July 31, 2025
Written by Rebecca Lake
Certified Educator in Personal Finance®
Certified Educator in Personal Finance®
Rebecca Lake, CEPF, has been writing about personal finance and business for nearly a decade. Her work has been featured on CreditCards.com, Credit Karma, Credit Sesame, and other personal finance sites.
Instant loans are fast-funded, short-term loans for a small amount of money.
Instant loans can be helpful when you can't afford a bill or have an unexpected expense.
Interest rates can be high, but are usually more affordable than payday loans.
Third-party brands and companies are mentioned for informational purposes only. Chime does not sponsor, endorse, or partner with any of these brands or companies, and they do not sponsor or endorse Chime.
Life is full of unexpected surprises – and not all of them are good. Sometimes, they can be downright expensive.
So what do you do if you are hit with an unexpected expense but don't have the cash on hand to pay for it? Instant loans could be an option.
Below, we'll walk you through what instant loans are, how they differ from payday loans, and how to get one.
Instant loans are small personal loans that you can get fast – and sometimes nearly instantly.
Lender decisions are often not based on your creditworthiness (or at least, not entirely); instead, online instant loans are usually available to members of a specific financial institution or credit union, with no credit check to qualify.1 Other factors, like account activity and balances, can help with lender decisions.
Instant loans are short-term loans (usually repaid within one to three months2) and may have higher annual percentage rates (APRs) than some other types of loans. Instant loans can help in scenarios when you need money fast, like:
You were expecting a tax refund but wind up owing Uncle Sam when you file your taxes.
You get into a fender bender and need cash to cover the insurance deductible.
You can't afford an emergency vet bill after your dog ate something questionable in the garbage.
Chime tip: There are other types of fast-funded loans, like car title loans and payday loans. For more information about payday loans, see the resources provided by the Consumer Financial Protection Bureau.3 Instant loans can be a safer and more affordable alternative.
An instant loan from a financial technology company may be only available to its members. You can launch your mobile banking app, log in online, or, if applicable, visit a local branch of your bank or credit union to get started.
If approved, your account may be able to be funded quickly with the amount you borrowed. Some lenders promise near-instant funding, but "instant funding [is] subject to your bank's delays".4
Once you receive your instant loan you'll then make payments, often biweekly or monthly, over the duration of the loan repayment term. By the end, you'll have paid back what you borrowed, plus any fees and interest.
Instant cash loans can be a huge help if you're in a financial pinch and just need a little extra cash to get you through to next month.
But there are some potential drawbacks to consider.
Fast cash: It's in the name – instant loans offer fast approval and fast funding. That way, you can get the cash you need when you need it.
Easy approval: You may be eligible to get instant loans even if you have bad credit and without impacting your credit. These institutions can offer instant loan approval by using other data sources that inform their lending decisions, meaning you could potentially qualify for a loan with bad credit or no credit at all.
Credit score boost: If the instant loan lender reports your on-time payments to the credit bureaus, you might see a boost to your credit score over time.
Better alternative: Instant loans are often a safer alternative to payday loans, whose interest rate equivalents can nearly reach 400%.3 Chime Instant Loans may even have an APR comparable to credit cards.5
Higher APR: Instant loans are fast and easy to qualify for, but there's a price to pay for the convenience. These loans often have APRs much higher than personal loans, though they are nowhere near as high as payday loans. Some may even have rates closer to credit cards.
Small loan amounts: Instant cash loan amounts are small – $500 is often the max amount you can borrow.1 If you need more money, you'll need to consider an alternative, such as a personal loan, a credit card with a higher credit limit, or a loan from a friend or family member.
Cycle of debt: Instant loans are helpful fixes, but if you aren't careful, they could become a bad habit. There is potential for you to borrow money because you can't afford a bill and then have to pay back what you borrowed so you're in the same boat, with the same bill, next month.
When you need money fast, you might be tempted to find a payday lender – but you may be able to get a much safer instant personal loan through your bank, credit union, or financial institution.
Here are some popular options for instant loans:
Chime® Instant Loans5: For example, if an eligible Chime member borrows up to $500, the loan can be repaid over three months with a flat $5 fee per $100 borrowed interest rate.1 Larger loans can be repaid over a longer period of six months.
