With the spiralling costs of daily needs, leading lives with the mere salary of a person has become very difficult. This leads to applying for loans from financial institutes or the use of more from credit cards, also referred to as “plastic money”. These loans attract additional interest rates and if not paid back in time, the interest along with the principle amount accumulates into huge debts.
When a debtor is unable to repay his loan on time, his name will feature in a bad credit history record. Such a condition is called a bad credit loan. In such cases when the debtor applies for other loans through the normal procedure, a check of his credit history will lead to his application getting rejected. A bad credit history will stop his loan from getting approved and might put him further in financial distress.
How can instant approval help in overcoming bad credit loan?
When you apply for a regular loan, the application moves further for processing only after some basic checks are done. Of the various aspects that are verified, the credit history of the debtor is the most important one that would decide the fate of the application and the amount of money disbursed as loan.
Instant approvals help in overcoming the bad credit history of a person. These loans help in overcoming financial inadequacy without having to declare your credit history. All bad credit factors like bankruptcy, missed payments, repayment defaults etc are accepted by the instant approval loans. These loans are therefore helpful in meeting the emergency financial problems of the customers.
Besides this, there are many other reasons for the popularity of instant loans.
1. The loans get easily approved.
2. Processing of the loan takes much lesser time than that of normal loans.
3. The repayment day varies from 14 to 31 days.
4. These loans act as suitable source of funding.
5. These loans do not require any collateral.
The instant approval on bad credit loans however attracts greater interest rates. The other negative feature of these loans is that they are available only for shorter periods of time.
Conditions applicable for instant approval loans
The bad credit loans get instant approval on the following conditions –
1. The applicant must be above eighteen years of age.
2. He should be a citizen of the country.
3. Should have a valid existing account.
4. Should be employed and earn at least minimum wages as specified by the law.