If you’re looking to get hold of money quickly, getting a loan on the same day may seem like the answer to your problems.
It could be the case that you have even been made redundant, or you have some major repairs to carry out on your car.
Regardless of the situation that you find yourself in, getting a loan on the same day can give you access to cash when it is needed urgently.
The convenience of same day loans, however, usually come at quite a high cost.
While you can get your hands on a loan on the same day, there are some things to think about, especially including the short term and long term consequences.
What Are Same Day Loans?
Same day loans are quite easy to understand. They are a type of loan that if you are given access to it, you are afforded the money on the same day.
This can be very handy in the circumstance that you need money because of an emergency – this is why they are such an appealing form of credit.
Receiving your money on the same day, however, is not always 100% true. While there are a lot of lenders that give you access to money on the day you apply, there are some that will delay your payment till the next day or even longer.
Types of Same Day Loans
If you are really looking for a same day loan, there are a variety of options that you can choose to go for. Getting money urgently, could be good for your situation and help you out of a tight space.
Before you do so, however, you need to know the impact that they can have long-term and the fees that you have to pay. The majority of same day loans will come with interest rates that are fairly high. Down below are some of the same day loans you can expect to see.
Payday Loans
Payday loans are a type of short-term loan that will gift you with small amounts of cash, that are usually paid back when you are next paid yourself.
Because of the short-term aspect of payday loans, payday lenders usually look past credit scores or even if you can pay the loan back.
This means they are an ideal source of a loan, even if your credit is not so good.
As you may imagine, payday loans can have high fees because of the circumstances money lenders look past. APR on payday loans can have costs up to 400%, as claimed by the Consumer Financial Protection Bureau.
Was borrowing payday loans without having to go through a credit check may seem tempting, having access to this can be costly down the line. This is because you need to make sure you can repay your first loan on time. If not, you may roll your debt into a new loan entirely.
Title Loans
This type of loan is another loan that consists of small amounts of cash but high interest. They too can give you the funds that you need on the same day that you apply for them.
However, when you have a title loan, your vehicle is the collateral item that is used to ensure getting funds.
The lender of the loan will take the title of your car in exchange for lending you money. After you’ve paid the loan back, your title is yours again.
Once again, title loans are fairly costly and can come with a lot of risks. There are also companies that are willing to loan money out to you even if there is a loan already connected to your car. APR on these types of loans can be as much as 300%.
Pawn Shop Loans
If you need a quick cash injection, another way to do so is by taking an item of value to a pawnshop. When exchanging the item, the shop will gift you with an amount of cash that you’ve both agreed upon.
However, the amount that you are given may be significantly less than the item that you have let them hold. In repaying the amount, plus the fees attached, you are able to get your items back.
However, if you find yourself falling behind with money and cannot make the repayment, the pawnshop will sell the item to recover the costs. Interest on these types of loans is also quite high, with APR of up to 240%. Repaying these kinds of loans back can be difficult also.
Same Day Loan Alternatives
Same day loans are very effective for quick cash, despite some of their caveats. Depending on what you need, there may be an alternative route to go down before picking a same-day loan.
Credit Cards
Putting all expenses on a credit card may not sound like a great idea, but they can have other attributes which you may prefer. APR on a credit card is usually lower than on the same day loan.
However, if you use a cash advance from your credit card, the APR could be higher. Interest rates are not always guaranteed to be more beneficial, either.
Family or Friends
Asking your family or friends to help you out financially may be a bit difficult to do. However, someone you know might be able to give you a hand if they are in a good position themselves.
If you do go this route, you need to make sure that both of you are agreed on the interest in terms of repayment. However, if you are unable to pay them back, you can put a strain on the relationship.
The Reason for Same Day Loans
If you need to cover an expense, such as one for an emergency, same day loans can be very handy and are a quick way to get cash. It is very important to bear in mind that these types of loans often come with high costs.
But as long as you read the fine print, understand the loan terms and are confident in your ability to pay them back, same day loans can be a handy way to get quick cash.
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