Varo Advance®: Eligible Varo customers can borrow up to $5006, repaid over one month, with fees ranging between $1.60 and $40. There is an $8 fee for every $100 borrowed.6
Possible Finance®: Eligible Possible customers can borrow up to $5007, repaid over eight weeks7, with fees ranging from $10 to $25 per $100 borrowed, except in select states where borrowing fees are not a flat rate.8
Max borrowing amount | How much does it cost? | Repayment terms | |
|---|---|---|---|
Chime Instant Loans | $2000 | fixed interest amount of $5 for every $100 borrowed (5%) | Three months |
Varo Advance⁶ | $500 | $8 fee for every $100 borrowed (8%) | One month |
Possible Finance | $500 | Up to $25 for every $100 borrowed (up to 25%) | Eight weeks |
The application process for an instant loan will vary by lender, but in general, here's what you'll need to do:
Figure out how much money you need: Most lenders with instant loans only let you borrow a small amount. If you need a larger loan ($1,000 or more), look into personal loans instead – but note that eligibility requirements may be stricter, and getting the loan funded could take a few days.
Check your eligibility: Not every member of a financial institution may be eligible for the instant loan product. Determine if you're eligible before applying.
Submit an application: You can sometimes do this directly in a mobile app. Instant loans typically offer instant approval, without a credit check, and the money should be deposited into your account the same day.
Repay the loan: You won't have long to repay your instant loan, usually a few weeks to a few months. Stay on top of payments, including any fees and interest. Lenders may report your on-time payments to the credit bureaus, which can boost your credit score.
Instant loans come in many forms – cash advances, payday loans, car title loans, and even small personal loans that are funded and repaid quickly. That last option is a much safer alternative to traditional payday loans and can help you out in a pinch.
Trying to break the cycle of borrowing? Here are some ways to work from home and get paid instantly – even on the same day.
Chime® is a financial technology company, not a bank. Banking services provided by The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC.
Chime is not FDIC-insured. The Bancorp Bank, N.A. and Stride Bank, N.A. are the FDIC-insured members. Deposit insurance covers the failure of an insured bank. Certain conditions must be satisfied for pass-through deposit insurance coverage to apply. FDIC deposit insurance limit is $250,000 per depositor, per insured bank, per ownership category.
Chime Checkbook: While Chime doesn’t issue personal checkbooks to write checks, Chime Checkbook gives you the freedom to send checks to anyone, anytime, from anywhere. See your issuing bank’s Deposit Account Agreement for full Chime Checkbook details.
By clicking on some of the links above, you will leave the Chime website and be directed to a third-party website. The privacy practices of those third parties may differ from those of Chime. We recommend you review the privacy statements of those third party websites, as Chime is not responsible for those third parties' privacy or security practices.
Opinions, advice, services, or other information or content expressed or contributed here by customers, users, or others, are those of the respective author(s) or contributor(s) and do not necessarily state or reflect those of The Bancorp Bank, N.A. and Stride Bank, N.A. (“Banks”). Banks are not responsible for the accuracy of any content provided by author(s) or contributor(s).
APPLE and the Apple Logo are registered trademarks of Apple Inc. GOOGLE PLAY and the Google Play Logo are registered trademarks of Google LLC. Third-party trademarks referenced for informational purposes only; no endorsements implied.
This guide is for informational purposes only. Chime does not provide financial, legal, or tax advice. You should check with your legal, financial, or tax advisor for advice specific to your situation.
Information from Chime as of April 15, 2025: https://www.chime.com/newsroom/news/chime-introduces-instant-loans/
Examples include Chime Instant Loans (payback in 3 months), Varo Advance (payback in 1 month), Cash App Borrow (payback in 1 month), and Possible Finance (payback in 2 months).
Information from CFPB’s “What is a payday loan?” as of April 15, 2025: https://www.consumerfinance.gov/ask-cfpb/what-is-a-payday-loan-en-1567/
Example from Possible Finance as of April 15, 2025: https://www.possiblefinance.com/loan
Chime’s Instant Loans have no late fees or compound interest, just a fixed interest rate of $5 for every $100 borrowed, paid back in three monthly payments of $35.00 per $100 borrowed (29.76% annual percentage rate). As of April 15, 2025, LendingTree reported that the average credit card APR is 24.23%: https://www.lendingtree.com/credit-cards/study/average-credit-card-interest-rate-in-america/
Information from Varo Advance as of April 15, 2025: https://www.varomoney.com/cash-advance/
Information from Possible as of April 15, 2025: https://support.possiblefinance.com/hc/en-us/articles/9512671202829-Loan-Repayment-Information
Information from Possible as of April 15, 2025: https://support.possiblefinance.com/hc/en-us/articles/9542522187789-About-Possible-Loans
Third-party trademarks referenced for informational purposes only; no endorsements implied.
MyPay® line of credit provided by The Bancorp Bank, N.A. or Stride Bank, N.A. MyPay services provided by Chime Capital, LLC (NMLS ID 2316451).
