Loans With Instant Online Approval: The Fine Print

Many people use instant approval online loans for emergency cash.  Generally, the money is needed quickly and desperation can lead to bad money decisions.  Before you consider taking on one of these loans, read the fine print.

Why do you need the Money?

The first thing you need to consider before even beginning to complete the application is to ask yourself if this is something that you absolutely have to do. The terms of the loan can be problematic so it is important to be sure you need the loan. When you consider the cost of the loans, you will find that you are generally paying a 1300% APR. Consider how badly you need the money and take stock of any other choices that may be available for you before committing to this financing option.

The Length of the Loan

Instant online approval loans are short term loans. The intention of the lender is collect their funds from your next paycheck. The lender will collect both the amount you borrowed, plus the interest. For example, on a $200.00 instant online approval loan, you can reasonably expect to pay $50.00 for the use of the money. That means that on the agreed date, they are going to collect $250.00 from your account. These loans are typically 7 to 14 days.

When You Cannot Pay

The lender will typically grant you an extension if you are not able to repay the loan in full on the due date. You will be expected to make at least the interest payment on the loan, and they will then grant you an extension until your next payday. The cost to extend the length of the loan can be somewhere around $250.00.  Review your agreement because the fee can be higher or lower, depending on your agreement. The fees continue to snowball, with every extension. It is important to pay off the loan as quickly as possible to avoid late fees.

If you do not pay the loan back as scheduled, the lender will pull the money from your bank account over and over again. The lender will assess their late fees, as stipulated in the agreement, and your bank will also apply NSF fees. The aforementioned 1300% APR will increase and you can end up owing hundreds or thousands more than you borrowed.

It is in your best interest to approach instant online approval loans with caution and to make sure that if you absolutely have to have this loan. 

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