An instant loan can get you to cash quickly — sometimes within the same day — even if you don’t have strong credit. Getting fast cash for unforeseen costs such as a car repair or medical bill can feel like a solution. Online loans offer so many advantages it is hard to narrow them down. However, the following are some of the most notable features of instant loans that you will love.
1. Extremely Convenient
Undoubtedly, the greatest advantage of online loans is convenience. You don’t need to book an appointment, drive to a bank branch or office, find parking, and wait to be served.
Instead, you can apply from any device at anytime from anywhere. It is especially convenient if you work shifts or your hours don’t align with “normal” business times. If you have an internet connection, you’re good to go.
2. Easy Application Process
Besides being able to apply at anytime from anywhere, the process is much simpler than an in-person application. For example, no one will ask you to list your addresses or employers over the past five years.
The application process is dead simple. An online application form through a good lender usually takes less time to get approved. Of course, you will need to provide your banking information for funds transfer and income verification purposes. However, everything else is very straightforward.
3. Wide Range of Borrowing Options
Online loans can be for less than tens of thousands of dollars. So, when you need quick cash for an urgent need, an instant loan in Canada can be a good solution.
A lender may not grant you the full amount if it’s your first time working with their company. Fortunately, if you meet your loan obligations, you’ll usually qualify for a higher amount if you want to borrow again.
4. Costs Revealed Upfront
Online loans provide you with the financial information you need before you sign on the dotted line. A good lender reveals all costs upfront and discloses potential penalties should you fail to meet your obligations.
The best part is that you’re given this information without obligation. So, if you don’t like what the lender offered you, you can look elsewhere. Just make sure the lender uses a “soft” credit inquiry. Otherwise, the process could negatively impact your credit file.
5. Fewer Requirements
We already mentioned online loans are convenient and offer a simple application process. But, more importantly, online lenders are often more lenient than traditional lenders.
Non-traditional lenders hope to pick up the fringe business big banks don’t want to deal with. As a result, their criteria for qualifying for online loans are often less stringent. Luckily, a good alternative lender will seriously consider your application, providing you can demonstrate three-months stability.
6. No Proof of Income
Yes, you read that correctly. But unfortunately, many online lenders do not ask you to provide them with proof of income. But conversely, the big banks want proof of what you earn.
It can be extremely inconvenient for self-employed individuals. They must request an income statement from their accountant or hire one for the sole purpose of the loan application. Once again, there’s no guarantee they’ll accept this documentation even after going through all the trouble.
Most other people will need to look for pay stubs or contact HR. However, a good online lender will verify your income through your bank. They can’t and don’t want to look into your finances. All they need is verification that you’re paid regularly through direct deposit.
7. Emphasis on Salary, Not Credit
Traditional lenders also place a great deal of emphasis on your credit. Most have a minimum credit score requirement before considering your application.
However, non-traditional lenders use their scorecards to determine creditworthiness. There’s a greater emphasis on how much you earn than on your credit. Depending on their review, they may not check your credit if you’re borrowing a small amount.
8. Quick Decision
Once again, online lines beat in-person loans hands down. You don’t have to wait while employees work through their inbox pile.
Instead, a good online lender uses artificial intelligence to assess your application immediately. They let you know within minutes whether you’re approved, and you’ll see what they’re offering.
9. Simple Repayment Strategy
Whether you choose a payday or installment loan, your repayment strategy will be simple. Payday loans are normally repaid on payday after you’ve worked a full two weeks.
In either case, you should borrow wisely. Instant and installment loans aren’t meant for a shopping spree or to top up your bank account when you’re spending more than you earn. However, they can get you out of a temporary financial bind or provide reasonable payments if you need more money.
How to Choose a Good Instant Loan
Before you check out the various instant lenders in Canada, getting acquainted with the loan features that differ from one lender to the next is a good idea. Remember, reputable lenders should offer loan terms mutually beneficial to both lender and borrower. With that in mind, the first rule in finding a good instant loan in Canada is to learn to spot and avoid predatory lenders.
Optimizing Your Loan
Obtaining a loan is supposed to be a financial benefit—it’s not meant to make life harder. Only you understand your financial situation, so for any loan, it’s important to pay close attention to factors like the interest rate, term length, fees, prepayment penalties, and any add-on products or services.
For example, if you need a fast loan online and plan on paying it back quickly, then it’s crucial to choose a loan that has no prepayment penalties, even if it has a high-interest rate or unsuitable term length. On the other hand, if you take a while to pay back the Loan, then opt for one that has the lowest annual percentage rate and longest term.
Is it a good idea to get an instant loan?
Instant loans can be an ideal solution during a financial crisis. Be it wedding expenses, home renovation, or medical emergencies. An instant loan online in Canada can be your solution to meet immediate financial requirements as they are easy to get, fast in disbursal, and require no collateral.