Same-day online loans can help you get urgently needed money sent straight to your account within the same day you apply for it.
Being able to apply for an online payday loan and get approved right away, with the assurance of getting the money within hours of you sending your application to lenders, is perhaps the most peace-offering thought especially when you’re operating on a financial low.
Same-day loans can clear certain financial blocks and help you hit milestones you badly want to achieve before receiving your regular paycheck comes in. And even though they can be the friend that helps when you’re in need, they also present certain risks and disadvantages. Here, we take a broader look into same day loans and help equip you with the information you need prior to applying for them.
What a Same Day Loan is
A same-day loan is a type of personal loan where the borrower sends a loan application to the lender and the application gets approved that same day and the money is sent to the borrower’s bank account before the end of the day, or sometimes a few minutes after sending the application.
Typically, these types of loans are requested by borrowers who’ve gotten a serious need for money for a short-term problem that can’t wait until the day of the month they usually receive their payment from their income source.
The most common type of same-day loans is a payday loan, which offers the borrower financing options that can reach the amount of $5000. Online payday loans are simple and fast to get as online lenders approve and release the money fast.
However, as with everything good, there are always downsides. And for same-day loans, you’ll often get charged fees and interest rates that are slightly or extremely above the normal rates (depending on the type of same-day loan you pick and the lender you decide to get your loan from), due to their quick approval and little concern for your credit history.
For instance, if you decide to borrow $200, the lender may decide to charge you $20 to $60 in interest. If you calculate the interest rate, you may find that you’re paying an APR (Annual Percentage Rate) of around 400%. Moreover, if you find it difficult to pay your loan when it’s due, the lender can allow you to extend the repayment dates but at an extra fee.
Most borrowers find themselves requesting rollovers since the repayment dates are very limited, considering most due dates are 14 days after taking the loan. However, those borrowers who have good financial planning can pay their loans early and establish a good relationship with the borrower.
Other than payday loans, other types of same-day loans exist. Let’s have a look at that.
Types of Same-day Online Loans
Other types of same-day loans are:
Installment Loans
These are loans where lenders offer you a huge chunk of money at once which they expect you to pay in bits over an extended period, usually a few months to several years. The amount you can borrow with an installment loan is much higher than with a payday loan. Also, you don’t require to produce collateral for installment loans as lenders check your credit score to see how much of a good borrower you are in terms of paying back the loans you take.
That being said, when your credit score is low, the lender may choose to offer you a low amount and charge you high-interest rates. On the flip side, if your score is great, you can get a higher amount at a lower interest rate. It’s worth noting that while most installment loan lenders offer same-day loans, some may take more than a day to get funds to your account.
Car title loans
Car title loans, also called title loans, are loans that work in the same way as payday loans except that they require collateral from the borrower so that they can be approved. The collateral is the borrower’s car title. No credit checks are run by the lender here as the collateral gives the lender the confidence they need to be sure they won’t lose their money in the case where your credit is poor. This means that if you fail to make your loan repayment, the lender is allowed to sell your car and recover the money. The fees for processing title loans may go as far as a quarter of the loan amount every month and the APR can hit a high of 300%. You can be approved for a loan amount of around $25,000 and the repayment period may go for around 3 years or more depending on the amount you take and for how long you want to repay.
Other than the two mentioned types, other types of same-day loans are credit line cash advances and pawnshop loans.
How same-day Loans work
Applying for and receiving same-day loans should be an easy process for the borrower. If you’re borrowing for the first time, the following steps are all you need to take to apply for the loan:
Step 1. Decide which type of same-day loan you want. As mentioned earlier, there are several types of same-day loans. And the first step should be to think about the reason why you feel you need to take a loan and which loan type would best fit the emergency you have. If it’s a short-term emergency that you can easily handle with a small amount of money, then payday loans may be the way to go. If it’s a huge amount that you’d want to pay back over several months or years, an installment loan would be a great option. If you’d like to use your car title to acquire a loan, a title loan is what you should go for. Also, make up your mind about the exact amount of money you want beforehand to avoid getting tempted to borrow more than you need simply because you can. This approach can lead you to a financial pit.
