Sometimes when you’re looking to borrow money, speed is the most important factor in your final choice. All providers have different standards for their turnaround time for loans, but the type of loan you choose can make a big difference as well. Out of the options available to most people, bad credit loans are undeniably the fastest and most universally useful of all. Today, we’ll be taking a quick look at the different types of loans you can get and what determines the speed of the service that each one can give you – by the end, it will be clear that bad credit loans are the best choice for borrowers who are intent on getting their money as fast as possible.
Option 1: The Old Way
Borrowing money is a very old practice that probably dates back to long before the invention of writing tools, but at least within living memory, the oldest way of lending is a completely manual process. You still had to be investigated for creditworthiness every time you applied, but lenders had to settle for an approximation of that made up of whatever they could learn from things like pay stubs and bank records. This meant filling out a whole ream of forms by hand every time you wanted to apply for a loan, and that the resulting paperwork would then have to be processed manually as well. All of these things take time and must be done with the full attention of a living person, also relegating the processing part of this procedure to business hours when the loan outlet in question was staffed. If you applied on a Friday afternoon, it would often be several days before your application would even start to be worked through.
Needless to say, there is no slower way to borrow money than the old-fashioned method. Between the time spent actually writing things down, the processing time constraints, and the need to physically move information from one place to another, some unlucky people may not have even needed their loan anymore by the time they heard back about whether or not they’d been approved for it. It was the first way of doing things and, for a while, the only way of doing them, but it has faded from prominence remarkably since those days. This method of lending and borrowing is becoming much less widespread now that we have collectively developed the technology for better alternatives.
Option 2: Online Borrowing – Installment Loans
The old way is unquestionably slow, but thankfully, it’s swiftly becoming far less common as a lending method. Instead, online loans are taking over, and that’s to everyone’s benefit. When you get your loans online instead, lenders have the opportunity to use automation to their advantage. By doing this, they can cut down on a lot of the steps that would usually require a human’s direct attention (and with them, the time that those steps take to carry out). No more waiting for someone to be free and then to actually do the work of processing your application – most of it will be done on the spot by automatic processes. A human will still see and sign off on the final loan agreement, but that’s really the only time they need to get involved, and that alone changes things for the better time-wise.
Because these loans are still large and there is still a lot of risk involved, though, the reduction in the waiting period won’t be as dramatic as you might have hoped. The provider you apply to still has to conduct rigorous checks of your income, credit history and more in order to make sure that you’re a safe bet, and all of that takes a lot of time. You’ll hear back sooner, but it often won’t be for at least one full day, and many times it will take significantly longer. As much of an improvement as that is, you can do better. If you want to really maximize your potential gains in this area, you’ll have to look into specific types of online loans that accelerate things even more.
Option 3: Online Borrowing – Payday Loans
Perhaps the very fastest option out there in terms of speed is to apply for an online payday loan. Payday loans are not only much smaller than their previously discussed counterparts (installment loans), but they are also explicitly intended for fast access with few barriers or hold-ups. They aren’t specifically bad credit loans, but they are often offered to and accessed by people whose credit is poor. There’s less risk to the lender because even people who default on their loans will only cost them a small amount, so they’re often willing to approve almost anyone for these products. This leads to less time spent poring over the particulars of applications and thus a shorter response time. Many of them will get back to you in far less than 24 hours; in fact, one single hour is a fairly common estimate window.
There’s one big caveat attached to this route, however. This option is only a viable one for you if you need just a small amount of money – meaning a few hundred dollars at the very most. If you require any more than that, the amount you’ll find being offered here is unlikely to be enough to meet your needs. Since getting enough funding to allow you to accomplish whatever you had in mind when you decided to borrow is obviously the primary concern during this process, that rules out online payday loans as a realistic possibility for you. There is, however, a very similar option that might allow you to be approved for a larger amount; we’ll be discussing this in the next section centered specifically on bad credit loans Canada.
