Need cash, but don’t want to wait the countless hours, days, and weeks often associated with traditional bank loans? Well, if you’ve heard of instant personal loans, then you know these are a great alternative because they’re a type of quick loan that you can get within a few hours or even a few minutes!
They’ve become super popular among Canadians because they’re easy to apply for (done entirely online) and provide fast access to money, which can be very helpful in emergencies or when you face unexpected expenses.
However, as is the case with any type of loan, it's important to be cautious when applying for an instant loan. They’re incredibly convenient. But that being said, it’s still important to take the time to carefully consider your options to avoid potential financial problems in the future.
How Instant Loans Work
They're a type of short-term loan, usually up to $1,500. They’re easy to qualify for, and it’s a guaranteed fast way of getting cash when you can’t afford to wait around for days or weeks to handle your financial needs.
Unlike traditional loans, an instant personal loan is designed to be fast and easy. They typically require no paperwork (or very little) and are often applied for entirely online.
With iCash in particular, the process to borrow money involves filling out a simple form with some basic personal and financial information. Once you submit the form, you receive a decision immediately, thanks to our automated process.
If you’re approved for the loan (and over 90% of applicants are), then you’ll get your cash sent to you via e-Transfer in just 2 minutes.
This speed and convenience make them different from traditional loans, which involve a longer approval process and more complicated requirements. Regardless, it's important to understand the dos & dont's while taking an instant loan.
The Do’s of Getting an Instant Loan
Do Your Research
Before applying for an instant loan, it's important to research and compare lenders. Not all lenders offer the same terms, so comparing different lenders can help you find the best deal. Many lenders may have lower interest rates, while others might charge fewer fees for their instant personal loans.
By exploring all your options, you can find a loan that fits your financial goals, financial needs and budget. It's also essential to consider all the costs involved, including any extra charges or fees.
Doing your homework can save you money on your loan and help you avoid getting stuck with a loan that's too expensive to repay (and leading to potentially hurting your credit score and dealing with additional fees).
Read the Fine Print
When you’re ready to take out an instant loan, it's important to read the fine print. Sometimes, important details about the loan, like interest rates, fees, or repayment terms, are hidden. A reputable lender will always make sure the terms are shown.
With iCash, before you even apply for a loan, the terms and conditions are indicated clearly, so you know exactly what you’re getting before you submit your application.
By taking the time to understand these terms, you can avoid any surprises later on (like high interest rates you didn't expect, or being unable to pay the loan and damaging your credit score).
Look for anything suspicious like hidden costs or clauses that could increase the amount you owe. Understanding the full details of the loan can help you make a more informed decision.
Check Your Eligibility
Before you apply for an instant loan, checking the lender's eligibility criteria is a good idea. Different lenders have different requirements, such as a minimum income level or credit score. Applying for a loan without checking your eligibility can lead to your application being denied, which can hurt your credit score.
The Don’ts of Getting an Instant Loan
Don’t Borrow More Than You Need
If you decide to take out an instant personal loan, it's important to borrow only what you truly need and can afford to repay. Further to that point, reputable lenders will only lend you an amount that they know you can comfortably afford to repay.
If you borrow too much, you might struggle to make your payments, which can lead to more debt and potentially hurt your credit score. Over-borrowing can trap you in a cycle of debt that is hard to escape. By borrowing responsibly, you can avoid these risks and make sure that your loan is a helpful tool rather than a burden.
Don’t Overlook Repayment Terms
We get it. Looking at the terms and conditions and reading all the details of your loan agreement is no fun. But it’s an important step to take when considering an instant loan, especially if you want to avoid hurting your credit score.
Before you agree to anything, make sure you know the repayment schedule, including when your loan payments are due and precisely how much you need to pay for the total loan amount. Missing a payment or paying late can result in penalties and extra fees, which can make your loan more expensive. So always make sure you have that repayment capacity in your budget.
Some loans have repayment terms that are strict, so it's important to know them in advance. Suppose you find yourself in a position where you may not be able to repay your loan on time and are worried about incurring more payments regarding interest rates. In that case, it’s incredibly important to contact your lender as soon as possible and potentially set up a plan to repay the loan.
Don’t Apply to Multiple Lenders Simultaneously
Applying to multiple lenders might seem like a good way to increase your chances of getting a loan and increasing the funds in your bank account, but it can actually harm your credit score. Each application results in a potential credit inquiry, and too many inquiries in a short period can lower your score.
And even if you found yourself getting loan approval from many lenders, suddenly you’ll be in a position where you’re required to pay back multiple loans. This means multiple interest rate payments and if you’re not careful, multiple late payment fees.
All of that can add up incredibly quickly and lead you down a rabbit hole of increasing your existing debts, and the last thing you want is to fall into a debt trap.
Don’t Ignore Customer Reviews
Before choosing a loan provider, check out reviews from other borrowers. Reviews can provide valuable insight into how a lender operates, their interest rates, how they treat their customers, how loan approval works, and how reliable they are.
By reading reviews, you can avoid lenders with poor reputations and ensure you don't risk damaging your credit score or financial situation by going with a bad loan provider.
Is an Instant Loan Right for You?
When considering an instant loan, it’s important to keep all these do’s and don’ts in the back of your mind. Do your research on various lenders, read the fine print and check your eligibility. On the other end, avoid borrowing more than you need, overlooking repayment terms of the loan, applying to multiple lenders at once, and ignoring customer reviews, otherwise, you risk dealing with more financial trouble.
iCash will always be here to help you financially with our easy-to-qualify for loans. But more importantly, we’ll always remain honest and upfront about any processing fees, terms and conditions related to your loan, so you’ll know exactly what you’re getting. Regardless of your credit score, it's easy to get approved.