Step 2. Fill in your details in the loan application form. Our application form is quite easy-to-work-with and intuitive. Our lenders only require you to give your personal information, disclose some details about your income, and provide some documentation to back that up. You can upload your documents as soft copies where needed for lenders to review them. Once you’re finished with the application, just press the “Submit” button and your application will be sent to our lenders. Even if you have bad credit and want to get an online loan, you only need to submit your application once and we’ll make sure it gets to multiple reputable lenders who are waiting to review it.
Step 3. Application review and lenders’ feedback. Our lenders will take a look at your application and check your details to determine if you’ve got everything correct if you have all the details provided and if you meet your requirements. They’ll do some calculations and considerations and then decide on whether you are creditworthy or not at that particular moment. Everything happens in minutes and you should be able to receive feedback from the lenders in under an hour.
Step 4. Choosing loan offers and sealing the agreement. If you get approval, you may get many offers from our lenders where you’ll get to choose the loan offer that fits you best based on your current needs. After that, you’ll review the terms and conditions of the offer you chose and you’ll sign the documents to complete your application. If you get a rejection, lenders will tell you why they found you not fit for their loan products and maybe you can rectify the existing problems and re-apply.
Step 5. Getting your money and repaying it. After the loan agreement, lenders will deposit to your account the agreed loan amount shortly afterward and you can withdraw the money and use it right away. From there, you’ll need to create a plan of how you’re going to repay it. If it’s a payday loan, you’ll determine when and how to pay after your upcoming paycheck arrives, and if it’s an installment loan, you should organize how you’ll be paying each installment, where the money will be coming from and how you’ll be sending it to the lender without fail.
The Required Documentation For Same-day Loans
Every type of same-day loan has its requirements. However, some basic requirements cut across all loan types. These include:
- An identity card like a passport, military ID, or driving license that’s been given by the government
- 3 to 6 months' pay slips or pay stubs
- Proof of address using documents from utility bills
- 3 to 6 months' bank statements
- Proof of income
Other requirements may be expected by the lender depending on their method of operation and the loan option you’re interested in. For example, you’ll be required to provide your car title, on top of the general requirements, if you want a title loan.
The Advantages
Opting for same-day loans comes with several advantages, which may include:
- Lenders don’t have high credit requirements
- Almost instant approval and funds release
- Quick and easy loan application process
- Easily accessible online
The disadvantages
Same-day loans also have a dark side. And some downsides you may expect when working with them are:
- Limited loan repayment period
- Lenders expect to you have a steady income to be approved
- Heightened risk of defaulting, requesting a loan extension, and getting additional charges
- Release of funds on the same day of application isn’t always assured
- High chances of getting into a debt spiral that can eventually destroy your life
- High APR, fees, and interest rates
Things to Keep in Mind When Considering Same-day Loans
To avoid risking your credit score, and your financial stability in the long run, it’s always a prudent move to first think through the idea of applying for a same-day loan or loans that give money instantly and how far it will push you forward without negative effects. You need to consider some factors and zoom in on some loan aspects to be sure you’re making the right choice to take the loan and that you’ll manage it well enough to get back on your feet shortly afterward.
Some of these factors are:
- The necessity to borrow and the opportunity cost of waiting until you get your regular income
- The gap the same-day loan will fill and how much that will improve your current situation
- All options can help you find the money you’re looking to get from the loan
- The reason why a same-day loan is the best option for you at that specific time
- Your ability to repay the first installment (if you’re paying in installments) without problems with the lender and without affecting your ability to cater for regular expenses
These questions will help you understand if a same-day loan is the best route for you and if you’re ready to handle its benefits and risks without taking a step backward in life due to it. After deep thinking and consideration, when you find that the loan does more good than bad, go for it. If not, you may want to consider other more effective options.
Tips to Have More Success With Same-day Loans Even With Bad Credit
To help you make the most of same-day loans while keeping the risks to a minimum, here are some rewarding tips you should consider working with:
Ensure you’re well-prepared before you apply for a loan
If you’re looking to have your application process take the least time possible, you’ll need to ensure that you have everything at hand and you submit them readily when the lenders ask for them. Being there to take away any roadblocks that may have your application delay will not only show your commitment to the lender but also how well-planned you are. Moreover, filling out every section of the application form accurately and providing updated documents will help fasten things up for you. Plus, you should remain available to answer any questions your lender may have as they assess your creditworthiness.
