• January 23, 2021
  • admin

Financial subjects are always prone to the incomplete knowledge and myths add to it driving people in the wrong direction. It is true that now we have flexible and advanced online lending solutions that are easy to obtain. One big gift from this next generation online lending is the ‘instant decision loan’. You can also it ‘instant approval decision loan’. It is a category of short-term loans that take less time to process, and after applying for the approval, the decision comes in a jiffy.

Unfortunately, some myths about instant decision loans make people misinterpret their actual nature. But not to worry, here we are breaking the misguiding perceptions about them.

1.     Instant decision loans always get approved 

Indeed, the approval rate of such fast loan options is always high. It is up to 98% to 99%. But that should not give the borrowers the reason to take it for granted and apply with any financial background.

  • No matter how small or big it is in amount, every loan product is subject to an affordability check. It means you cannot just expect approval just because it gives an instant decision.
  • You should always have a stable income and record of timely paid bills and debts in the last 6 months. There is no escape to this condition because every lending choice adds an affordability factor.

2.     You need to search separately for instant decision loans

You know what, the instant approval is a feature, and due to the emergence of FinTech, it has added with every short-term loan.  It means, whether you are taking unsecured personal loans, short-term business loans or text loans, the approval conclusion will be immediate.

  • Instant approval decision loans are not a separate loan but an additional facility available with short-term loans.
  • The direct lending that occurs online can do online verification of financial details. It is why it can reach faster to approval decisions.

3.     There is an additional cost for poor credit people

Such myths usually arise due to the wrong word circulated by the brokers. To keep a hold on the people with poor credit score, they present a bad image of the lenders. But, in reality, they are using it as a trick to take their own commission.

  • Sometimes the broking companies mention to the borrower that he may have to pay a high additional fee to get a loan with bad credit. To prevent that, the broker can help attain funds at a much lower fee. In reality, no genuine lending company such as FocusLoans take any extra cost or fee.
  • The low credit people are prone to rejection, and it is why they sometimes assume things on their own. They believe that they have to compensate for the weakness of their poor credit situation with a fee to make the lender take the risk. But it is never a case with a fair lender.

4.     Instant loans have prepayment charges

Unfortunately, this myth is related to many other types of loans, in fact, all kinds. It is also a myth that survives on people's unwise attitude of accepting things as they are. No, this should not be the attitude. On should always question things that sound annoying and weird and also very normal.

  • With time, the finance industry has become more customer-friendly and has removed many conservative practices. Yes, still there are some finance companies with the less liberal approach but not the direct lenders. In fact, ‘no prepayment charges’ is among their prime features.
  • There should be no such charges, but it is always better to first confirm from the finance company. Before you take things forward or even apply for a loan, why not just leave a query or call the customer care number and confirm.

5.     Unemployed people cannot get funds on instant approval decision

Again a prevalent myth that does not exist at least nowadays because now anyone with a strong repaying capacity in the current times can borrow money.

  • It can indeed be difficult for any loan company to rely on the repaying capacity of the borrower. However, with proper proof of a regular income, this can be done quickly.
  • Unemployment benefits are also considered the income, showing them while applying for the funds if the loan amount is small. Otherwise, add any other income to meet the affordability criterion of the finance company.

The above myths can spoil your chances of fund approval. Next time when you apply for funds for any short-term purpose, do not forget to check the above myths. A borrower should always make an informed decision, and by knowing the reality behind the myths, you see the other side of the coin. Half knowledge or wrong knowledge is always dangerous. Keep the myths away from your financial life, and you can see the prosperity come unhampered.

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