So you’ve decided to apply for an instant cash loan. When you start shopping around for a lender, it’s important to protect your interests, so ensure you have a clear idea in your mind of what you want, and come armed with the right questions. To help you get the facts you need to make the right decision, we’ve prepared a list of questions for you to bring with you that can help you sort the right lender from the herd. Read on to find out more.
How certain of being approved am I?
This is one to ask yourself before you start the application process. Having a failed loan application on your credit report only hurts your long-term borrowing prospects, and can potentially negatively influence banks when you go looking for a loan for a larger purchase such as a car or a house. Being certain that you meet the lender’s requirements is a great way to protect your credit score.
How fast is ‘instant’?
Some companies may advertise ‘instant’ loans, but only approve and fund the loan on the same day for a very select, elite group of clients. If you don’t meet these stringent credit requirements, it can sometimes take days or weeks to get the amount you need – which can make a huge difference when you really need that money instantly! Discuss your circumstances with the lender and make sure you qualify for the fastest possible funding.
Are the advertised terms and conditions different from the ones for me?
On that note, it’s important to closely scrutinise all of the terms and conditions of the loan agreement just to ensure that they’re not different from those that were advertised. Similar to loan funding times, often only those with excellent credit scores will be granted the lowest advertised interest rate or the most favourable term, so be diligent.
How will the lender pay me?
Is it a line of credit or a lump sum? If you need $2000 and the amount is provided in increments or over a period of time, that could be as bad as not having it at all.
What are the repayment terms like?
Can you make partial repayments or must it be a lump sum? How do they accept payment? How long after a due date does the loan become delinquent? Knowing all of this upfront can save you a lot of confusion and heartache.
For consolidation loans, is the new interest rate preferable?
If you’re using an instant cash loan to consolidate various other debts into one repayment, are you paying more in interest now than you were before between all of the unconsolidated debts? This could take some hard calculation, but it could potentially save you money.
Is it a fixed or variable interest rate loan?
One of the most important questions, is the interest rate guaranteed to stay the same for the entire term of the loan, or will the interest rate be adjusted to account for fluctuations in the market?
Knowing the answers to these questions before signing could save a lot of time and hassle. If you have any questions, speak to one of the loan consultants at Fast Money and get the answers you need to make the smart decision.