Welp MagazineWhen you need a loan, you don’t have time to wait weeks before you find out if you qualify. In an emergency, you need cash in your hands as fast as possible.
Direct deposit loans can help with that goal, even if you need money right away. With an automated process starting your application, these online cash advances rely on tech to speed up the borrowing experience and deliver funds quickly.
What is a Direct Deposit Loan?
Before going any further, let’s answer the question of the hour: what are direct deposit loans? They’re short-term personal loans or advances that arrive straight into your bank account without needing to cash a check.
Short term personal advances are designed to help with unexpected, temporary expenses when you don’t have enough savings or room on your credit card.
When you sign a contract for one, you’ll receive a term or repayment schedule that outlines two important details:
- Due Dates: This tells you when you must repay what you owe, plus interest and fees. How frequently you make these payments depends on your terms. While payday cash advances are due back in one payment, installment loans are due back over multiple payments.
- Payment Size: Regardless of timing and frequency, most direct deposit advances have fixed payments. This means you’ll pay the same amount at each installment over your term.
What Are the Benefits of Direct Deposit Loans in an Emergency?
Emergencies are time sensitive. Maybe you have engine trouble with the car you rely on to get to work, or perhaps you slice open your finger while cooking dinner.
A trip to the mechanic or walk-in clinic isn’t up for debate, nor is your responsibility to pay them. If you can’t pay them upfront, these creditors want you to pay them back as quickly as possible.
Speed is one of the greatest advantages of using direct deposit loans in an emergency, and it all comes down to automation.
Financial institutions that automate the following steps can fast-track the lending process, eliminating red tape that could slow down your funds.
1. Automated Applications
Most online options are available through digital applications hosted on a lender’s website 24/7. This delivers a one-two punch to your borrowing timeline
For one, you won’t have to wait until a lender opens to fill out your paperwork like you would with in-person options. You can fill out an application as soon as your emergency strikes, even if that’s 3 a.m.
For another, many lenders automate the underwriting process, letting powerful AI check your financial profile against its borrowing requirements. If you meet these requirements, you’ll find out if you qualify within a matter of minutes.
While the timing of the approval process may vary from lender to lender, it’s usually faster because of this qualifying round.
2. Automated Deposits
Once approved, a lender uses the bank information you supplied in your application to wire the money straight to this account. You won’t have to fill out more paperwork to accept this transfer, nor will you have to visit a physical location to pickup a check.
Eliminating these steps means you’ll get your money faster. Just how fast depends on your lender, as well as your bank’s hold policies on deposits. If things line up perfectly, you might get hooked up with instant direct deposit loans.
Bottom Line
You can’t always wait patiently for money to arrive in an emergency. When you need cash fast, research direct deposit loans to see if they meet your timeline.
