Table of contents

Instant Payday Loans, Easy Guaranteed Approval

Kiara Taylor

Written by

Kiara Taylor
Katherine Fan

Edited by

Katherine Fan
Table of contents

It isn’t unusual for each of us to go through some kind of occasional financial downturn. If you find yourself suddenly facing an emergency expense with an empty bank account, you may need to take out an instant payday loan to tide you over until you get back on your feet.

An instant payday loan is a short-term loan that helps you meet your monetary needs during brief periods of personal financial crisis. Online lenders quickly review and approve most instant payday loan applications, often depositing the funds into your bank account within a day or two of approval.

Instant payday loan applications are streamlined and easy to complete, with limited eligibility requirements to meet. Once you have the money in your account, you can spend it immediately on necessary expenses.

However, it’s critical to keep track of your repayment deadlines so you can pay back the loan and all associated fees when they are due.

Here’s what you should know about instant payday loans, and how to apply for one if you need.

How Do Instant Payday Loans Work?

As a general rule, an instant payday loan is a short-term loan for a small amount of money, typically $500 or less. Instant payday loans come with high fees for the borrower, and the loan amount must be paid back within a short amount of time that will be established before you commit to the loan.

You’ll usually need to repay an instant payday loan by your next paycheck. However, this repayment deadline can be extended in some cases, depending on your lender agreement and other circumstances.

You can apply for your instant payday loan through an online application portal that will ask you to provide basic information, then wait to be approved.

Here are some typical features of instant payday loans so you can understand exactly how an instant payday loan works.

Small Amounts of Money

Most instant payday loans only advance small sums of money. The maximum amount of money you can request for an instant payday loan will vary from state to state, but most states limit the amount you can borrow from an instant payday loan. The usual limit is around $500, with some states allowing slightly higher instant payday loan amounts and others restricting borrowers to lower amounts.

Single Short-Term Repayment Process

Unlike longer-term loans, an instant payday loan typically needs to be repaid within a single payment. You will have to repay the loan in full once your next payday arrives, or when you receive your next payment from your pension or Social Security payment plan.
Your instant payday loan agreement will stipulate the exact date by which you need to repay your loan. In most cases, the loan repayment due date is between two and four weeks from the day you receive your loan money.

Personal Financial Responsibility

Keep in mind that your payday loan lender will not offer leniency if you cannot pay off your loan debts while juggling other financial obligations. It’s your responsibility to manage your instant payday loan repayment process along with your regular bills.

While lenders will generally not approve an instant payday loan if the requested amount exceeds the amount of your next upcoming paycheck, they will not take into account any other outstanding bills you will still be responsible for paying.

If you do not think you will be able to pay back your loan in full by the time you receive your next paycheck, you may want to reconsider applying for this type of loan.

You Will Guarantee The Loan In Advance

For most instant payday loan agreements, your lender will require you to provide a post-dated check that covers the entire balance of your loan including all fees and lender expenses. You will give this post-dated check to your lender before the loan funds are deposited into your account so the lender can cash the check once your repayment due date comes around.

Alternatively, you may be able to authorize your lender to enact an electronic debit for repayment, directly transferring the necessary funds from your prepaid card account or bank account. That way, the lender will be able to automatically guarantee that they will be able to access the funds you owe, even in the case that you fail to repay your loan on or before the repayment due date.

In rare instances, your lender will be able to extend your loan repayment due date so that you only have to repay the amount of the loan fees, not the entire loan amount. Or in some cases, you may be able to repay your loan in smaller quantities over an extended period. But make sure you read up on the specific types of loan repayment agreements available to you so that you feel comfortable with the terms before you apply.

Accessing Your Loan Funds

Your instant payday loan will typically be deposited directly into your personal bank account. In some instances, you may receive your loan fund by cash, check, or via a prepaid debit card.

You may very well have access to your cash on the same day that you apply. Depending on several application factors, your instant payday loan application may be granted in as little as fifteen minutes, which just about lives up to the “instant” name.