Option 4: Bad Credit Loans Canada (Also Online)
If payday loans won’t do the job but you still need speed above all else, you have one last appealing option that you could consider: bad credit loans that you can contract online. What makes this type of loan so great for these purposes is that because it is aimed at people who would usually fail a credit check regardless, many lenders who offer loans like this simply don’t bother with those checks at all. Online loans that don’t perform a credit check can be applied for, reviewed, approved and paid out in virtually no time at all. By skipping over a major part of the vetting process that usually happens when someone applies for a loan, this type of loan can get things done much more smoothly and cut down drastically on the time the whole thing takes. Modern bad credit loans combine some of the best aspects of all the types of loans we previously discussed, and the way in which they cut corners is their greatest strength.
If you really need to minimize the time you spend waiting for approval and/or your money as much as possible but need a little more cash than a payday loan will provide, this type of borrowing is your absolute best bet. As a side note, though, you should be aware that as convenient as bad credit loans are, they are also some of the most expensive options out there as well. In some cases, you could end up paying double or more in interest than what you would if you had chosen a pickier type of loan. You’re trading incomparable speed for very undesirable rates, so make sure you give that bargain some serious thought before you make up your mind to apply for a product like this. It may turn out that you don’t need to put as much emphasis on getting your money quickly as you thought you did and you might be able to go with a less pricy option after all.
What Constitutes a True Speed Emergency?
Knowing that bad credit loans can get you your loan money as fast as possible is one thing, but knowing when to exercise that option without taking too much of a toll on your wallet is another. We all want to make speed a priority when we borrow, simply for the sake of the convenience it gives you to know your money will be in your hands in so short a time. That’s a nice idea and it would be great if all loans were equally fast, but that is not the case. In order to get your loans processed more quickly and your money sent out to you as fast as possible, you’ll have to give some things up, and that may not always be worthwhile. As we’ve stated above, bad credit loans are very expensive options in spite of their extremely swift nature, which means they should never be your first choice unless you have some pressing reason why you really need the money now. Generally, these reasons will fall under one of three broad categories:
- You have a deadline to meet – Overdue bills are no joke, and things like tax bills can sneak up on you and demand your money unexpectedly and on relatively short notice. If you don’t pay them by the time you’re supposed to, your bills will only become more expensive over time and more drastic actions may be taken (think repossession or getting your electricity cut off), so it may be worth it for you to do whatever it takes to get that money fast.
- Someone is counting on your money – Deadlines don’t only apply to you. If you’ve promised to help a friend or a loved one out financially for some specific purpose that happens to be time-sensitive, you owe it to them to do your best to uphold that promise. You may, however, want to clarify with them whether the situation really is as urgent as they had led you to believe. They may also be confused as to what kinds of expenses can and cannot wait.
- Someone’s life or health is at stake – When someone’s well-being is on the line, no price is too high to put an end to that situation. If some fast money is going to make a huge difference in a person’s life (maybe even save it, if we’re talking about something like paying a medical bill in a foreign country), the urgency is definitely justified.
There are other situations in which going for the fastest option may be appropriate, but those three guidelines cover most of the possible eventualities. Think about where your current situation falls before you decide that you really need that kind of velocity in your loan. If it’s not actually urgent and the difference will be as small as a few days anyway, it’s not worth paying the extra money simply to speed things up a little.
Find Your Bad Credit Loans In a Flash
If you’re in such a hurry to get your money, the last thing you want is to spend even more time looking around for a lender before you ever start your application. Bonsai Finance can help you to make sure this doesn’t happen to you. Browsing potential lenders from our safe, secure and easy-to-use website is the best way to get your search for bad credit done. There are plenty of possible options for you to choose from, but you can rest assured that all of them will get you your money fast, just as you want them to. The only differences between them are things like terms and interest rates, all things that you want to have working in your favour of possible. That’s why it only makes sense to do your homework and let us help you sort out which of the many offers for bad credit loans floating around is the best one for your needs. That way, choosing to prioritize speed doesn’t have to mean sacrificing everything else.
Here are some other interesting articles from out website:
Personal Bad Credit Loans: What You Need To Know
How to Choose a Good Lender for Personal Loans for Bad Credit
How To Get Bad Credit Loans | What You Need To Know