Small Instant Loans

A small instant loan can get you out of challenging situations without making you go broke, and if you play your cards right, you’ll be able to get the money as quickly as possible.

In this article, we’ll let you in on how small instant loans work, their requirements, and potential risks, so stick around.

Applying for Small Instant Loans

A small instant loan is a type of unsecured personal loan that’s either approved or refused almost instantly instead of traditional loans that may take weeks for a decision to be made.

There are certain occasions when you might need money as fast as possible, like medical emergencies and unexpected bills. In that case, an instant loan would be your best bet.

Many online lenders offer small instant loans. Applying for an instant loan online saves you the hassle of going to a physical place, like a bank or financial institution, to apply for the loan. What’s the point of applying for an instant loan if you’ll have to wait till the next day to visit the lending entity in-person, anyway, right?

The application process is usually quite simple; all you have to do is fill the online application form with all the required details, and once it’s approved, you should be able to get the money transferred to your account on the same day.

In some cases, a customer service representative may get in touch with you if any further clarifications or missing details are required.

Advantages:

• Easy application process
• Fast money transfer
• Available through online lenders
• Doesn’t require collateral
• Flexible terms and payment plans

Disadvantages:

• The interest rate can be high, depending on your credit history

Small Instant Loan Requirements

Here’s a quick overview of the standard requirements needed to apply for a small instant loan in Australia:

• To be an Australian citizen or a permanent resident of Australia
• To be 18 years old or older
• To have a stable job with a regular income for the past 90 days
• To have a good credit score
• A working telephone number and email address

Please note that these requirements are mandatory, even for online lenders. It would help if you also kept in mind that some lenders may have additional requirements.

Can You Apply for a Small Instant Loan With Bad Credit History?

It’s a well-known fact that even small instant loans will require a credit check. However, small loans don’t need an impressive credit score, so your chances of getting approved are high, but there’s a catch.

If your credit score is too low, you might be required to provide additional documents like bank statements. In some cases, you might need to have a guarantor with a better credit score to cosign the loan agreement with you so that in case you default on the payments, the guarantor will have your back.

Also, be wary of loan sharks offering guaranteed approval loans – such loans don’t even exist. All lenders are obliged by law to evaluate the borrower’s ability to make their loan payments on time. Based on that evaluation, the lender will either reject or approve the application. If approved, the lender will offer the borrower the most suitable loans for their situation.

If you want to know whether you can trust a specific lender or not, you can check the Australian Securities and Investments Commission (ASIC) registers to see if the lender’s name is there.

Alternatives

Applying for a small instant loan isn’t the only way you can borrow money. Here are some other ways for you to get money quickly:

Credit Card

If you have a credit card, you can use it if your credit limit allows.

Unlike instant loans, credit cards have the advantage of offering you a grace period that lets you pay the loan’s amount in full without additional interest fees.

This can be a great option if you’re 100% sure that you can repay the borrowed amount in full in the next month. However, if you keep missing the payments, your debt will keep on increasing with interest fees.

Borrow from a Credit Union

Borrowing from a credit union is an excellent alternative to instant loans. However, you won’t be able to borrow from a credit union unless you’ve already established yourself as a trustworthy member.

Final Thoughts

Alright, now that you’re fully aware of the ins and outs of small instant loans, it’s time for you to make a decision.

Take a few moments to assess the situation carefully and think about whether there are any other ways you can get money quickly. If a small instant loan seems to be your only option, make sure that you don’t borrow more than you actually need and create a simple plan of how you’re going to settle the payments to prevent yourself from drowning in debt.