Many people shy away from personal loans because of the long and complicated process of applying for finance. If you use a traditional lender, you may end up waiting weeks for approval. In many cases, you may even wait weeks for a denial. If you’re looking to improve your chances of approval, online lenders can be a great option if you need access to quick finance.
Sometimes you need money quickly, so it’s good to work with a lender that understands time is precious. Online lending is taking over the personal loan game – not only is it easier, it’s also much faster. In many cases, you can even receive instant approval for certain personal loans online. Instant loans and instant credit cards are a relatively new thing. While many people may be used to receiving instant approval for credit cards, fewer borrowers understand that you can also find lenders who offer the same feature for personal loans.
In this article, we’ll explore the concept of instant loan approval online. We’ll help you understand the concept and provide information on finding the right instant approval lender. We’ll also provide you with advice on increasing your chances of receiving instant approval through a personal loan provider. If you’re interested in obtaining quick finance, make sure to pay attention to all the details in this article. We’re dedicated to helping our readers find the best personal loan information available.
What is an Instant Response Personal Loan?
So, what is an instant loan? An instant personal loan approval is simply an on-the-spot decision about a personal loan. Instead of waiting days or weeks to hear back, instant personal loan approval lenders will give you a decision in just a few seconds. They use software to determine your creditworthiness instantly.
Many of these instant approval lenders can also get you money extremely quickly. You won’t have to wait weeks for money to be transferred into your account. Some of these lenders can even get you money within 24 hours of approval. This makes instant approval loans a great option if you’re trying to get money in an emergency circumstance.
Most instant loan providers will tell you that they have an instant approval service. If a company doesn’t mention that their loan process is instant, then don’t assume that it is – make sure to ask if they provide instant approval if you’re unsure.
Types of Instant Personal Loans Online
If you head online to apply for a personal loan, you might find that there are two different primary forms of personal loan categories. In this section of our article, we’ll take a look at these two subsections to help you better understand what to look for when you’re applying for your next personal loan.
A secured personal loan is typically a loan that is tied to the value of an asset. For example, if you obtain a secured personal loan you will most likely have some form of collateral that ensures the lender can seize capital if you default on the loan. A mortgage or auto loan is a form of secured loan. The primary advantage of a secured loan is that it lowers the applicable interest rate on the loan. This is because the lender doesn’t have to take on as much risk.
The downside is that there aren’t as many secured personal loans online for instant approval. Securing a loan typically takes time, as the lender needs to verify the collateral you’re providing. If you want a quick personal loan, this probably isn’t the best option.
Another form of personal loan is an unsecured loan – this is typically the most popular form of personal loan. It doesn’t require you to tie the value of the loan to any asset, which makes it much easier to obtain. This being said, the interest rates on these loans are typically higher as they have don’t have any collateral tied to them.
If you’re looking for an instant personal loan, this is typically the best option available to you. Because there is less paperwork and admin, the lender is able to provide you with an immediate decision. The vast majority of online instant approval loans are unsecured.
Personal Loans: Guaranteed Instant Approval?
People often ask if personal loans can be guaranteed for instant approval. If you want money quickly, you’re probably trying to find out how to find a guaranteed loan. It may sound like it’s possible, but in reality, there is never a truly guaranteed loan. Lenders may offer you pre-approval and other benefits, but they’ll still have to make a final decision once they pull your credit score – they can’t fully do this until you apply for a personal loan.
Some lenders will take a look at your credit report using a soft check to pre-approve you. This means that they will run a surface level examination of your credit report – it won’t record an inquiry on your credit score. Still, when you fully apply for the personal loan most lenders will still run a full credit check on you to determine if you are creditworthy. For this reason, there are almost no guarantees, though being pre-approved will greatly increase your chances of loan approval.
Preparing for an Instant Personal Loan Application
If you want to be approved for an instant approval personal loan, you need to ensure that you prepare your credit score as much as possible. Because instant approvals are typically decided by a computer, your credit score and financial information will be critical in helping you obtain an approval.
Instant approvals are typically reserved for people with decent credit scores, though this can change depending on the lender you’re using. Regardless, you can take a few steps to ensure your credit score is up to shape before you apply for a loan.
Check Credit Score Requirements
First, you should always make sure to check the credit score requirements of the lender you’re looking to work with. You don’t want to apply for a loan that you can’t obtain. If you do this, you’ll end up with a lower credit score than you began with. Make sure to ask lenders what type of scores they accept.
