Instant approval loans can be a lifeline when you need money quickly. The questions are who can get them and is the process is difficult? Is there a right or wrong way to apply and where can you get instant approval loans?
This article should answer those questions and many more if you’re considering an instant approval loan. Let’s start with what an instant approval loan is and who might qualify for instant approval loans.
What is an Instant Approval Loan?
An instant approval loan is a personal installment loan with a vary fast review process. From the moment you complete your application form to funds release may be as short as a few hours.
However, this does not mean that you will get your money instantly. It just means the lender let’s you know whether you’ve pre-qualified. Nonetheless, in many cases a good lender will get money into your bank account by the next business day.
While these loans aren’t precisely instant, they are much faster than any loan you could get through traditional methods. The lender lets you know quickly whether or not you qualify and they also tell you what terms they are offering you. Lenders can do this, because they use automated processes such as employment, banking, and digital income verification as well as artificial intelligence reviews.
Since a instant approval loan is a type of personal installment loan, you can use it for almost anything. Common reasons for borrowing include emergency expenses, medical bills, and debt consolidation.
Who Qualifies for Instant Approval Loans?
While many lenders have similar requirements for instant approval loans, some offer loans for specific borrowers. For instance, those with little or no credit history may qualify through some lenders. Other lenders may offer instant approval loans to those with bad or fair credit.
What Should I Do Before I Apply?
Before you jump into any loan application, there are definitely mistakes you can avoid. We suggest you go through our list of 11 things that may impact your application the most. It’s a quick read, but it could save you a lot of time and frustration.
Always, always, always double check your application form before you submit it too. Many people are denied, because they fail to fill out the entire application form or provide incorrect information.
Remember, loans with instant approval rely heavily on automation. Of course, if you realize you made a mistake later, most lenders let you reapply.
What Criteria Might a Lender Consider?
As mentioned earlier, lenders cater to certain customers and there’s a lender for almost anyone. Nonetheless, you’ll up your chances of approval if you consider key factors when you’re making loan applications. The following are some of the most common:
Decent credit score – many lenders will automatically turn you down if your credit score is lower than 670. Yes, you can certainly find lenders that offer instant approval loans for lower credit scores, but the trade off is usually a higher interest. Always boost your credit score as high as possible before you apply for instant approval loans.
Steady income – even if you have little or no credit or a less than ideal credit score, many lenders will offer you an instant approval loan if you earn a steady income. This shows you have the means to repay your instant approval loan.
However, stability requirements may differ greatly between lenders. If you’re new to a job, you should wait at least two or three months before you apply for an instant approval loan. That’s pretty much the minimum time most lenders consider.
Reasonable DTI – we suggest you calculate your DTI by dividing your monthly debt payments by your gross monthly income. If yours is higher than 36%, try to pay off a few bills to get closer to this percentage.
Yes, some lenders do offer instant approval loans to those with DTIs as high as 50%, but that’s not ideal. Once again, you’ll pay more in interest if they offer you an instant approval loan.
Are Interest Rates Higher on Instant Approval Loans?
Not really. Many factors affect loan interest rates, but the factors used aren’t any different between instant approval loans and other personal loans. The most common considerations are mentioned above – your credit scores, your income, and your debt-to-income ratio.
One factor that is important is the lender you choose. Interest rates can vary widely between companies, regardless of your financial situation.
Still, the interest rate on a personal loan with instant approval can rival that of any other loan. It just depends on where you apply and your personal and financial situation.
Will I Pay More Fees for an Instant Approval Loan?
Not necessarily, if you do your homework. Some lenders offer fee-free instant approval loans, while other have several fees and penalties you should look out for. These include:
Origination fee – a fee levied when you apply for your loan or it is deducted from the money you receive. It is presumably meant to cover administrative expenses. This fee is calculated as a percentage of the loan amount, ranging between 1% and 8%.
Prepayment penalty – the lender charges you a penalty if you pay more than your scheduled payments. Examples include making extra payments or paying off your loan early.
Is It Difficult to Apply for Instant Approval Loans?
It doesn’t have to be. Many online loan lenders make it very simple and convenient. The best online loans with instant approval typically offer the following features:
Simple Application Form
No one wants to spend hours filling out an application form. Always look for a lender or broker with a simple form you can complete in less than 15 minutes.
Pre-Approval Process
A pre-approval process uses a soft credit inquiry that does not lower your credit scores. You can see what lenders are offering you to help you decide which instant approval loan and lender is best.
Luckily, pre-approvals are obligation-free too. If you don’t like what one or any of the lenders offer, no problem. You can apply elsewhere. Better yet, apply through a loan broker for direct access to many lenders using a single application form.
Identity Verification
A good lender will always ask for details such as your Social Security Number to confirm your identity and age. This information also shows the lender that you are of legal age in the state to ensure you’re both protected by regional laws. Of course, this is also important since it protects you from identity theft.
Automated Proof of Income Process
Many lenders now use electronic income verification for speed and simplicity. Instead of scanning and uploading pay stubs, the lender or direct lender network verifies your direct deposits electronically to see if you qualify.
Luckily, this method may also help those who earn money in other ways beside a regular job. If you receive a steady pension or disability amount, they can verify this information easily so you can qualify through an appropriate lender.
What Other Information Might a Lender Ask For?
If you’re pre-approved and you decide to go ahead with your instant approval loan, the lender may ask you to supply certain documents to finalize the process. This may include employer and income verification.
Self-employed applicants may need to provide additional documentation such as their income tax returns or income statements for the past few years.
How Long Does It Take To Get Funds?
By now you probably realize that a lot rests on the lender. Luckily, if you choose a good lender or direct lender network, you should know whether you’re pre-approved within minutes.
If you like what you see, it is just a matter of accepting the terms and providing whatever documents the lender may need. If you do that right away, the lender will prepare your loan documents for digital signature. This triggers the start of the funds release process.
The lender will ask for banking information so they can deposit the money in your account. If you want a quick process, we suggest you apply during business hours so the paperwork’s handled immediately. Good lenders can sometimes put money in your bank account in hours, but usually it is the next business day.
What Happens If You’re Turned Down?
If you follow the suggestions mentioned above, you will certainly improve your odds of approval. You can also boost the likelihood of approval by applying through many lenders.
Obviously, no one wants to waste their time filling out multiple application forms. Luckily, you don’t have to do this. Choose a lending broker instead who can connect you with an array of direct lenders. It’s faster, safe, and more convenient and improves your chances of personal loan instant approval.
Still, there’s no guarantee you’ll be approved. Lenders may reject your application for a number of reasons. If so, revisit your financial and personal situation.
Did you check your credit reports through all three credit reporting agencies? Are you trying to borrow money than your income warrants? Do you have a high DTI already, but you’re trying to borrow more money? Did you review your application carefully before you submitted it?
FlexMoney Offers Instant Approval Loans
If you’re looking for loans with instant approval, FlexMoney USA can help. We offer installment loans with instant approval from a network of reputable U.S. lenders. Loans range between $200 and $35,000 and the process offer an easy, safe way to check what’s available to you in minutes, without lowering your credit scores.
Complete one application form and we’ll find the most suitable lenders for your needs. They’ll connect with you and show you what they have to offer.
By using the best alternative lending platform in the U.S. you can compare interest rates and terms to find the best online loans instant approval online in just a few minutes. Apply today.