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A loan that you get immediately can be quite attractive especially when you find yourself in a pinch financially. There could also be situations that need immediate attention like an emergency house or car repair or medical bill payment. Sometimes expenses can become urgent if they are near the due date or if they are past due, such as your mortgage, rent, car payment and other monthly bills and payments.
When your financial situation becomes dire, a quick fix is needed, and instant loans can just be what you need. Instant loans do not require an extensive credit check and most lenders will only need a short interview of loan applicant on his/her income status, how much is the amount to be borrowed or how the borrower plans to pay back the money.
In some cases, there can be uncommon reasons for the application of instant loans.
A regular and steady source of income is one of the requirements by lenders and if you don’t have one, your ability to repay your loan will be questioned. Nevertheless, this can be one of the uncommon reasons for applying for instant loans. There may be lenders that consider even unemployed applicants, but the acceptance in such instances is still based on an alternate source of income, like a part-time job, a job application or an investment deposit. Absence of any of these conditions can be a reason for rejection of a loan application.
Applying for Loan with Welfare as Payment
There can be lenders who accept borrowers on welfare, but generally a supplementary income source will be needed. It is one way lenders can be assured that such type of borrowers can repay their loans. It is highly likely that an application for loan will be rejected if the reason is only welfare payment.
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Applying for Loan with Cash Payment
Having an unconventional mode of income payment can be convenient and quite troublesome at the same time. It is convenient because you can receive cash directly and spend readily on basic needs. But when it comes to bank statements, the cash received will not be reflected in the statement unless it is deposited to your bank account. This can be a problem when it comes to applying for a loan because lenders usually verify a borrower’s income through bank statements. If you can’t regularly deposit your cash income into your bank account every pay cycle, most lenders won’t be able to verify it. If that’s the case, try looking for a lender who can accept payslips as documents for verification.
For Restructuring Another Loan
Loan application for this purpose is not really uncommon, but more like not recommended. Financially speaking, using a debt to settle another debt can be detrimental to your financial stability. It speaks the same sense for loans. Applying for a loan for the purpose of fully or partially settling another loan doesn’t really get you out of your payment obligation, but only enters you into a new one, so try to settle an old loan first before applying for a new one.
There can be many reasons for applying for instant loans. Instant loans are helpful during times of immediate need such as emergency repairs and situations. For most people living the paycheck to paycheck lifestyle, instant loans are also helpful for keeping them afloat until the next paycheck, especially when it comes to urgent payments and bills. When used sparingly and wisely, instant loans can be reliable fallback mechanism in times of emergencies. Borrowers still need to think it over though, as instant loans could also entail different repayment schemes from regular loans.