Everything You Need to Know About Instant Payday Loans

Instant cash loans are small loans that you can apply for, get approved, and get your money all within a short amount of time. 

Instant Cash Loans

Today, the world moves faster than it ever has before. With every advancement and improvement in our society, everything we do has become faster. Our food, technology, and transportation is getting faster and faster all the time. 

It seems essential to keep up with the pace of life in this world if you do not want to get left behind. A huge part of this is keeping up with your personal finances. In the past, your finances were maintained on paper, including making a budget, applying for a loan, and depositing a check. You can now make budgets on apps, deposit your checks with a picture, and apply for a loan online!

Being able to access money instantly is part of our fast-paced economy. Emergencies or other unexpected expenses may catch you off-guard. If you are tight on money, you may need an injection of fast cash to help you make it through to your next paycheck. In the past, you would go to a traditional payday lender, which we all know are not trustworthy. Thankfully, you can get an instant cash loan from a variety of lenders today. With a lender like Possible, you can apply for a quick loan online and have your money within an hour. 

Instant cash loans are a great way to have access to funds if you are in a jam, for example, if you need a payday advance. However, these kinds of loans are part of an industry with a reputation for being very predatory and harmful to its customers. Let’s take a look at what instant cash loans are and their pros and cons so you can decide whether an instant cash loan is right for you. 

What is an Instant Cash Loan? 

An instant cash loan is a type of online loan that allows you to have your money within a short time after you apply for the loan. Instant cash loans do not always get you money “instantly,” but they are one of the fastest ways to get a cash advance into your bank account.

While many of the traditional lenders that provide these loans are from brick and mortar storefronts, the fastest and easiest way to get these loans is through online lenders. An online lender can access and comb through your information very quickly, so you won't get instant approval, but you can be approved or denied within a short time. After being approved, you can access your money within a few hours to a few days, depending on your lender. 

Because it is usually an unsecured loan, an instant cash loan is typically a small amount. The vast majority of these loans will not be more than $500 and can be as little as $25. If you need any loan size bigger than this, chances are you will not be able to get it as “instantly” as you would one of these smaller loans. This is because lenders are unwilling to risk a large sum of money for an instant loan. Lenders like to do their due diligence on the potential borrower, but instant loans do not exactly allow for that. Therefore, lenders of quick cash loans try to minimize their risk but only lend a small amount of money. 

Since these loans are small, the loan term will be different than a typical loan. Repayment periods for are often very short and you can expect to have to pay them back anywhere from one week to two months afterward. Your repayment period will depend on your loan amount and your lender, among other things. 

Instant cash loans are also available to those with poor credit history. Since smaller loans are some of the only loans available to those with poor credit, most instant cash loans are available for customers with bad credit scores. This can be a benefit because, with instant cash loan lenders like Possible, you can pay back your small loan and build your credit score if you successfully make payments. Few lenders do this like us, so it is highly recommended that you get a credit building loan with Possible if you are looking for a cash advance with bad credit. 

Since these loans are both small and offered to customers with poor credit, the APR tends to be very high. You can expect a good APR to be in the low hundreds of percent but can be as high as in the thousands. An APR in the low hundreds might seem like a lot, but this is mostly because it is small and repaid over such a short period. 

Now you know what an instant cash loan is. Let’s weigh the pros and cons so you can make an informed decision of whether to get one or not. 

Pros 

• Speed: The main benefit of instant cash loans is how fast you can get your money. The amount of time it takes to receive your money depends on the lender and loan size, but you can bet you will get your money faster with these lenders than a traditional bank or credit union. 

• Fewer requirements: Loan approval is typically easier as few barriers prevent you from acceptance. For example, normal loans might require you to have a good credit score, show proof of income, and put up collateral for your loan. For many of these loans, all you need is proof that you are over 18 years of age and you are a United States citizen. Most lenders will require you to show proof of income, but some may not. 

• No required credit scores: The majority of these instant cash loans are offered to those with poor credit scores. If you have a poor credit score, you are more likely to get an instant cash loan than a larger personal loan. Some of these lenders may not check your credit score before they loan you money. Other lenders, like Possible, will even help boost your credit score after you’ve paid off the loans. 

• They are mostly unsecured loans: Many of these instant cash loans are unsecured, which means that the lender does not require the borrower to put up collateral for the loan. Larger personal loans, on the other hand, might require the borrower to put up collateral. If you fail to pay back your instant cash loan, you will likely see a hit to your credit instead of having to forfeit some of your property. 

