Need fast cash? Fortunately, with the help of non-traditional financial institutions, you can now get small loans approval fast. No need to apply for small loans in banks and wait for days to weeks to get approval because non-traditional or online financial institutions now approve small loans applications in as little as one day!
What Are Small Loans?
Small loans, also called fast cash advances or payday advances, are unsecured loans offered to those who need fast funds. Small loans are unsecured loans simply because they do not require the borrower to present a valuable asset as collateral. They also do not require borrowers to have excellent credit rating. In fact, lenders do not check borrowers’ credit rating. Most lenders only require the following:
1. Proof of address
2. Proof of income
3. Birth certificate
4. Proof of citizenship
For as long as you can present these, you may easily obtain small loans from online lending companies and get approval in less than 24 hours. You do not even need to personally go to the lending company office to get the money because most lenders these days deposit the money into your bank account the following day. The processing is also done online.
How Small Are Small Loans?
The amount you can borrow through actually depend on two factors:
1. Where you live
2. How much you earn per month
Depending on how much your state requires, most lending companies in most states offer not more than $1000. In some states, residents can only borrow a maximum of $500.
When You Should NOT Opt for Small Loans?
Small loans can be a good financial solution in many circumstances but are NOT recommended for the following purposes:
1. Purchase of expensive things such as jewelry
2. To go on an unnecessary vacation
3. Purchase things that are not necessarily needed
4. To start a business
Why? The reason is simple. Small loans charge high interest rate. Because they are unsecured type of loans, borrowers get to pay interest rates that are higher than on secured type of loans offered by banks.
When You Might Need Small Loans?
There are various situations that may call for small loans and these include:
1. If your next payday is still far and you urgently need fast cash to fix your car or house
2. If your next payday is still far and you do not have money to buy groceries
3. You or your family has had an accident and you need urgent cash to cover the hospital bills while you are still waiting for the insurance company decision.
4. You need to pay for some bills soon. Instead of waiting for your credit scores to drop due to delayed payment, getting small loans is recommended.
How to Apply?
Ready to apply for small loans? The application process is simple. All you need to do is find a reputable online lending company, fill out their online application form, and send the required documents online.
As mentioned, you do not need to personally visit the lending company’s office because most lending companies that offer small loans only process applications online. These online lending companies will contact you via the internet or phone, and once the application is approved, you can have the money in your bank account the same day or latest the next day.