High Interest Rates

Instant payday loans are considered high-risk loans for lenders, since an instant payday lender does not take your credit background into consideration when extending the loan. To mitigate the impact of borrowers potentially defaulting on the loan, instant payday lenders typically charge very high interest rates and fees on payday loans.

Because of the high-risk factor for lenders and the short duration of the loan repayment period, you will likely have to pay high fees if you miss one loan repayment — much higher than you would pay on other types of loans.

Endless Cycle of Debt

The danger of taking out an instant payday loan is that you are hedging your bets against your next paycheck. If you aren’t able to meet your loan repayment deadline, you may need to take out another loan to pay back your first loan. In this situation, you quickly can wind up in an endless cycle of debt where you keep borrowing money in order to pay back what you already owe.

In this scenario, the majority of your paycheck goes directly toward repaying loans with high interest and fees, leaving you without the necessary funds to cover day-to-day living expenses such as rent, phone bills, electricity, and water. This can be a dangerous situation that winds up with you spending more money than you have in order to cover your previous loans and current expenses.

When Should I Apply For An Instant Payday Loan?

You should apply for an instant payday loan if you know that you will be short on cash in the immediate looming future, but when you also know that you will be able to pay off the instant payday loan in full within the designated repayment period.

Instant payday loans generally aren’t recommended as a long-term loan alternative. You should not apply for an instant payday loan in place of taking out a mortgage, for example, or in lieu of applying for a small business loan.

Instant payday loans are best used as a short-term fix to tide you over until the next paycheck arrives, especially if you know that that next incoming paycheck will include the full amount of the payday loan and can keep you from landing back in debt.

If you are experiencing continuous financial hardship and consistently struggling to pay your bills in a timely manner each month, you may want to seek out another type of loan to help you through this difficult period.

But if you are simply seeking a temporary influx of cash to tide you over for a short amount of time, an instant payday loan can be a viable option. Perhaps you have some unexpected expenses to pay for during this pay period, such as urgent home repairs or emergency medical care. Just make sure that you can pay back the full amount owed, plus any additional fees, by your repayment deadline.

What Are The Requirements For An Instant Payday Loan?

Most instant payday lenders have minimal requirements for qualifying loan applicants.

Basic Instant Payday Loan Requirements

To qualify for an instant payday loan, you will need to be at least 18 years old at the time you apply. You will also need to provide some form of proof of income as part of your application, as well as a valid form of identification. Finally, you’ll need to provide an active checking account.

You’ll also need to show proof of income, such as a paystub or bank statements showing consistent direct deposits. Regular income from Social Security or through a pension can count as a substitute for the proof of income requirement.

In most cases, you will not need to pass a credit check or explain your financial history to qualify for an instant payday loan. Meeting the four requirements set out above means that you have already satisfied the most basic requirements as set out by the United States Government Consumer Financial Protection Bureau (CFPB).

Applying For Your Instant Payday Loan

Applying for an instant payday loan is relatively simple, especially when compared with other loan application processes, since you won’t need to undergo a credit check.

These are the steps for acquiring an instant payday loan:

Double Check On Availability In Your Location

Before you apply for your loan, make sure that instant payday loans are legal in your state. Instant payday loans are currently legal in only 31 out of the 50 states in the United States.

Gather Your Evidence

If instant payday loans are allowed in your home state, you will need to gather several documents. Gather your proof of income, a valid form of identification, and proof of address so that you will be prepared to present your case to a lender.

Find A Good Lender

Research multiple lenders in order to find one with a good reputation. Look through Better Business Bureau ratings and online reviews to see what previous customers had to say, both good and bad.

Lenders offer different rates, terms, and conditions, so take some time to compare costs across different lenders to make sure you’re getting the best deal.

Look for an honest lender who is transparent about their rates and expectations, and is ready and willing to answer any questions you may have. A lender who provides evasive answers will not be a trustworthy partner in your loan repayment process.

Fill Out Your Online Application

Once you’ve found the right lender for you, you are ready to fill out your application. Most applications can easily be completed online in a short amount of time if you’ve gathered all the necessary documentation beforehand.

