Instant Money Loan

An instant money loan can be one of the options for a person needing cash immediately for an unforeseen situation. One of these types of lending agreements is not available at a bank because banks are concerned about handling depositors' money in a secure manner. Getting fast currency implies that a credit check may not be an important factor in such a lending agreement and so that will also rule out a credit union as a viable source of getting an instant borrowing agreement. These types of lending agreements are, in fact, a high risk financial venture because those who need such a lending agreement of this manner are possibly not good money managers and may potentially default on this loan arrangement. "Lay up for yourselves treasure in heaven, whether neither moth nor dust doth corrupt and where thieves do not break through nor steal." (Matthew 6:20)

When the word instant is applied to the word loan, a credit check is not part of the process, and because the credit check process can often take longer than a few minutes, the instant money loan becomes a high risk borrowing agreement which implies a high rate in interest for a short term loan. In many states, lending companies offering a quick borrowing agreement allow as much as thirty to fifty percent interest rates on these loans, sometimes known as pay day loans. Usually these lending agreements are for two week periods, with allowances up to fifteen days in some instances. While there are no credit checks made for these kinds of lending agreements, a person must have a current bank account and a regular job, proven through a paycheck stub. Payback dates are then figured on the dates gleaned from those paycheck stubs.

With seventy percent of all Americans living from paycheck to paycheck, implying that personal savings are almost non-existent, the reality of running into an emergency not foreseen should not be surprising. Medical issues, broken appliances, mechanical failures with cars, and bills falling at odd times are all reason why someone might need a quick borrowing agreement. This type of loan agreement is also becoming very popular outside the United States. In the global economy that is now in a state of malaise, getting credit has become very difficult to obtain, so an instant money loan is very desirable. But there is a very dark side to this type of lending agreement that has helped lead to add the word predatory to lending practices vocabulary. 

So predatory have some quick lending companies become that states have begun to rule their interest rates as predatory and put caps on the rates that can be charged. In Ohio, many of the instant money loan companies have already gone out of business citing the state's ceiling on interest rates for these types of lending agreements. In the past, consumers could choose a flat rate of fifteen dollars on a lending agreement involving one hundred dollars, but if the consumer could not repay in time, a new lending amount could be issued, and if none of the loans were met, an annualized rate of three hundred and ninety one percent interest would be placed on that account. In the United Kingdom, interest rates on a thousand dollar two week instant money loan could run between three hundred and sixty percent all the way to seven hundred and forty percent. On that thousand dollar borrowing agreement, someone might have to pay back as much as seventy four hundred dollars for the privilege of using a thousand of the lending company's dollars!

The Department of Defense in the United States has pressed for rules to cap instant money loan companies at thirty six percent for military personnel. With all the regular stress on military families in this day and age, the reality of these families being thrust into economic chaos over a few instant money loan agreements suddenly costing thousands of dollars to repay is sad to consider. But many people have no other place to turn in the ever increasing expensive world in which all dwell. Some states prohibit the suppliers of these instant loans from issuing another loan to cover the first one not honored with payback on the due date. If a person is really bent on using a company providing a quick borrowing agreement, some important things need to be considered. First, the actual cost of the loan should be spelled out on paper before signing. Secondly, can this loan be paid off on time when the due date arrives and thirdly, be very careful of those who offer quick borrowing agreements through the paper or on the Internet because these lenders may not be licensed and a scam could be lurking in the wings.

Someone once wisely said that God is not a vending machine that can provide every whim that suddenly stirs our fancy. He is certainly interested in His children's welfare but He does not cater to desires that are meant to feed our ego, pride, or pleasure buttons. Scripture maintains that none of God's children goes begging for food which is a real comfort because beggars probably don't have accounts at an instant money loan company for a two week borrowing agreement. That translates into a comforting truth: God doesn't want His children relying on predatory lending companies for their source of needed supplies, rather He wants and longs to be our one and only source of everything we need in life. While everyone in the world is a creature of God, only those with a personal daily relationship with Jesus Christ are His children.