Instant approval loans bring peace of mind very quickly if you're struggling financially. It's wonderful not to have to wait for a couple of days, on edge about the possibility of being turned down. However, like other fast loans, these instant approval loans have some parameters that you need to double-check before assuming anything about the loan. If you don't know about these issues when you agree to take the loan, you could find yourself struggling again, just for different reasons.
Approval May Be Instant, but Your Bank May Cause a Delay
Instant approval doesn't mean instant deposit because your bank may have an automatic delay on any funds being transmitted electronically. If you're lucky enough to be in a place where you can get the loan in cash, then that could be an immediate disbursement, of course. But many payday loan companies use bank transfers to get the money to you. Be sure you know how long you'll have to wait to get the money after you're approved for the loan.
Double-Check That Payment Schedule
You're going to find a couple of different repayment schedules when you investigate payday loans, so be sure you know the exact schedule you'd have to follow for the place that's approving your loan -- do not assume anything. One possibility is that you'll have until your next scheduled payday to pay the loan plus interest. You'd have to get your pay and turn right around and pay the loan back. This can work if there will be a way for you to pay before the loan place closes that day, such as paying online or paying late in the evening on the same day. Another option is to have a month or so (or another specific time period) to pay everything back. This offers greater flexibility if you have a bunch of bills coming up.
Where and How Can You Pay?
Do you have to pay in person at the exact location where you got the loan, or can you pay at any branch? Can you pay online? Depending on your work and repayment schedules, one or more of these may be acceptable or not.
What Happens if You Can Pay Early?
Many loans, in general, give you a break on interest if you can pay the principal back early. You don't get a break on the rate, but if you have a loan that's due in a month with a certain amount of interest added on, and you can pay the loan back half a month early, would you owe only half the interest amount that you would have owed had you paid after a month? Or would you still owe that interest amount in full (again, not the rate, but the amount of money)?
Get this information beforehand to ensure you know your repayment terms and methods, and so that you know exactly when that money is coming in. Your repayment time will be a lot calmer if you aren't blindsided because you forgot to read the terms of the agreement.Share