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Instant loans are short term loans, commonly referred to as payday loans, that consumers can receive almost instantly. To get a loan, you must find a lender that offers instant loans and fill out an online application. After your application is approved, you will accept the loan and have the loan amount transferred into your bank account. While instant loans are not actually instant, many lenders are able to fund loans within 24 hours of receiving an application. Some lenders can fund loans in as little as one hour.

How to Save Money on Instant Loans

In certain circumstances, instant loans can be beneficial. When faced with an unexpected expense, applying for an instant loan might help you stay afloat until your next paycheck. In most cases, getting a loan is preferable to paying bills late or getting hit with late fees.

The problem is that instant loans are expensive. Most lenders charge a fee of up to $17.50 per $100 a person borrows, plus set-up fees. If you cannot afford to repay your loan on time, you will also be expected to pay a fee to lengthen the term of your loan. These fees add up quickly and can leave you with a very expensive loan.

To find the best instant loan, it is important to shop around. Payday lenders do not order credit reports on their borrowers. Therefore, shopping for a lender will not adversely affect your credit score. To begin shopping, apply with a few different lenders.

Once you receive an offer for a loan, carefully review the terms before accepting. Determine what fees you are expected to pay. Also determine how much the lender will charge you to extend the length of your loan. While you might have every intention of repaying your loan on time, you never know what will come up. Late fees are what get many consumers into trouble.

Instant loans are not meant to supplement one's income, nor should they be taken out for fun. Even if you get a good deal, expect to pay quite a bit for a loan. While shopping around will help you get the best loan, make sure to exhaust all of your other options before turning to instant loans.

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