Same Day Loans
Fundamentals of same day loans and how to apply for them
Life is so unpredictable and thus its requirements. Nobody knows when an emergency situation would crop up in life. Unfortunately, most emergency situations are followed by financial crisis to cope with which people often need to borrow loans. In fact, in present economic scenario, one can hardly find any person who has never taken out a loan. Borrowing a loan is not as easy as it seems; especially if the money is needed urgently. Conventional lenders like banks or credit unions often consider and check several criteria before lending money to a borrower and as a result, the process of loan approval becomes a lengthy one. Therefore, the idea of borrowing loan from a bank or credit union may not work, when someone needs a quick loan. Fortunately, there are some lenders that offer same day loans to the borrowers with urgent need of cash.
Same day loans can be defined as small loans that an individual may take out while waiting for the next payday. These loans are also called as payday advance or payday loans. Such loans generally range from 100 USD to 1000 USD. These loans usually come with pretty high interest rates. To stop rapacious lenders from charging abnormally high interest rates, the state governments impose some rules and regulations regarding the interest rates that the lenders must follow while determining interest rate on a same day loan.
Same day loans may range from 100 USD to 1000 USD, but mostly they are for about 300 USD. These loans are usually paid in full on the due date. However, for bigger loan amount, the borrowers sometimes choose, if lawful, to roll over same day loan for longer. Although there are rules governing the amount a lender can charge, yet lenders sometimes levy even 15 USD for every 100 USD. So it is necessary that a borrower deals with a company that charges lower interest rates.
Since same day loans are often charged with very high interest rates, they lead to higher rate of bankruptcy. To stop this predatory practice, politicians across the country have made it an issue and most states are likely to pass bills to control the interest rates on same day loans and help distressed borrowers from being bankrupt.
How to apply for same day loans
Although there are a number of downsides, yet same day loans come really handy when people fall in dire need of quick cash. It is easier to get such a loan from a private lender than conventional lenders like credit unions or banks. Most of the private lenders have online presence. Here are the steps towards applying and getting a same day loan with lower interest rates.
Look for local companies – While looking for a lender of same day loan, you may opt for the local lenders. To find the lenders in your community, you may browse Internet or look in local newspapers. Call each of the companies to ask for whether or not they provide same day loans. If they do, then ask them about interest rates, loan repayment options and other fees and service charges applicable. You may make a decision about which company you want to work with only after comparing these criteria.
Inquire about required documentations – Once you have chosen a company, ask what types of documents they require you to furnish before processing the loan application. Usually the lenders of same day loans ask for photo identification and the latest pay stub to ensure that you have a regular source of income.
Request for a loan – While submitting your loan application, make sure your application requests for a minimum amount that can cover up your urgent financial requirements. Since same day loans are charged with higher interest rates than the conventional ones, you must avoid borrowing any bigger amount. The larger amount of money you take out, the more money the lender would charge.
Read the agreement – You must read the loan agreement before signing it. Make sure you read the loan agreement and other offered documents, and ask the lender for clarification if you have doubt about any loan term. You must not deal with a lender whose loan terms give him access to your bank account and thus seize your money.
Consider online lenders – You may consider online lenders that offer same day loans of larger amount and lower interest rates. You may search on your favorite loan search engine to find the list of such lenders. Modest and legitimate online lenders are likely to transfer funds directly to your savings bank account, once they approve your loan application.
Pay back the loan in time – Make sure you pay back the loan on the due date agreed upon by both you and your lender. Otherwise, you may need to pay hundreds of dollars in interests. Paying back the loan in time will also increase your chance of getting a same day loan from the same lender and with favorable loan terms in future, if needed. However, unless there is a real emergency, you may avoid borrowing same day loans.
While choosing a lender of same day loans, make sure you deal with a genuine and non-rapacious lender. You should work with a lender only if it is accredited by Better Business Bureau.
For the legitimate and reliable lenders of same day loans, you may use our loan search engine. Our network includes the good loan providers.