A lot has been said about instant loans and many of them talks about its disadvantages. However, if instant loans are really that bad, why do many people patronize these up to these days? If they do worsen the person’s financial instability then why won’t the government stop its practice?
Instant loans are often times used as the last resort when a person has no other loan option. One reason is because it doesn’t require a lot of paper works on the part of the applicant. Another obvious reason why many people seek for this type of financial loan is the fact that credit institutions do not look after the applicant’s credit history when approving the loan. This is true to bad credit loans that are intended to help out people who are in dire need for instant cash.
The usual reason why instant loans critics abhor these types of loans is the fact that they come with very high interest rates. Hence, it looks like credit institutions who offer these services are abusing the perilous circumstance that their applicant is experiencing. People like them will surely be stuck in a grave situation when it becomes impossible to pay for one’s debt.
However, many contest that instant loans are far better than its regular loan counterparts because of their easy application process with speedy approval. These loans allow you to get the money that you borrowed within the day that you have applied for it. This can be very significant when you are rushing to pay a bill due for the day or finance the medical expenses of your love ones.
However, the fast application process of instant loans has its own flaws as well. This can create the need to apply for the loan for impulsive individuals who can’t wait to give in to one’s luxury and wants. Easy credit opportunities will eventually bury the person into further debt. Instant loans are also famed for their “no credit history check” requirement. However, if this part will be omitted during the screening process, then how can these people be helped out in paying their loans when they even neglected to fulfil their financial responsibilities to other loan companies?
On the other hand, regular loans have their sets of pros and cons as well. Since these are considered as secured loans, you can never apply for them unless you have the collateral to back up your payments once you find yourself unable to pay your debt. It also considers your credit history to assess your sense of responsibility to pay your debt. Though this can be daunting for a person who needs the cash right away, the fact that this is will somehow measure your ability to pay as scheduled. These loans are a lot cheaper as well when it comes to interest charges.
After all that have been said, which do you think is better; instant loans or regular loans? Obviously, the answer will depend on how urgent does the person need cash as well as the conditions which qualify him or her to apply for instant loans.