Same day loans are available from different financial organizations such as banks, online lenders, and credit unions. Similar loans that release cash on the same day of application are also available. However, you have to further scrutinize it because of the relatively high-interest rate and risks. Examples of these same day loans are those you can get from pawnshops or cash advances in some credit cards.
The Distinction of Online Same Day Loans
- The loan application can be made online, through a web site, mobile app, or phone call.
- Relatively short and straightforward application process taking just minutes or a couple of hours.
- Absence of extensive credit, home, and employment validations.
- Submission of requirements can be performed online with no condition of personal appearance.
- When approved, funding is released within the same day in contrast to other loans that take several days or weeks before the money is handed to the applicant.
- No credit checks, making it appealing for those with a low credit rating or those still establishing their reputations.
Sources of Online Same Day Loans
Payday lenders provide a person with the opportunity to pay their loans on the next payday. These types of lenders offer the same day application release of funds. This type of same day loan is beneficial during unforeseen instances such as the delayed release of salary.
However, be wary that some payday loans have a higher annual percentage rate (APR), reaching almost 400%. Although some countries have passed some laws that significantly impacted the interest rate of payday loans, reducing it to nearly 260% APR. The high-interest rates for payday loans are because of the fact that this type of loan is usually offered to persons with poor credit. Also, credit checks are generally not completed.
This type of loan enables the borrower to repay the loan amount plus interest in installment during a set period, usually ranging from three to five years. Various personal loan providers offer online applications with same day funding. This type of same day loans is the most desirable due to its reasonable interest rates that amount from 6% to 36%.
Credit card companies provide cash advance services enabling their clients to withdraw money from an ATM, bank account, or even a supermarket counter. Online facilities and apps are becoming a prevalent method for cash advance applications. You simply log in to your credit card online account and avail of the cash advance feature. A processing fee is usually charged, which can either be a fixed amount or a percentage of the loan amount. The interest rate for cash advances is generally higher as compared to the interest incurred when making purchases.
Things to Consider When Applying for the Same Day Loan
Although Online Same Day loans are appealing because of its convenience and quick turnaround time, it is essential to think of the following before proceeding with your application.
- Financial Status: Consider your financial situation and if you can make the repayments. The cash you may get now may provide you with a level of convenience at present, but it is also essential to plan on the repayments.
- Purpose: Everybody has their reasons for applying for a loan. Even if they need cash is urgent, designate a time to evaluate if the loan is worthwhile. When the borrowed amount is depleted, will you not feel any regret about taking the credit? Is the interest you obtained amenable and fitting on your loan’s purpose?
- Fees and Interest Rates: Research on the fees and the interest rates offered by various loan providers. Ensure the transparency of these fees as well. Additionally, be mindful of the type of payment they impose, some provide interest rates while some apply a fixed charge. The difference makes it a bit challenging when comparing loans from different lenders.
- Loan Requirements: Even if the application is online, some lenders require some documentation to be submitted or for you to meet specific requirements. Have the essentials ready to ensure that you would have a smooth transaction and that you’ll have the funding on the same day.
Requirements for Same Day Loans
The following are some of the basic requirements to qualify for online same day loans. Do note that lenders have varying demands and criteria.
- Active checking account
- Personal bank account
- Proof of income
- Regular income in the last 90 days
- Valid identification
- At least 18 years of age
- permanent resident or citizen of the country
- Active mobile number and/or email address
Online same day loan is truly a convenient manner of getting the cash you need at the latest time possible. It is appealing because of the lenient credit checks and the simple application requirements. Nevertheless, one must still analyze his capability of repayment and the purpose of the loan. It is also recommended to research and compare, as various lenders have different offers and interest rates or fees.