Information from Possible as of April 15, 2025: https://www.possiblefinance.com/loan
Information from Chime as of April 15, 2025: https://www.chime.com/newsroom/news/chime-introduces-instant-loans/
Examples include Chime Instant Loans (payback in 3 months), Varo Advance (payback in 1 month), Cash App Borrow (payback in 1 month), and Possible Finance (payback in 2 months).
Information from CFPB’s “What is a payday loan?” as of April 15, 2025: https://www.consumerfinance.gov/ask-cfpb/what-is-a-payday-loan-en-1567/
Example from Possible Finance as of April 15, 2025: https://www.possiblefinance.com/loan
Chime’s Instant Loans have no late fees or compound interest, just a fixed interest rate of $5 for every $100 borrowed, paid back in three monthly payments of $35.00 per $100 borrowed (29.76% annual percentage rate). As of April 15, 2025, LendingTree reported that the average credit card APR is 24.23%: https://www.lendingtree.com/credit-cards/study/average-credit-card-interest-rate-in-america/
Information from Varo Advance as of April 15, 2025: https://www.varomoney.com/cash-advance/
Information from Possible as of April 15, 2025: https://support.possiblefinance.com/hc/en-us/articles/9512671202829-Loan-Repayment-Information
Information from Possible as of April 15, 2025: https://support.possiblefinance.com/hc/en-us/articles/9542522187789-About-Possible-Loans
Chime® is a financial technology company, not an FDIC-insured bank. Banking services provided by The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC. Deposit insurance covers the failure of an insured bank. Certain conditions must be satisfied for pass-through deposit insurance coverage to apply.The Chime Visa® Debit Card, the secured Chime Credit Builder Visa® Credit Card, and the secured Chime Visa® Credit Card are issued by The Bancorp Bank, N.A. or Stride Bank, N.A., pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa debit or credit cards are accepted. Please see the back of your Card for its issuing bank.
Chime Checkbook: While Chime doesn't issue personal checkbooks to write checks, Chime Checkbook gives you the freedom to send checks to anyone, anytime, from anywhere. See your issuing bank's Deposit Account Agreement for full Chime Checkbook details.
By clicking on some of the links above, you will leave the Chime website and be directed to a third-party website. The privacy practices of those third parties may differ from those of Chime. We recommend you review the privacy statements of those third party websites, as Chime is not responsible for those third parties' privacy or security practices.
Third-party trademarks referenced for informational purposes only; no endorsements implied.
Opinions, advice, services, or other information or content expressed or contributed here by customers, users, or others, are those of the respective author(s) or contributor(s) and do not necessarily state or reflect those of The Bancorp Bank, N.A. and Stride Bank, N.A. (“Banks”). Banks are not responsible for the accuracy of any content provided by author(s) or contributor(s).
This guide is for informational purposes only. Chime does not provide financial, legal, or tax advice. You should check with your legal, financial, or tax advisor for advice specific to your situation.
MyPay® line of credit provided by The Bancorp Bank, N.A. or Stride Bank, N.A. MyPay services provided by Chime Capital, LLC (NMLS ID 2316451).
To be eligible for MyPay, you must receive Qualifying MyPay Direct Deposits to your Chime Checking Account as set forth in the MyPay Agreement. A Qualifying MyPay Direct Deposit is a deposit from an employer, payroll provider, gig economy payer, government benefits payer, or other permitted source of income by Automated Clearing House (“ACH”) or Original Credit Transaction (“OCT”). Your MyPay Credit Limit and Available Advance Amount may change at any time. MyPay is a line of credit and available limits are based on estimated income and risk-based criteria. Eligible members may be offered a $20 - $500 Credit Limit per pay period. Your Credit Limit and Maximum Available Advance will be displayed to you within the Chime app. MyPay is currently only available to eligible Chime members in certain states. Other restrictions may apply. See Bancorp MyPay Agreement or Stride MyPay Agreement for details.
Option to get funds instantly for a fee of 3% of the advance amount ($2 minimum, $5 maximum) per advance, or get funds for free within 24 hours. See Bancorp MyPay Agreement or Stride MyPay Agreement for details.
Address: 101 California Street, Floor 5, San Francisco, CA 94111, United States.
No customer support available at HQ. Customer support details available on the website.
© 2013-2026 Chime Financial, Inc. All rights reserved.
Information from Possible as of April 15, 2025: https://www.possiblefinance.com/loan
Licenses
Chime Capital, LLC, Nationwide Multistate Licensing System ("NMLS") ID 2316451
Chime Payments, Inc., Nationwide Multistate Licensing System (“NMLS”) ID 2538752
Address: 101 California Street, Floor 5, San Francisco, CA 94111, United States.
No customer support available at HQ. Customer support details available on the website.
© 2013-2026 Chime Financial, Inc. All rights reserved.
Chime® is a financial technology company, not a bank. Banking services provided by The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC.