You can expect a good APR to be in the low hundreds of percent but can be as high as in the thousands.
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.
- 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.
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
- 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.
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
- 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.
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
- 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.
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
- 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 https://signaturetitleloans.com/payday-loans-sc/ 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.
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
- 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.
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
- 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.