Cons

• Short repayment period: Since instant cash loans are smaller, they are frequently required to be paid back in a short amount of time. While it may be a benefit to have to pay it faster so the debt is not looming over your head, this is easier said than done. Chances are if you need a fast loan, it may be challenging to pay it back quickly. If you are living paycheck to paycheck, instant cash loans can be a burden financially. Look for lenders like Possible that allow you to extend your payment date if you are struggling. 

• Risky: Since these loans must be paid back quickly, you might end up not having enough money to pay for it when it is due. You might have no other option but to take out even more debt to pay for your current debt. This can put you in a payday loan trap that can be extremely difficult to get out of. Before you get an instant cash loan, make sure you have the means to pay it back so you can avoid a vicious cycle of debt. 

• Predatory Practices: Instant cash loans are closely aligned with the payday loan industry. The payday loan industry has a bad reputation for having very predatory practices towards its customers. These predatory lenders intend to bury you in loans so you have to pay a higher interest rate. According to a 2016 report, many of these lenders target low-income communities since they have more difficulty repaying their loans and are willing to accept loans with poor terms out of desperation. Possible is doing everything it can to fight for financial fairness in an industry riddled with unfairness. We are no traditional payday loan lender. As such, we aim to be transparent and create value for our customers, not push them under.

How Can I Get an Instant Cash Loan?

Convinced you want to get an instant cash loan but don’t know how to go about it? No worries. Let’s walk through some of the steps you should take before you apply for an instant cash loan so you can help guarantee you won’t get your application denied! 

Improve Credit

Arguably the single best thing you can do to make sure you don’t get denied for an instant cash loan is to improve your credit. Even if your credit is bad, you can work to improve it over just a short period. 

There are a few things that impact your credit, and some are more important than others. For example, did you know that your payment history makes up 35% of your credit score? This means that the worst thing you can do to your credit is to miss payments continually. However, on the other side, the best thing you can do for your credit is to make your payments overtime consistently. Here are the other factors that make up your credit score. 

A quick way to build your credit score before your loan application is to get a credit builder loan with Possible. If you pay back our small loans, we report your successful payments to the credit bureaus. This then helps to boost your credit score. Worried about taking our more debt to boost your credit score? No worries. Our loans have competitively low APRs and if you are struggling to make your payment, you can extend it right within the app up to 29 days. 

Compare Lenders

Each lender is different and will likely lend you a different amount of money and have different repayment terms. One lender might have low APR but will make you pay back in one week, while another might have high APR but a long repayment schedule. Make sure you are doing your research and comparing what lender is best for you. The worst thing you can do is not do your research and end up with a loan that just puts your further in debt! The loan industry can be untrustworthy, so make sure you have done your research before getting an instant cash loan. 

Have Proof of Income

As we mentioned before, the vast majority of the instant cash loan lenders will require that you have proof of income before getting a loan. Even if you do not have a job, make sure to show that you have a steady influx of money from whatever source. Without proof of income, you can pretty well expect you to get denied. 

Where is the Best Place to get an Instant Cash Loan? 

At Possible, we feel that we are the best place for you to get an instant cash loan for many reasons. To start, you can apply to our loans and get your money within the hour if you are approved. Many other lenders that claim to have “instant cash loans” might not give you your money in the same day and might even make you wait a few days. If you are in a time of need with money, Possible can be there for you. Instead of being overwhelmed with repaying a difficult loan, we give our customers a competitive APR and we allow you to extend your payments up to 29 days. Unlike other lenders, we don’t want to see you fail; we want to build you up. 

Getting an instant cash loan is so much more than just getting emergency cash. With a bad loan, you could see your credit score drop if you are struggling to make payments because of the harsh terms your lender gave you. At Possible, we want to go against the grain of an industry that is riddled with these predatory practices and provide our customers with the best loan option for their needs. We aim to build value not just provide a service where they can get loans. We know that having poor credit can be hard, and it can be even harder if you can only get the worst of loans. This is why we offer loans to those with poor credit, and go out of our way to make sure your payments for our loans are reported to the credit bureaus. 

At Possible, we offer quick loans that help you build your credit. It’s the best of both worlds! Convinced you want to give us a try? Download our app today and get started!