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What Are Same Day Loans and Do They Help You?

Posted March 26, 2020 by EasyFinance.com to Finance 1 0

Same day loans are, as the name suggests, loans where the borrower gets the cash on the same day that he applied for the loan. It may sound surprising but yes, many lending companies and lenders claim that they can give you money on the same day you requested it. Same day loans are also known as same day payday loans or emergency loans because people that avail of them usually need it for an emergency. 


Same Day Loan, Who Are Eligible For It?


There’s no rigid rule and no strict eligibility criteria for applying for a same day loan. Anyone can apply as long as you satisfy several conditions: You must be at least 18 years old, a resident of the country where you’re going to get a loan, and you should also have a current account.


Can Someone With No Credit Score Or Bad Credit Still Apply?


Even with bad credit, a person may still qualify for some same day loans like secured loans, online title loans, or payday loans.

For payday loans, your credit history and credit score may not matter to most lenders at all. Payday lenders usually only require a state-issued ID, proof of income, and an active bank account during the loan application process. So, even if someone has no credit history at all or has a less-than-perfect credit score, he may still get the money he needs.


Can Someone Apply For A Same Day Loan Without Any Guarantor? 


Yes, someone can get a same day loan without a guarantor. However, applying with a guarantor means you can receive extra benefits from the lender, which usually comes in the form of a lower interest rate. But, again, that doesn’t mean you can’t apply for it.


How Will A Borrower Receive The Cash Same Day?


There are several ways a borrower can get the money he requested immediately or at least almost immediately (within an hour or more).

  • Receive Money In The Form Of Cash - Lenders that have storefronts can disburse money to borrowers in the form of cash.

  • Wire Transfers And Bank Wires - Same day loan providers can also transfer the funds through wire transfers and bank wires. It’s essential to note, though, that it can take up to several hours before the receiving bank shows that the wire proceeds are already in the recipient's checking or savings account.

  • Receive Money On Your Debit Card - If you own a debit card, both online and storefront lenders can put the funds directly on it. 

  • Same Day Or Instant Automated Clearing House Transfers - Some lending companies also make instant ACH transfers. The borrower must make sure that his bank offers this option as it requires a three-times-a-day schedule for settlement. That means the bank must have the ability to cater to and process outstanding requests three times a day.


Can Same Day Loans Help You?


Yes, same day loans can help you in many ways since you’ll get instant cash that you can use to solve pressing financial conditions. Below is a closer look at the benefits of same day loans.

  • A Hassle-Free Application Process - Getting approval isn't a big deal in same day loans, especially when you choose online lenders. The application process is easy and straightforward. All you need to do is to provide the required information correctly, and if the loan provider finds everything is ok, you can immediately get approved.

  • Fast Response Time - Applying for other loans can be a hassle, especially if you urgently need cash. Some lenders for these types of loans respond too long and, once they respond, the processing of your application takes days and weeks. Fortunately, same day loan companies, especially online lenders, are known for responding fast to clients.

  • Getting The Fund Is Easy - Traditional loans require lots of paperwork before you can get the much-needed money you've requested in your loan application. Of course, that won't help as you try to stable your conditions instantly. Same day loans, however, bring quick funding access to clients.

  • Easy Repayments - Same day loans got specially designed for short term purposes. They don't work for the long term. Borrowers typically repay the loaned amount within a month, so it's less of a burden than other types of loans.


Risks Of Same Day Loans


Of course, like any other type of loan, same day loans also come with risks. They are the following:

  • Higher Costs - The annual percentage rates of interest in same day loans can be higher, even higher than other types of loans out there. It’s also essential to take note that same day loans can incur additional fees like charging for instant transfer, which usually happens when the funds will be sent directly to your debit card. This is true for both storefronts and online lenders. 

  • Same Day Loans Could Reduce Your Credit Score - Of course, this shouldn’t be a concern as long as you’re going to repay your borrowed money on time. However, in instances where you fail to pay the loaned amount back, your credit history gets hurt badly. That’s because there are alternative credit bureaus that monitor whether or not you have outstanding cash advance loans, payday loans, same day loans, and other debt. On the bright side, repaying on time will help you build a positive credit history.

These risks also come in other types of loans, so they’re something that you shouldn’t really be worried so much about. Such risks don’t take away the fact that same day loans are still one of the best options when you’re currently facing an emergency expense. There are also alternatives to same day loans that you can consider, such as cash advance through your credit card and the traditional personal loans. It all depends on your preference and the urgency of your situation.


The Bottom Line


There can be numerous solutions available when you need cash quickly. Same day loans are only one option, but they are relatively the most hassle-free and straightforward option you have. When choosing a same day loan provider, check with storefronts and online lenders, and determine who can provide you with funds more quickly to meet your needs.

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