Instant Personal Loan - Things You Need To Know

What do you do when you need money fast?  Everyone has unexpected expenses, but not everyone has the finances to deal with life’s little surprises.  It is just these situations when an instant personal loan can come in handy.

In fact, an instant personal loan can be helpful in getting many borrowers out of a sticky situation, and can often turnout to be less expensive than the fees associated with bank charges and credit card fees. 

As David Kreutzer, chief economist at the Center for Economic and Entrepreneurial Literacy, part of the Employment Policies Institute Foundation notes:

“Access to short-term lenders is a valuable asset for many borrowers; taking that choice away often leaves them with much less desirable and more expensive options like bounced checks or late fees,” (Duluth News Tribune, March 31, 2008)

As you are deciding whether you want to pursue an instant personal loan, you should carefully consider the following questions:

Overview Questions

• Do you really need an instant personal loan?  Before you leap into the world of credit and finance, you should ask yourself whether you really need an loan.  Assess whether you can borrow money from family or friends, utilize some savings, or use existing credit lines to solve a short term financing situation.
• What is your credit score?  If you don’t have good credit, you won’t get the best terms.  It’s as simple as that.  If you are looking for a loan of $1,000 or more, the lender will probably require a credit review.  Know what you’re in for before that process gets started.
• How much do you need?  Frankly, it’s easier to get an instant personal loan for a small amount of money.  Anything up to $1,500 can be pretty quickly approved, especially if you already have a bank account and credit history.  If you need more funds, you may find that approval will take a little longer.

Sources

• Large financial institutions:  Believe it or not, banks like Bank of America, CitiBank and Chase Bank offer quick turn around (practically “instant”) personal loans.  If you already have an account in good standing at one of these institutions, a short application process can lead quickly to a line of credit that you can use right away.
• Pay day loans:  If you have a pay check to offer up as collateral, you can often get cash instantly (minus a sizable fee) from a pay day advance vendor like PayDay America.  Bear in mind, though, that most states do not regulate these vendors, many of which charge very high rates in exchange for the high risks associated with these loans.
• Home Equity Lines of Credit:  Many home owners have access to a home equity line of credit that they may not even know about.  Check with your mortgage holder to see if a line of credit was approved as part of your original financing.  Alternatively, you can check to see if you’re eligible for a new line of credit.  The mortgage holder may be able to transfer funds to your account right away.

A Word of Caution

If you are in a situation where you are considering an instant personal loan, you are probably in need of funds fast.  Remember, though, that these circumstances are not necessarily the best environment in which to make good decisions. 

In these situations, many people fall prey to vendors that offer loans at exorbitant interest rates with unrealistic pay back times.  In some cases, people wind up paying more in fees than they actually borrowed in the first place!  Take a little time to do some research.  Think carefully about how much you need the funds in question.  Then, go out there and get the best deal you possibly can.