40% of Americans are unprepared for an emergency that costs less than $500.
When you find yourself strapped for cash or in an emergency situation, same-day loans could prove to be an option to buffer your sticky situation.
But what are same-day loans, and are they a viable option for you? Can they cover everything you need?
Let’s read on to discover if same day loans will work for you when you find yourself facing an unexpected situation with an empty bank account.
What Are Same-Day Loans?
Same-day loans, or also called payday loans, are cash loans that are approved and deposited into your bank account within 24 hours or one business day. You can apply online or in person, and if you choose an online same day loan, sometimes the waiting period is slightly longer.
The legality of same day loans will vary according to state. Before you consider applying, make sure you’re subjecting to your state’s laws.
The list of requirements to get a same day loan is very small. You must be 18 years or older, have a paycheck stub or proof of income, and an active bank account.
How Much Money Can I Get With A Same Day Loan?
The purpose of same-day loans is to provide the individual with enough cash to cover emergency or unexpected expenses, which is typically not a considerable amount. Usually, the amount of a same day loan will be in the range of $100 to $1000, although it can fluctuate depending on your provider.
If you’re looking for a larger amount for debt consolidation or other situations, a personal loan may suit you better.
What Are The Pros of A Same Day Loan?
Besides quickly cash, same-day loans do not require a credit check as traditional loans do. Even with a less-than-stellar credit score, you should be able to secure a same day loan.
You can also apply online instead of entering an establishment. The chances of receiving a higher loan amount are better if you apply online and in some cases more convenient.
What Should I be Concerned About With Same Day Loans?
Even though same day loans should be paid back quickly, skipping a payment may result in hefty late fees. A late payment can also mean a negative impact on your credit report.
Finances charges will vary according to your loan provider and the formula they use to calculate it. However, a general APR is often extremely high, sometimes reaching well over 400%.
By comparison, the APR of credit cards is significantly lower, ranging from 12% to up to 30%.
How do Payments Work?
Same-day loans are supposed to be distributed and paid back quickly, within as little as 2-4 weeks. This is when companies predict you’ll receive your next paycheck and be able to satisfy the loan.
Inability to pay the loan completely will result in the opportunity to “roll over” the loan, much like an extension. This comes with added fees on top of finance charges and the repayment of the original loan amount.
Same Day Loans: Are They Right For You?
Same day loans can be a quick and easy way to land cash in your pocket when a real need strikes. However, they’re not your only option for covering all your expenses, for the present or future.
Our aim is to assist you in improving your financial situation one step at a time with patience and knowledge. We’ve been featured on major networks, so check out our FAQs today to see how we can help you maintain peace of mind about your money.