Wait For Approval

The approval process can be instantaneous or take up to several days, depending on the lender and the time period. As soon as your loan has been approved, the lender will deposit the requested funds directly into the bank account you provided in your application.

The lender may deposit your funds into your bank account the same day your loan is approved, or it may take several working days for the money to arrive.

Repay Your Loan

Make sure you note the repayment due date and pay off your debt by that deadline. Otherwise, you may be subject to paying extra fines, fees, or other penalties.

Benefits of an Instant Payday Loan

An instant payday loan offers access to quick funds that can help you pay for unexpected expenses, or tide you over until you receive the next paycheck.

Let’s take a look at some of the top benefits of an instant payday loan.

Instant payday loans are fast

It’s entirely possible to have instant payday loan funds sitting in your checking account within minutes of your application. Once your application is approved, your lender will deposit the money directly into your bank account.

Instant payday loan applications are easy

The application process for instant payday loans is straightforward. You simply have to fill out an online form, provide the few simple additional documents required, including proof of address, proof of income, and proof of identity. The whole process should not take more than a few minutes to complete, and does not involve any complicated sums or application processes.

Instant payday loans have minimal qualification requirements

Unlike many other types of loans, instant payday loans are easy and accessible to most people who meet the minimum age and income requirements.

Instant payday loan applications do not require a credit check

Instant payday loans do not require a credit check or background check. So you may be able to get an instant payday loan even if you have a history of bad credit.

Furthermore, your credit score won’t be impacted by an instant payday loan unless you fail to repay your debt in full by the due date.

Instant payday loans can cover a wide variety of expenses

There are no restrictions on how you use your instant payday loan funds. This means that once the money is deposited into your account, you can decide where and how to spend the money provided by this loan.

You can use your loan to pay for regular expenses, such as electricity bills or rent, or you can use the loan money to cover unexpected expenses, such as medical fees or emergency home repairs.

You can also use your loan to make essential purchases. For example, if you work remotely from home and your laptop breaks, you can use the loan money to quickly buy a new computer without missing out on any work.

Why Should You Get An Instant Payday Loan?

An instant payday loan is a good opportunity to receive an immediate influx of cash that can help you to cover sudden unexpected expenses while you wait for your next paycheck to arrive. Medical fees, tech repairs, home damages, or car repairs can all put a major dent in your short-term finances, especially when you have not set aside an emergency fund to help you prepare for this type of situation.

As long as you know for certain that you will be able to pay back your loan by the loan repayment deadline

Who Can Apply for Instant Payday Loans?

Almost anyone can apply for an instant payday loan. The requirements to apply for an instant payday loan are minimal, which is one reason this type of loan is so accessible to most people.

Instant payday loans aren’t legal in every state, so make sure that you will be able to apply in your home state of residence. Currently, there are 19 states, plus Washington D.C., where instant payday loans are not available.

In the remaining states where you can access this type of short-term high-interest loan, you will be able to apply regardless of your credit history.

FAQ

What is an instant payday loan?

An instant payday loan is a short-term loan that provides a small quantity of money for borrowers in immediate need. Instant payday loans must be repaid within several weeks, and typically come with high-interest rates and lender fees to cover the high-risk factor.

Do instant payday loans affect credit scores?

Instant payday loans do not affect a borrower’s credit scores. Credit reporting agencies will not know about the loan unless the borrower’s outstanding debt goes to collections, since lenders do not perform credit checks for instant payday loans.

What is the difference between instant payday loans and personal loans?

Personal loans can take as much as four or five days to arrive in a borrower’s account. Instant payday loans, in contrast, can be delivered in hours or minutes.

How do instant payday loans work?

Instant payday loans provide a small amount of money for short-term financial needs, with quick repayment terms and high interest fees.

Are instant loans safe?

Instant loans are safe when using a reputable online lender with bank-level security and encryption standards. However, borrowers should always take care to protect their personal data online and maintain responsible Internet security protocols.