For someone who needs money fast, lenders that offer instant loan decisions are appealing.  If you have bad credit but need money quickly due to a financial emergency, instant loan approval allows you to apply for a loan and get the money in time to stave off whatever emergency you are facing.

Instant loan decisions are important when you have an urgent need for financing to pay the rent or keep your utilities from getting shut off.  In most cases, the lender doesn’t care what you are using the money for.  They only care that you will be repaying it when the loan comes due.  Even people with bad credit can obtain financing using an instant decision loan.

Bad Credit Loan Approvals

Most people who apply for an instant decision loan have bad credit.  Many of the lenders who offer these loans target people who can’t get other loans, so it makes sense that the requirements are not as high as for other types of loans.  Instant loan decisions are often available for payday loans and loans offered through a pawn shop.

Instant Payday Loans

Payday loans are short-term loans for small amounts of money.  Most payday loans are not over $1,000.  The actual amount you can borrow depends on your income.  You need to be working full-time and at least 18 years of age in order to qualify for one of these loans.  In order to get this type of loan, the lender requires the customer to write a check that is dated for when the loan is due and made out for the full repayment amount, including interest and fees.  The total cost to borrow $100 is usually around $20-25 for one month.  This is quite a high fee, so you should only take out this type of loan if you have a true emergency.

Borrowing from a Pawnbroker

For those who can’t qualify for payday loans, another option is getting a loan from a pawnbroker.  In order to get one of these loans, you must own something of value that the pawnbroker can hold onto until the loan is repaid.  If you don’t pay, you lose the item you used for collateral, and the pawnbroker can legally sell it in his shop.  Items that are often accepted by pawnbrokers include gold and silver jewelry, musical instruments, and electronics.  The pawnbroker will determine the value of your collateral and then tell you the maximum amount that you can borrow against it.  Pawnbrokers offer instant lending decisions with no credit check or income verification, but the interest and fees on these loans are high.