If a lender is being secretive about their requirements, you can head online and check out credit forums to see what other people have been approved with. Many people post online about lenders and credit score requirements – it’s not an exact science, but it can help you avoid applying or a loan you have no chance of obtaining.
Check Your Credit Report
While many people know their credit score, few people regularly check their credit report. It’s very important to check your credit report before you apply for any financing. If you don’t, you may not know the reason that your credit score is low. Make sure to analyze the items on your credit report and ensure that all of them are correct. If you have something incorrect on your credit report, you’re not alone – thousands of Americans have mistakes on their credit reports.
Fix Mistakes or Higher Credit Repair Company
If you do find errors on your credit report, it’s important to fix them. Not doing so keep your score much lower than it should be. You can actually request directly for the credit items to be removed from your credit score – there are forms you can fill out from the credit reporting bodies. In addition, you can use a credit repair company to help remove these credit items.
If a credit reporting body isn’t providing you with assurances they will remove certain items, a credit repair company can help force their hand. It’s a great way to ensure that you get results – it may cost a little money, but it provides you with the strength of a large business.
Pay Down Revolving Debt
Lastly, it’s important to pay down your revolving debt as much as possible. This is actually one of the quickest ways to improve your credit score. Each month, credit card lenders provide statements to credit reporting bodies. Your balances are used to calculate a credit utilization ratio – the amount of available credit that you use is one of the largest contributors to your credit report.
If you can pay down your credit balances, or request a limit extension, you’ll be able to make quick improvements to your credit score. We understand that not all people will be able to pay down their limits, but you should at least try and request an extension. If you have a credit utilization of under 10%, this step may not be necessary for you.
Remember, this can be an extremely quick way to fix your issues. If you’re able to pay down your debt, the next time you have a statement period you will be able to see a sharp increase in your score.
Stay Away from Predatory Lenders
If you’re in desperate need of cash, you may end up with predatory lenders trying to fight for your business. Payday loan companies and other high-interest loan companies will provide you with instant approval, but they’ll also charge you extortionate rates and fees. Many of them suck in borrowers with ads stating, ‘payday loans online no credit check instant approval.’ This might sound great, but it’s a horrible concept in practice. Many people get stuck in a trap of high-interest debt when they work with payday lenders – some of these lenders charge over 100% interest rates, which can quickly spiral out of control.
In the past, payday lenders were the best options for people who needed money extremely quickly. Traditional lenders didn’t have the ability to get money to people quickly, as they were much more risk-averse. Fortunately, instant approval loans have opened a new gateway for people searching for personal loans at short notice.
Make sure that you’re working with a lender that provides reasonable interest rates. In addition, you should ask for the full cost of the loan upfront – this can help you avoid a misunderstanding of what you’re required to pay back. On top of this, ask about any fees or charges that aren’t directly advertised – you don’t want to get a loan that has a wealth of hidden fees or additional issues.
Lastly, make sure to check out review sites and consumer watchdog groups before you decide to work with a lender. You don’t want to use a financing partner that has a bad reputation with customers. Remember, money is extremely important – you need to be able to trust the finance company that you work with. If past customers have had bad experiences with your lender, there’s a high chance you will as well.
Consumer Affairs and the Better Business Bureau are great resources if you want to get some additional information on a lender. The provide a platform for customers to review companies and service providers. They also provide their own industry ratings on certain companies – it can help you decide if a company is trustworthy or not. If you want an instant loan online, make sure the lender is trustable.
If you’re looking for cash quickly, you don’t have to worry about payday loans or title loans anymore. With advances in technology and a range of different lenders offering online loans, you now have plenty of choices if you’re looking for a quick personal loan. Don’t sell yourself short – make sure to compare various lenders and opportunities before you decide to apply. Remember, you should aim to apply for one lender – if you end up being denied, your credit score will be damaged.
Make sure you confirm that the lender you’re working with provides instant approvals. You should also ask how long it takes to receive funds after approval – you don’t want to work with an instant approval lender that also takes weeks to transfer your money.
If you need any more information on personal loans or lenders, make sure to check out some of our content. We specialize in providing our readers with everything they need to know about personal loans and related subjects!
Robert is our in-house expert on personal loans and finance. He got an MBA, specializing in Finance, before joining the workforce. After working for multiple Fortune 500 companies in the past decade, he brings a wealth of knowledge and experience to the table.