Instant personal loans are usually more about finding a quick way to get money and not worrying as much about finding the cheapest lender. That obviously rules out banks and other traditional lending institutions because they follow an application and credit check procedure that can days or even weeks in some cases. Assuming that you have no cash to access on a credit card and no friends or family who can offer help, then the best answer is probably a pay day.
While there are variations among lenders, payday loans generally offer a small loan in a short period of time without the need for a credit check. Instead, payday lenders rely on borrowers who have jobs with at least a minimum salary, as well as checking accounts. In exchange for taking the risk on these types of loans, lenders charge very high interest rates. Borrowers are required to pay back the loan, plus interest, by the time they receive their next paycheck. If you can pay back the entire amount, the loan process ends. If not, there generally is a fee for another period of time to pay off the loan.
There is no universal cost for a payday loans, but you should expect a very high interest rate. That’s the reward payday loan companies receive for dealing in relatively risky financial transactions. These loans, which usually are no more than $500 to $1,500, cost as much as $25 per $100 borrowed. And some companies will include a loan or processing fee on top of the interest rate.
Here’s the rub with many of these loans. While it is common to see advertising for 1-hour loans, it often takes a 24 hours for the loan proceeds to be directly deposited into a borrower’s checking account following approval. What takes an hour or less is the approval process.