If you’ve been looking for a loan to sort out an urgent issue, you’ve probably seen the promises already. As you read this, there are hundreds of lenders offering payday loans instant deposit payable into your bank account at a certain interest rate. However, before you sign on the dotted line and get your sweet cash, you need to figure out one thing: is it legit?
The Truth about Instant Deposit Payday Loans
The truth is, it’s impossible to access the payday loan funds provided by a lender immediately you receive approval for the loan. Bear in mind, when the funds enter your account depends on both your lender and your bank. Hence, such a feat can’t be achieved. However, though lenders play a bit fast and loose with the term “instant deposit”, there is some merit to it.
Payday loans are the closest thing to instant deposit you will ever see in the loan economy. In fact, lenders will often deposit the loan amount into your account as soon as they are done with their background checks and are sure you can pay back the loan. That is why the only people who use the term “instant deposit” are those who offer payday loans. That being said, what are payday loans exactly?
All about Payday Loans
Payday loans are urgent, short-term loans of amounts in the hundreds of dollars that available to most people in the United States. The fact that the amount doesn’t exceed a thousand dollars means the sum is often small enough that the borrower is able to pay it back by their next payday.
Even if that’s not the case, payday loans are now far more flexible and varied than they were at inception. As a result, it’s possible to pay back a payday loan over as much as six months. However, such an arrangement may mean you end up paying a higher amount as interest. Nevertheless, if you’re taking a payday loan, you probably don’t have much of a choice.
Emergency Use Only
That’s because payday loans are only to be used in the case of an emergency. There is no such thing as free money, and if you can’t afford to buy articles of ostentation on your own dime, you definitely should not take out a loan for this purpose. This becomes more poignant when you consider the fact that payday loans may have higher-than-normal interest rates.
These interest rates are unavoidable because the payment of approved payday loans is as close to instant as you can get, and people with bad credit scores can get a payday loan. You read that right, even if you have a bad credit score, you can get a nearly instant deposit into your account. Of course, by instant we mean usually by the next working day, though it could be earlier than that.
In summary, payday loans offer nearly instant deposits but a truly instant deposit is currently impossible. If you have a bad credit score and need funds urgently, it is definitely your best option.