Instant cash loans have become increasingly popular in the Philippines due to their easy application process and quick approval times.
However, like any financial product, they have their pros and cons. In this article, we will explore the advantages and disadvantages of instant cash loans to help you decide if they are the ideal loan for you.
Pro: Easy requirements for application
One of the biggest advantages of instant cash loans is the ease of the application process. Unlike traditional loans that require extensive documentation, instant cash loans only require a few basic requirements.
All you need to do is prepare your IDs, sign a form, and submit it. It’s important to ensure that the details you provide are correct as a one-time password is needed to submit the information.
Any incorrect details can result in your loan being rejected. Always review the information before submitting it.
Con: Short loan terms
One of the downsides to instant cash loans is that the loan term lasts only 7 to 30 days. While it’s possible to get loan extensions if you’re a repeat borrower, it’s important to ensure that you can pay back the loan on time or earlier.
For example, if you apply for an instant cash loan with a four-month loan term, make sure that you set aside cash specifically for it during that period. When you pay back the loan earlier, you may have the chance to receive better loan terms with lower interest rates.
However, instant cash loans come with short loan terms because of the low borrowed amount, which cannot exceed PHP20,000.00.
Pro: Quick approval times
One of the biggest advantages of instant cash loans is that you don’t need to wait for long approval times. Approval typically takes only 30 minutes, and the money will be disbursed to your bank account. Even people with bad credit can get the loan, although they may have to wait a bit longer. However, those with good credit history can get their loans approved immediately.
Con: High-interest rates
One of the biggest disadvantages of instant cash loans is their high-interest rates. The rates can add up to the loan even if you can pay it back. To avoid this, always check the rates before applying for the loan. You can get better rates and higher credit scores when you continue using instant cash loans in the same financial institution.
Instant cash loans have their ups and downs, but they remain an excellent option for individuals who need financial aid. However, it’s important to be responsible with your finances and carefully consider whether you can afford the loan before applying for it. Remember, it can be difficult to pay back a loan when you have no cash.
In conclusion, instant cash loans have their advantages and disadvantages, but they can be a great financial tool when used responsibly. They are easy to apply for, have quick approval times, and can provide much-needed financial assistance.
However, the high-interest rates and short loan terms can make them difficult to manage. It’s important to carefully weigh the pros and cons before deciding if an instant cash loan is the right choice for you.