Work with lending networks to get more offers
You always want to have several offers from lenders so that you’re able to compare what each is offering and which option is the best one for you. And since sending an application to each online lender can be a very hectic process, you should consider sending your loan application through lending networks such as Cash Payday Loans which puts your application before the eyes of many reputable lenders who are highly likely to approve and give you a loan. You get to save yourself the hassle of spending time looking for lenders and sending your application to each of them.
When you have options, go for an installment loan
Payday loans and other short term loan options may seem quite lucrative due to their much quicker approval rates than installment loans but the latter offers more benefits than the former. For instance, payday loans have higher fees and interest rates than installment loans, which means more money to be paid by payday loan borrowers. Installment loans, however, allow you to pay less in APR and monthly installments toward clearing the loan.
The little loan amounts per installment allow you to manage your finances well and still keep up with your payments. However, don’t go for lengthy installments as that extreme move may also make your loan accumulate more in interest charges. Some good balance with installment loans is how most borrowers can use loans to keep pushing their lives forward without trouble.
Understand the loan agreement very well before signing
Most people get tempted to sign away their financial stability very fast without realizing it when a loan offer is presented to them. The thought of receiving money in the next few minutes when they previously didn’t have any and were stressed, makes them skip the most essential part, reading the agreement and understanding the lender’s expectations of you when they give you the loan.
It helps to have a good understanding of the amount of money the lender expects from you as repayment, the exact date the money is needed back, and the charges included. If it’s an installment loan, knowing how much you’ll be paying per installment, the number of installments, the due date for each installment, and if it flows well with when you receive your regular income can save you big time. Read the agreement twice or thrice if you have to but ensure you understand what you’re committing yourself to.
Same-day Loan Substitutes
Depending on your financial problem, other options may present better opportunities for you compared to same-day loans or payday loans for an emergency. Some of the alternatives you have for consideration are:
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Family and friends. The first group of people who come to mind when you’re in great need is your family and then your friends. You can get a more flexible loan from a family member or close friend that you can pay back with more comfort and that you may not have to wait for hours to get the money. Keep in mind that it’s good to treat a loan from friends and family as a loan from a strict lender so that you seek to pay back faster and maintain good relations with them.
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Personal loans from credit unions and traditional banks. These types of loans are often unsecured, meaning you don’t require collateral to get them. It may take up to seven working days to get the money. Before you can be approved, the lender may choose to perform credit checks to help them understand your creditworthiness.
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Donations from charitable organizations. You can also approach religious and spiritual organizations that are popular in your area for helping the community members financially. If you present yourself confidently and humbly, express your need, and make the leaders in the organization understand that you really need financial help and that some things may fall apart if you don’t, can help you get the money. If you get it, it’s also good to volunteer to help here and there in the organization even if they don’t ask you to do that, as an expression of gratitude.
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Sell some of your house stuff. Although it’s not advisable to sell or pawn your house items, it may be a better option than getting yourself in debt when you know you don’t have any upcoming paycheck to repay the loan. Choose the least used item in the house like old but well-functioning equipment and instruments, and post them on websites like Craigslist and you may get a good offer on them that can help you settle the financial distress you may be having.
Frequently Asked Questions (FAQS) About Same-day Loans
Here are the questions most borrowers and potential borrowers ask together with their answers:
How do I heighten the chances of getting money the same day I apply?
First, seek to send your application during the morning hours of working days (preferably before or around 10 a.m.). When you apply during holidays, you can’t be guaranteed same-day approval and disbursement. Second, have all the documents needed for the loan type you want to get ready with you even before you apply. Get all the soft copies and have several copies of each document saved in different places on your devices. Third, apply for your loan through platforms like Cash Payday Loans that let you reach many lenders within a short time. It’ll help you have your application sent to a number of lenders before it’s late. And the more lenders you reach out to, the higher your chances of getting a loan.
How do lenders run credit checks on borrowers?
