Direct deposit loans are loans that you can receive directly to your bank account. Cash advances, installment loans, and other direct deposit loans can be used to help pay for a car, mortgage, or unexpected short-term expenses. The advantages of getting this type of loan include an easy application process and same-day funding. Here are some of the top benefits of direct deposit loans that you should know about:
1. Easy application process
The application for a direct deposit loan typically only requires you to answer a few questions. You may even be able to fill out the application online. You’ll share a few documents, submit your application, and receive a quick decision. Keep in mind that you’ll also give your debit card information or your bank routing and accounting numbers to receive the money.
Direct deposit loans often come with less strict requirements, so you may not need good credit to get approved. Oftentimes, the main requirements are that you have to be at least 18 years old, have a government-issued ID or social security number, have a regular source of income, and have an active bank account.
As long as you have sufficient income and you’ve not previously defaulted on another loan, you’ll likely be approved. The amount you can receive will usually be limited to your current income, but this can make it easier to pay the loan back and help prevent you from going into debt.
2. Get same-day funding if approved
In many cases, you can receive funding from a direct deposit loan as soon as the same day you apply or within 24 hours. This can be beneficial for circumstances when you need to pay for something soon, such as a car repair or an unexpected medical bill. A direct deposit loan can help keep your expenses covered until your next paycheck.
3. You don’t need good credit
Traditional lenders usually require you to have good credit to get approved for a loan. But luckily, many direct deposit lenders approve people with poor and fair credit. They’ll consider factors in addition to your credit score when deciding whether to approve you, like income, employment history, and current debts.
4. No collateral is required
Many direct deposit loans are unsecured loans. That means you don’t have to put your personal property up as collateral to back your loan. But keep in mind that while you won’t lose your property if you don’t pay back your loan on time, you may face other consequences such as a hit to your credit score and collection calls.
5. You can use the money for anything
Direct deposit loans usually have no restrictions on how you can spend your loan. You can use it for any expense you need to take care of, including a car repair or medical bill, groceries, and rent. Being aware of these benefits can help you decide whether a direct deposit loan is a good idea for your current financial situation.
Notice: Information provided in this article is for information purposes only. Consult your financial advisor about your financial circumstances.