How to Get an Instant Personal Loan

An instant personal loan is a product generally offered through payday loan companies, allowing borrowers to meet urgent short-term expenses without the time-consuming hassle of dealing with banks. The amount of money you can get with an instant personal loan varies from lender to lender, but is generally capped at a modest maximum of a few thousand dollars.

Difficulty: Moderate

Instructions

Things You'll Need:

• Proof of employment or income
• Collateral (may be needed)

Get an Instant Personal Loan

1. Determine how much money you need to get. When dealing with an instant personal loan, less is more, since interest rates are extremely high, and there isn't much you'll be able to do to get them lowered.

2. Gather your paycheck stubs or whatever other means you have of proving your monthly income. Make copies of these if you're applying to get an instant personal loan through an online lender.

3. Find an instant loan lender by shopping online or calling around to the various payday lenders in your community. Ask about interest rates, repayment terms and the application process. Some lenders won't require a credit check or any collateral beyond proof of income, while others--particularly those offering lower interest rates--may have a more discriminating approval process.

4. Make sure you ask about and understand any additional charges that may apply to your loan beyond the basic interest rate that will be applied. Some lenders demand disbursement fees on instant loans.

5. Complete the application process. Some lenders will require your bank account information so they can deposit your loan directly into your account. Others may offer cash-only loans.

6. Manage your loan wisely by ensuring you use the instant advance for the purpose for which it was originally intended. You want to avoid having to secure additional loans while your original loan is still outstanding, lest the high interest rates associated with instant loans spiral you deeper into debt.

7. Pay back the instant loan as quickly as you possibly can to avoid the long-term bite of the high interest rate. For this reason, it's best to deal with lenders who offer terms that include penalty-free early repayment.

Tips & Warnings

• Check to see if the company you work for offers an employee loan program. While it may take a little longer to be approved, you'll save big on the interest and repayment can be taken directly off your paycheck.
• Instant loans are offered at very high interest rates. They are not recommended except in financial emergency situations.