Credit checks help to reveal more information about the borrower. Two types of credit checks exist, soft credit checks and hard credit checks. Soft credit checks are the most popular type with payday loan lenders as they don’t hurt the borrower's credit score. Hard credit checks, on the other hand, do have an impact on the credit score. Lenders run hard checks through credit bureaus like Equifax or FICO.
How do you choose the right lender for your loan?
You only need to compare what each lender is offering you and aim for the one with the most favorable features, such as a same-day payment. Look at the Annual Percentage Rate (APR), loan terms and conditions, and other added benefits, like fast approval or more time to repay a loan, that each lender has. Aim for a lender who has a low APR, better terms, and more added benefits.
When is it appropriate to take a same-day loan?
When something happens that requires you to have money right away and the time for your payment hasn’t arrived yet. For example, if your car breaks down and you need to be traveling in a few hours for an urgent event, and you don’t have the money for the repair, same day cash advances or loans can be of great help. They’re also good during those instances where you don’t want to disturb your close friends and family or you want to avoid your credit card.
Do you recommend I apply for same-day loans?
It varies with your situation. A same-day loan can pull you out of a tight spot but it can also get you in a tight spot if you’re not well prepared to repay the loan as per your agreement with the lender.
What is APR?
APR (Annual Percentage Rate) represents the percentage interest per year a borrower is required by the lender to pay for their loan.
Are guarantors a necessity to get same-day loans?
Not quite. In most cases, you won’t be required to have a guarantor with you to assure the lender their money is safe. Most same-day loans are unsecured. However, some lenders may choose to demand that you provide a guarantor if your credit is bad but you still need a loan, your income is unstable and they don’t have confidence in your repayment abilities.
Are same-day loans available for unemployed people?
Yes. You don’t have to be employed to get a same-day loan. As long as you have an income source that you can show proof of to the lender, and the income source can help easily repay the loan, you can get approved for a loan.
Does Cash Payday Loans expect borrowers to pay to apply for same-day loans?
No. Borrowers apply for loans through our platform completely free. We connect you to lenders and maximize your chances of getting a loan without expecting anything in return from you. Our lenders compensate us when you get a loan but the compensation is not at an extra charge on your side. The borrower’s side isn’t affected at all.
Do lenders charge an extra amount for same-day loan processing?
No. Many lenders have same-day loans as a product that they offer borrowers free of charge. The interest rates may be high but there’s no specific charge on the borrower for them to receive the money the same day of their application. Nonetheless, since different lenders have different operation methods, you may find that others charge some extra money for that.
Are there guaranteed same-day loans?
No. While there’s a high possibility of getting a same-day loan if you have all the requirements, there’s no guarantee that every application will get approved. Guaranteed loans used to be a common marketing practice by untrustworthy lending organizations as a way to attract more borrowers. Since all lenders have to consider certain factors before approving you for a loan, you can’t be guaranteed that you’ll be approved even before you apply.
Between credit cards and same-day loans, which are the best?
It depends. Same-day loans usually charge processing fees and an APR of above 100% while with credit cards, you may pay low-interest rates on a monthly basis which can bulk up over time.
Is a bank account necessary for a same-day loan?
Having a bank account through which lenders can send you the loan amount you applied for as well as allow you to repay the loan smoothly goes a long way.
Do same-day loans leave a negative effect on my credit score?
No. Same-day loans can actually improve your credit score over time. Some lenders send their loan reports to credit bureaus. And when you pay your loan faithfully and make it easy to do business with a lender that submits their reports, credit bureaus will consider these reports to update your credit score, and it’ll have a positive impact on the score.
How do I repay my same-day loan?
Your lender will disclose the methods they’d like you to use to repay your loan. Some may ask you to allow them to request your bank to send them the due amount on the due date. Others may ask you to let them choose the amount and the date to reach out to your account and withdraw funds as part of your repayment. Make sure to confirm your lender’s preferred method of repayment as you review the terms and conditions of the loan.
What if I can't repay my loan?
Repaying your loan is crucial to keeping a good credit record with your lender for future needs. However, if you can’t manage to pay back the loan by the set due date, you should contact your lender early and let them know that. The lender may provide a solution like extending the repayment period. However, such solutions may attract more charges.