Loan

Not everyone is eligible for an instant direct deposit loan. Before you apply for your loan, there are some requirements you should make sure you meet so that your loan does not get denied!

First off, to get any loan you will need to be over the age of 18 in most states. Likewise, you will need to show some sort of identification to prove you are who you say you are, whether it be with a driver’s license or some sort of other identification. These two apply to basically every single loan so do not expect to bypass these requirements.

Next, there are some other requirements that may vary from lender to lender. For example, some lenders require that their potential borrower show that there is a consistent source of income for the borrower. These lenders want to make sure that their borrowers will have the money to pay back their loans. Some lenders may not check this, but the pens that do will surely deny your loan application if you cannot show a consistent source of income. 

Likewise, while some lenders do not do credit checks and some offer loans to customers with bad credit, having the lowest credit score possible (300) will not do any favors for you and you cannot guarantee you will have access to a loan. In order to increase your chances of getting your loan application approved, here are some things you can do in the next thirty days to increase your credit score.  

Direct Deposit Loans from Possible Finance 

Here at Possible, we feel that we have the best direct deposit loan there is. We feel that our product combines the beneficial aspects of direct deposit loans while staying far away from the negative aspects of these loans that hurt customers who get payday loans. Because of this, we want to share our awesome product with you and encourage you to take advantage of it Here’s why we feel our loans are so great: 

Possible strives to fight for financial justice in the midst of an industry that continues to hurt its customers (payday loan). Like we mentioned earlier, many payday loans charge exorbitant interest rates and require borrowers to repay quickly. This causes a huge number of lenders from these companies to take even more loans out of necessity to pay off their first loan. Possible on the other hand seeks to mitigate both of these issues so that our customers can get the money they need without falling behind and needing more loans. Unlike payday loans, our loans are installment loans that are repaid over the course of four equal payments. If you are struggling to make your loan payment, you can extend your payment up to 29 days right within the app! Further, our loans have an extremely competitive APR compared to other loans in the industry.

Enough of why we aren’t bad. Let’s take a look at what makes our loans awesome. To start, our loans are instant direct deposit loans. Our application is extremely easy, which means you could fill our application out quickly and have your money within minutes if you are approved! That’s almost instant! It does not end there though. Our loans also build credit like credit builder loans. Unlike the majority of payday loans, our loans build your credit history over time as you pay them back. We also do not check your credit score, so you can get our loans if you have a poor credit score. Getting our loan with a poor score can really help you to build your credit history and improve your financial standing in terms of creditworthiness. While most payday loans don’t build credit history for their customers, we seek to improve your long-term financial health through credit-building features.
Need an instant direct deposit loan? Are you convinced that you want to get a loan with Possible? Download our app and get started today so you can have the money you need in your pocket.

Michael Collins

Michael has a passion for writing and has since brought that passion to Possible. He enjoys reading everything there is to know about film, sports, and finance. His studies in college allow him to be on the forefront of business knowledge so he can better inform his readers.

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