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What Are You Allowed To Do With The Money?

What Are You Allowed To Do With The Money?

For instant cash loans, you typically need to find local lenders who will take and process your application in person, immediately. Local lenders can give you a chance to get the money right then and there, in cash or as a check.

You could go to a local credit union or bank where you have an account. These typically offer traditional installment loans with fast payouts when possible, although it’s not as easy to do if you have a less than perfect credit score. They’ll already know your financial/ Credit history since you have installment loans OR an account with them, so there isn’t much you can do if your credit report is unacceptable.

An exception to this is PALs (Payday Alternative Loans), which you can get from local credit unions. If you need a quick loan without the high interest of typical payday loans, these could be a good choice. Plus, places that offer these installment loans will often be more understanding of applicants with low credit scores.

PALs can generally offer individuals a quick loan up to $1,000 which will need to be paid back by somewhere between 1 and 6 months, depending on the lender. If you don’t already have an account with the bank, you should be prepared to open one with them to qualify. While you can’t have several of these loans open at once, you can have up to 3 in the space of 6 months. Plus, you’ll need to pay off your current loan before you can take out a new one.

Different types of loans and lenders will often have their own requirements that you will need to meet

For Payday alternative loans, credit unions can only charge for the application processing fee, which will often only be about $20-$30.

The Criteria Of A Loan

Typically speaking, you will need to qualify for a loan in order to get one. A good example of this is having info on a car you’re buying when applying for an auto loan, or a solid business plan before getting a business loan. This applies to essentially any loan of course, even ones like mortgages where you’ll need to have information on the house that you’re planning to buy on hand.

With this in mind, here are a few of the general requirements that can be asked of you, regardless of the loan type:

  • Employment & Credit history
  • Financial details (such as recent paychecks and your income)
  • Loan security (when applicable)
  • Name and contact information (such as email and address)
  • Proof of citizenship or residency in the US
  • Social security number(s)

Forms of government-issued identification, like a passport or driver’s license, are likely to be needed too. For the most part, if you have proof that you’re the person you say you are, you won’t have any issues.

When you receive money through a loan, you may have some limits on what you can do with it. Most personal loans are usable for any purpose you want, and don’t tend to have restrictions on what you can and can’t do.

This isn’t common among all loan types, though. With auto loans, you’re only allowed to use the money borrowed to buy a car. The same principle applies to most loans – you can’t use a mortgage to buy a car, or a student loan to buy a house (although, it could cover costs of student accommodation).

During the application process, you’re likely to be asked what you plan to do with the money. The answer might not affect your chances of getting a loan, but it could certainly be used to gauge how responsible you are.