Express loans can be a convenient way to access extra cash in a pinch. Since express loans are typically for small amounts, they don’t require a long, formal application process like the traditional loan process. They also tend to have lower interest rates than credit cards, making them an appealing alternative.
An express loan is a cash loan, usually in quantities under $1,000. They are typically granted based on your monthly income and don’t require a credit check. These loans often have flexible repayment terms and competitive interest rates, so they’re not as financially crippling as payday loans may be.
However, even though express loans are quick and easy, you should use them responsibly. Taking on debt increases your monthly expenses, so only seek an instant loan if you’re truly in a tight spot.
Below, we’ll examine express loans in more detail so you know what to expect if you ever need one.
Reason 1: Quick Approval Process
Traditional loans often have a lengthy approval process during which a lender verifies your monthly income, analyzes your monthly expenses, and runs a credit check. It usually takes a few business days before the lender reaches a verdict, finalizes the loan agreement, and funds your loan.
In contrast, express loans have a speedy and easy application process. Usually, you can apply, be approved, and receive funding within 24 hours. Sometimes, you can even get instant approval after submitting an online application form with funds deposited into your bank account via direct deposit or Interac e-transfer within hours.
For example, with Bree, you can access up to a $250 cash advance within minutes. The service is available 24/7 and the entire process from bank verification to instant decision and automatic funding is done online.
Receiving your loan express can be advantageous when you need cash to cover a bill or put food on the table between paychecks.
Reason 2: Flexible Repayment Options
Another major perk of express loans is that they offer flexible repayment options. Traditional loans have a fixed term, meaning you’ll pay the same amount each month for a predetermined period. With an express loan, the repayment schedule is often customizable to suit your needs.
Often, lenders arrange your payments to coincide with your paycheck, making it easier to ensure you have the necessary cash on hand. Some lenders may break the payments into two or three instalments at intervals of your choosing.
Flexible repayment terms make it easier to balance loan repayment with essential expenses so you don’t repeatedly find yourself in a tight spot. Aligning your repayment schedule with your paycheck simplifies cash management and budgeting and alleviates financial stress.
Reason 3: Minimal Documentation Requirements
Personal loans and payday loans require extensive documentation to enable the lender to evaluate whether you’re a good candidate to borrow. Payday lenders may ask you to provide the following:
- Proof of income– usually in the form of pay stubs or a letter of employment
- Bank statement
- A permanent address
- Government-issued identification
- Permission to run a credit check
- Other personal information
Even if you have all of these items readily available, the time it may take to gather them and have them reviewed by the payday loan advisor may not be worth the effort, especially if all you need is a small payday loan to bridge the gap between paychecks.
Express loans require minimal requirements and documentation, which dramatically simplifies the application process. In most cases, all you need to provide is some paystubs or bank statements to receive your cash advance approval. Furthermore, government benefits are often accepted as valid income sources, so you can use your Canada Child Benefit, EI payments, and more to apply.
Reason 4: Availability for Individuals with Bad Credit
One of the biggest hurdles to accessing a personal loan is a poor credit score or insufficient credit history. Most lenders will not work with applicants with scores below 600.
Express loans are advantageous for individuals with a low credit score because they don’t require a credit check.
If you have a lower credit score, you may have yet to realize that loan options are available, but you can likely take advantage of cash advance loans!
Reason 5: Wide Range of Loan Amounts
Personal loan and payday loan amounts range widely, from $500 up to $50,000 in value. While this makes them a powerful tool, it can also lead to borrowers taking on larger loans than they need. This can become a tremendous burden and lead to more financial problems down the line.
Express loans are usually granted in amounts below $1,000, often only a few hundred dollars. These smaller loans can offer strong financial support in a pinch without becoming a long-term burden. They are also generally very quick to pay back and offer short repayment terms.
Individuals looking to fund large purchases may benefit from a personal loan. For instance, it could help cover the cost of a new refrigerator, an unexpected dental expense, or even a wedding. Spreading out these larger purchases over a longer time frame makes them much more attainable for many borrowers.
But if you need fast cash to cover an outstanding bill or buy a new cell phone in a pinch, a loan express is probably all you need.
Ultimately, having access to different loan options can be very convenient, depending on your circumstances.
The Bottom Line
Express loans are a great way to put cash in your pocket quickly. They have a fast application process, don’t require a credit check, and can align the repayment schedule with your paycheck cycle. This means repayment is automated, ensuring you don’t miss a payment.
While express loans are a handy tool, it isn’t wise to take on unnecessary debt, so don’t leverage these loans unless you need to.
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