Taking a loan is not considered good by many. The reason is there are several misunderstandings surrounding different types of loans that prevent people from applying. This article dispels the myths surrounding the same day instant cash loans.
Myth #1 – Instant Cash Loans Have a Long Processing Time
Instant cash loans have the shortest processing time. You may get the cash in hand the same day or the next day. These loans are unsecured, and there is no requirement for security. The lender needs a few documents to approve your loan application.
Myth #2 – Low Credit Score Means Loan Rejection
This is not true. Many people with a low credit score can get instant cash loans without any difficulty. These loans are generally of smaller amounts. Many lenders may not check your credit score while approving the loan.
However, some lenders may check credit score but still approve the loan. Some lenders specifically offer instant loans with a bad credit score. The only disadvantage of such loans is the lender might levy a high Annual Percentage Rate on loan.
Myth #3- Only Banks and Financial Institutions Offer Instant Loans
Many private lenders also offer instant loans. They have been running their business for many decades. It is easy to find such lenders, and the Internet is the best source. Typing keywords like “instant cash loans” will list your name of the lenders who offer instant cash loans.
Most lenders have a website presence where you can know more about such loans. You can get knowledge about the loan procedure, documentation requirements, and the interest rate. Some lenders also allow you to apply for instant cash loans through their websites.
Myth #4- Those With Existing Loans Cannot Apply for Instant Cash Loans
Instant cash loans are short-term loans with a loan tenure of a few months to a year. Most lenders will not check your current debt, while some might do so through questionnaires. They look at your income source and your stable income while approving the loan.
If the income debt ratio is below 60%, most lenders will approve the instant cash loan. The income debt ratio is checked to ensure the borrower can afford the new EMI and other loan installments. However, there is very less probability of your loan application being rejected due to existing loans.
Myth #5- All Instant Cash Loans Come With Prepayment Charges
This is not true. In fact, “No Prepayment Charges” is advertised as USP by many lenders. Instant cash loans are not as big as personal loans or other loans. Some lenders offer a maximum $20,000 instant cash loan while some provide a maximum $50,000 loan. Mostly, people take small loans to meet their emergency needs.
The repayment tenure is also small, like a few months or 365 days. Hence, the lender does not lose much on prepayment. Prepayment lowers the lender’s risk, so lenders do not levy any prepayment charges on instant cash loans. To stay on the safer side, check the loan terms and conditions for any prepayment charges, or ask the lender.
Thus you can see most myths related to instant cash loans exist due to people’s lack of knowledge about the financial product. This post clears the common myths surrounding instant loans and gives you an updated insight into these loans.
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